HC Deb 25 May 1989 vol 153 cc634-5W
Mr. Dykes

To ask the Secretary of State for Energy whether any changes will be made to his Department's cash limit or running costs limit for 1989–90.

Mr. Parkinson

Subject to parliamentary approval of the necessary Supplementary Estimates, the following changes will be made.

The cash limit for class VI, vote 3 will be increased by £2,290,000 from £35,599,000 to £37,889,000. This extra provision is sought to meet an increase of £2,190,000 in the cost of the Piper Alpha technical investigation and public inquiry. It will also include £100,000 to cover the cost of setting up the Office of Electricity Regulation prior to the appointment of the Director General of Electricity Supply as head of the Office of Electricity Regulation, expected to take effect from 1 September 1989. This latter amount will increase the Department of Energy's running costs limit from £38,022,000 to £38,122,000. It will be offset by a corresponding decrease from £30,000,000 to £29,900,000 in the cash limit for class VI, vote 6, where this provision was originally included.

The cash limit for class VI, vote 7, which is a new vote providing for expenditure by the Office of Electricity Regulation, will be £7,796,000, of which £6,320,000 will he the running costs limit.

Expenditure on vote 7 and the appointment of the Director General of Electricity Supply are both subject to the passage of the Electricity Bill currently before Parliament.

These increases will be charged to the Reserve and will not therefore add to the planned total of public expenditure.