§ Mr. Simon HughesTo ask the Secretary of State for Energy on what calculations and information he bases his statement that the non-fossil fuel levy will decrease between now and 1998.
§ Mr. BaldryThe rate of the levy depends predominantly on the difference between the market price for electricity and the cost of electricity under the terms of the nuclear contracts which contain incentives for Nuclear Electric to improve efficiency. This difference is expected to get smaller over the period of the contracts. The rate of the fossil fuel levy is therefore expected to decline significantly during the eight-year period of the nuclear contracts.