§ Mr. Bill WalkerTo ask the Secretary of State for Scotland what arrangements he proposes to succeed the provisions of sections 5 and 7 of the Energy Act 1983 as they apply to Scotland.
§ Mr. LangThe Government appreciate that there are existing projects in Scotland where investment has been advanced against the backdrop of the rules of the obligation to purchase contained in the Energy Act 1983. We are, therefore, keen to ensure that the changes brought about by electricity privatisation neither disadvantage those who have invested nor materially affect the working of contracts already agreed.
The two Scottish boards have confirmed that any generator in Scotland whose decision on plant investment has been influenced by the existence of the provisions of the Energy Act 1983 in planning for the future and who has arrangements with a board to purchase electricity generated by him under the provisions of the Act will, if he chooses, be able to continue those for a five-year transitional period following privatisation. In commercial terms this is a significant commitment by the Scottish boards.
It would be inconsistent with the general thrust of privatising the industry to enshrine in legislation a permanent protection for a specific category of generators. The guiding principle behind our proposals in this area is to ensure that all economic sources will have fair access. The commitment given by the Scottish boards complements our proposals by securing that appropriate transitional arrangements are set in place.