HC Deb 01 February 1990 vol 166 cc260-1W
Mr. Austin Mitchell

To ask the Secretary of State for Energy what studies he has commissioned of the effect of a non-fossil fuel levy on electricity prices on(a) price and sale prospects of area boards, (b) incentives for larger users to generate their own electricity, (c) fuel prices in the United Kingdom compared to the EEC countries and (d) substitution of gas.

Mr. Baldry

The fossil fuel levy is designed to ensure that the costs of the non-fossil fuel obligation are shared out amongst all electricity suppliers. Otherwise, the public electricity suppliers would be put at a competitive disadvantage and proceeds affected. The levy does not add to the total cost of electricity, it identifies a cost that is already there. In general, therefore, the introduction of the levy will not have a significant impact.