§ Mr. SalmondTo ask the Secretary of State for Scotland what consultations he has had with Scottish Hydro-Electric plc on measures to secure economic development and social improvement in the hydro catchment area; and if he will make a statement.
§ Mr. Allan Stewart[holding answer 14 May 1991]: Scottish Hydro-Electric plc, alone among the Great Britain public electricity suppliers, has a condition in its 210W licence—issued by the Secretary of State for Scotland on 28 March 1990—specifically requiring it to charge uniform tariffs throughout its area irrespective of remoteness. This very significant commitment is possible because the company has retained the bulk of the low cost hydro generation capacity and can use this to offset the higher unit transmission and distribution costs associated with the dispersed nature of the electricity supply system in the north of Scotland.
§ Mr. SalmondTo ask the Secretary of State for Scotland (1) if he will direct Scottish Hydro-Electric plc to cease current accounting practices which exempt dams, tunnels, roads, associated stone buildings and other assets from depreciation; and if he will make a statement;
(2) what representations he has made to Scottish Hydro-Electric plc regarding its current accounting practices; and if he will make a statement.
§ Mr. Allan Stewart[holding answer 14 May 1991]: The types of asset to which the hon. Member refers have, for accounting purposes, infinite lives. They are expected, with appropriate maintenance, to last for as long as they are required. In addition, they are mainly capital investments dating from many years in the past. I have no intention of directing any change in the accounting policy which was explained in the company's annual reports and accounts for 1989–90, copies of which are in the House Library.