§ Mr. Simon HughesTo ask the Secretary of State for Energy what is the basis for the assumption that the area supply companies in the electricity industry will require a £5 billion programme of capital investment; and if he will make a statement.
§ Mr. BaldryThe estimated capital expenditure of £5 billion is based on the public electricity supply companies' (the successors to the area boards) assessment of the investment requirements of their local networks over the next five years. It includes projected expenditure on providing new connections, reinforcing the network where necessary and replacement of old equipment. The actual level of expenditure will be a matter for the companies themselves, subject to their licence and statutory obligations.