PowerGen (Hansard, 26 July 1990)

§ Mr. Morgan
To ask the Secretary of State for Energy what consultations he(a) has had and (b) proposes to have with the direct electricity consumers of PowerGen about any trade sale.

§ Mr. Baldry
Consultations with PowerGen's customers are a matter for the company.

§ Mr. Morgan
To ask the Secretary of State for Energy what period of time he proposes for alternative trade sale bidders to Hanson for PowerGen to emerge; and what period of time he proposes between short-listing of the qualified bidders and the final day for tenders to be received.

§ Mr. Baldry
These matters are under consideration.

§ Mr. Dobson
To ask the Secretary of State for Energy on what date he, his officials, or any of his privatisation advisers first received an approach from Hanson about PowerGen.

§ Mr. Wakeham
As I told the House on 23 July at column 51, discussions on the best way to effect the private sale of PowerGen have been going on for a number of weeks.

§ Mr. Morgan
To ask the Secretary of State for Energy what representations he has received from the 12 area board chairmen regarding the sale of PowerGen.

§ Mr. Baldry
None.

§ Mr. Morgan
To ask the Secretary of State for Energy (1) when he last met the Director General of the Office of Electricity Regulation to discuss the sale of PowerGen, and the implications for the regulatory regime of a single purchaser;
(2) what changes he is considering to the regulatory regime in the event of a successful trade sale of PowerGen to Hanson, pursuant to his statement to the House of 23 July.

§ Mr. Baldry
My right hon. Friend has not met the Director General of Electricity Supply to discuss the sale of PowerGen. I do not expect there to be any implications for the regulatory regime of any sale of PowerGen to a single purchaser.

§ Mr. Dobson
To ask the Secretary of State for Energy whether the European Community's acceptance of a 15 per cent. limit on holdings in privatised electricity companies will be renegotiated in the event of the sale of PowerGen to one bidder.

§ Mr. Wakeham
The Government's special share proposals for the privatised electricity companies did not 521W require specific approval from the European Commission. As I said in the House on 23 July at column 42, if a trade sale proceeds a golden share would be inappropriate for a subsidiary. The Government believe that the public interest is better protected by a contractual provision in the sale and purchase agreement.

§ Mr. Morgan
To ask the Secretary of State for Energy when he last met Sir Michael Richardson of N.M. Rothschild to discuss the sale of PowerGen.

§ Mr. Baldry
Details of my right hon. Friend's meetings with his and the electricity industry's advisers are confidential.

§ Mr. Morgan
To ask the Secretary of State for Energy what representations he has received from the trade unions representing the work force at PowerGen regarding the trade sale proposal.

§ Mr. Baldry
Representatives of the trades unions met my right hon. Friend and me on 24 July, and raised a number of issues. My right hon. Friend reaffirmed that any new owner of PowerGen would have to take on the same obligations in respect of the work force as PowerGen has now. My right hon. Friend also confirmed that arrangements would be made for PowerGen employees to receive benefits broadly comparable to those they would have received in a public offering of the company's shares.

§ Mr. Morgan
To ask the Secretary of State for Energy what representations he has received from the board and management of PowerGen regarding the proposal for a trade sale of PowerGen.

§ Mr. Baldry
My right hon. Friend and I have had discussions with the chairman, chief executive and non-executive members of the board of PowerGen concerning the possible trade sale of the company. The chairman has promised the company's co-operation in taking forward the trade sale and flotation options in parallel.

§ Mr. Morgan
To ask the Secretary of State for Energy if he will assess the implications for the United Kingdom coal mining industry of the sale of PowerGen to any company with substantial coal mining interests.

§ Mr. Baldry
The United Kingdom coal mining industry has a prosperous future if it can produce coal at a competitive price. This will be the case whether or not PowerGen is sold to a company with substantial coal mining interests.