HL Deb 20 April 1990 vol 518 cc306-8WA
Lord Williams of Elvel

asked Her Majesty's Government:

Whether the formulae specified (a) for the correction factor K in Schedule 2 to the Fossil Fuel Levy Regulations 1990, namely

are correct, given that in the first case the maturity date of LIBOR is not specified, and in the second case, the price determined by the director may be a random factor.

Viscount Ullswater

The definition of LIBOR in Schedule 1 to Regulation 2(3) clearly states that the maturity date is three months. During a security period it is quite understandable that the director will wish to discuss with licensed suppliers what effect the operation of the Fuel Security Code will have on pool prices. In determining a price he will have to have regard to his duties to licence holders and to consumers under Section 3 of the Electricity Act.

Lord Williams of Elvel

asked Her Majesty's Government:

What measures they propose to ensure that consumers of electricity understand the formulae set out in Schedules 2 and 3 to the Fossil Fuel Levy Regulations 1990.

Viscount Ullswater

These formulae will be used by the Director General of Electricity Supply (DGES) to compute the rate of the fossil fuel levy. I understand that he, and his staff, are satisfied that they will have no difficulty in calculating the levy rate from these formulae. Regulation 7 of the Fossil Fuel Levy Regulations 1990 requires the DGES to publish the rate of the levy in such a way as to bring it to the attention of electricity consumers. Consumers will therefore be able to see quite clearly the additional cost they are paying for the strategic and environmental benefits.