Electricity Privatisation (Hansard, 2 November 1989)

§ Mr. Blair
To ask the Secretary of State for Energy what is his latest estimate of the price of nuclear-generated electricity after privatisation.

§ Mr. John Wakeham
Negotiations on contracts for the supply of nuclear-generated electricity are currently taking place between National Power and the area electricity boards. I cannot pre-empt their outcome.

§ Mr. Blair
To ask the Secretary of State for Energy whether he has made an assessment of the impact of privatisation on prices of electricity to industry.

§ Mr. Wakeham
Prices for large industrial users of electricity will depend on the outcome of individual negotiations between customers and suppliers or generators, subject to relevant statutory and licence requirements. The resulting prices are likely to depend on a number of factors, including the degree of load management that the customer is prepared to accept.

§ Mr. Blair
To ask the Secretary of State for Energy whether he has made an estimate of job losses in the coal industry as a result of electricity privatisation.

§ Mr. Wakeham
The coal industry will need to ensure that its future output and prices meet the needs of its main customers including the privatised electricity generators. Employment in the industry will depend both on demand for coal and on future productivity gains.

§ Mr. Blair
To ask the Secretary of State for Energy whether he has made an estimate of the sale proceeds of National Power, Power Gen, the area boards and the national grid.

§ Mr. Wakeham
The level of proceeds from the electricity industry sales will depend on a number of factors including the overall capital structure of the individual companies, and the state of the market at the time of flotation. It is therefore too early to speculate on the outcome.