HC Deb 23 October 1992 vol 212 cc415-6W
Mr. Llew Smith

To ask the President of the Board of Trade when he last discussed electricity pricing with the Director General of the Office of Electricity Regulation; and what decisions were taken.

Mr. Eggar

I have consultations with the Director General of Electricity Supply from time to time on a range of issues. Licence conditions, including the electricity price controls, are a matter for the director general.

Sir Teddy Taylor

To ask the President of the Board of Trade what response he has made to the public statement of the chief executive of PowerGen on the relative costs of coal and gas-fired electricity production and on the policy of regional electricity companies on contracts for electricity; and if he will make a statement.

Mr. Eggar

The relative costs of coal and gas-fired electricity depend significantly upon the contractual terms of fuel purchase and the contractual terms under which the power station is to be constructed and operated. These are commercial matters for the companies concerned. My Department will be assessing the evidence available on the comparative costs of power stations using different fuels as part of the Government's review. It is for the Director General of Electricity Supply to ensure that regional electricity companies comply with their obligation to purchase electricity from the most economic source available.

Mr. Spearing

To ask the President of the Board of Trade if he will specify the statutory authority by which the suppliers of natural gas to undertakings using such gas

Programme Start Date Projects approved by 31 March 1991 Projects approved by 31 March 1992 Projects approved since 31 March 1992
Molecular Electronics 3 February 1988 4 0 0
Advanced Semiconductor Materials 3 February 1988 9 2 1
Industrial Measurement Systems 3 February 1988 23 9 3
Eukaryotic Genetic Engineering 3 February 1988 6 3 1
Nanotechnology 3 February 1988 9 7 6

for generation for sale to the electricity pool are permitted to charge for gas that may not be consumed; and if he will give consideration to introducing legislation to prohibit any such practice.

Mr. Eggar

[holding answer 22 October 1992]: The contractual arrangements between suppliers of natural gas and customers engaged in electricity generation are a commercial matter for the companies concerned.