§ Mrs. Anne CampbellTo ask the President of the Board of Trade what share of the fossil fuel levy is received by(a) renewable sources of energy, (b) Nuclear Electric and (c) Scottish Nuclear.
§ Mr. Charles WardleFor details of payments from the fossil fuel levy to renewable generators and Nuclear Electric, I refer the hon. Member to the answer my hon. Friend the Minister for Industry and Energy gave to the hon. Member for Pembroke (Mr. Ainger) on 12 July 1994,Official Report, column 518. Scottish Nuclear does not receive payments from the levy.
§ Mrs. Anne CampbellTo ask the President of the Board of Trade what is the purpose of the fossil fuel levy as paid to Nuclear Electric.
§ Mr. Charles WardleThe fossil fuel levy finances the premium element of the price paid by the regional electricity companies for the electricity that they are required to purchase under the non-fossil fuel obligation. In Nuclear Electric's case, the levy payments cover the above-market costs of generating nuclear power. Together with revenues from sales of electricity at market prices, levy payments enable Nuclear Electric to cover the full costs of generating electricity from its stations, including operating costs, depreciation and provisions for the so-called "back end" liabilities.
§ Mrs. Anne CampbellTo ask the President of the Board of Trade what assessment he has made of the appropriateness of Nuclear Electric using the fossil fuel levy to help with its cash flow.
§ Mr. Charles WardleThe existing arrangements to enable the full cost of nuclear power in the United Kingdom to be met, including the fossil fuel levy, are being assessed as part of the Government's review of the future prospects for nuclear power.