HC Deb 20 December 1990 vol 183 cc304-6W
Mr. Morgan

To ask the Secretary of State for Energy what percentage of applicants using(a) customer application forms and (b) public application forms were (i) unsuccessful in applying for shares in the regional electricity companies' flotation and (ii) also had their cheques cashed.

Mr. Heathcoat-Amory

Approximately 3 per cent. of people applying as customers did not receive an allocation in their supplying company. Where no allocation was made, cheques were returned without being cashed where practicable. The main case where this was not practicable was where people had made separate applications for a number of different companies on one application form. As each application has to be processed separately, no information is available as to the number of such forms which were entirely unsuccessful.

Similarly, as non-customers were able to apply for as many of the 12 regional electricity companies as they liked, no figures are available as to the number of such people who received no shares in any of the companies.

Mr. Morgan

To ask the Secretary of State for Energy what consultations he has had with the Director General of the Office of Electricity Regulation regarding mergers and takeovers involving the 12 electricity distribution companies.

Mr. Heathcoat-Amory

None.

Mr. Dobson

To ask the Secretary of State for Energy whether his Department was consulted on the appointment of a firm of parliamentary consultants by the regional electricity companies.

Mr. Wakeham

No.

Mr. Dobson

To ask the Secretary of State for Energy why he has agreed to exclude the disposal of their whole retail interests by a regional electricity company from the real estate clawback arrangements covering the disposal of other property.

Mr. Wakeham

I refer the hon. Member to the answer given to the hon. Member for Cardiff, West (Mr. Morgan) on 19 November at column6.

Mr. Morgan

To ask the Secretary of State for Energy when he next expects to review the structure of the electricity distribution industry of England and Wales; and if he will make a statement.

Mr. Heatheoat-Amory: I have no such plans.

Mr. Morgan

To ask the Secretary of State for Energy when he next expects to review the role of Kleinwort Benson as his advisers on the electricity supply industry.

Mr. Heathcoat-Amory

I do not expect to review the role of Kleinwort Benson before the privatisation of the electricity supply industry in England and Wales is complete.

Mr. Morgan

To ask the Secretary of State for Energy what representations he has received regarding the cashing of cheques accompanying unsuccessful applications for shares in the 12 electricity distribution companies.

Mr. Heathcoat-Amory

The share information office and my Department have received a small number of representations on the presentation of cheques for unsuccessful applications. By today a substantial proportion of those applicants who have had cheques cashed should have received returned money cheques.

Mr. Morgan

To ask the Secretary of State for Energy what is his policy on mergers, takeovers and stake-building regarding the 12 newly privatised electricity distribution companies.

Mr. Heathcoat-Amory

I refer the hon. Member to the reply that I gave him on Tuesday 18 December 1990,Official Report, columns 97–98.

Mr. Dobson

To ask the Secretary of State for Energy whether any of the firms advising any of the regional electricity companies were allowed to participate in the buying or selling of regional electricity company shares or advise or act as brokers to any third parties who did so participate.

Mr. Wakeham

The terms under which the regional electricity companies employed advisors for the recent flotation are matters for the companies.

Mr. Morgan

To ask the Secretary of State for Energy what is his most up-to-date estimate of the amounts arising from the encashment of cheques of unsuccessful or scaled-down applications for shares in the 12 electricity distribution companies.

Mr. Heathcoat-Amory

The total value of all cheques cashed under the United Kingdom public offer was approximately £5.3 billion,. Of this approximately £4.2 billion was repaid to the public as a result of scaled-down or unsuccessful applications. The remaining £1.1 billion represents the amount paid by the public as the first instalment for the shares sold to them.

Mr. Dobson

To ask the Secretary of State for Energy whether he, his officials or advisers had discussions with any retailing interests before deciding to exclude the disposal of the whole of their retail concern by a regional electricity company from the real estate clawback arrangements; and whether there have been any such discussions since.

Mr. Wakeham

Neither I nor my officials have had or are aware of any such discussions.

Mr. Morgan

To ask the Secretary of State for Energy if he has any plans to make an estimate, based on previous privatisations, of the proportion of the shares in each of the regional electricity companies that will be owned by the general public 12 months after flotation; and if he will make a statement.

Mr. Heathcoat-Amory: No.