HC Deb 29 January 1996 vol 270 cc510-2W
Mrs. Beckett

To ask the President of the Board of Trade what is his latest estimate of the date for nuclear power generation privatisation; and if he will suspend his Department's plans pending publication by the Trade and Industry Committee of its report into nuclear privatisation. [12226]

Mr. Lang

Privatisation of the nuclear power generation industry is on track for the summer of this year and will not be suspended pending the issue by the Trade and Industry Committee of its report.

Mrs. Beckett

To ask the President of the Board of Trade, pursuant to his answer of 10 January,Official Report, column 227, what was the total expenditure on management, financial and other consultants employed by his Department to advise on the sale of Nuclear Electric and Scottish Nuclear in each year since 1988–89. [12225]

Mr. Lang

There was no expenditure on the sale of Nuclear Electric and Scottish Nuclear in the years 1988–89 to 1994–95. Pursuant to my answer of 10 January,Official Report, columns 226–27, actual expenditure for the year to 31 March 1996 will be reported to Parliament in the normal way through the appropriation account.

Mrs. Beckett

To ask the President of the Board of Trade what has been the total amount of money raised by the non-fossil fuel obligation; and how much of those proceeds have been distributed to Nuclear Electric. [11252]

Mr. Lang

[holding answer 24 January 1996]: The fossil fuel levy was introduced on 1 April 1990. The information requested is:

Year Fossil fuel levy receipts Payments from levy to Nuclear Electric £million
1990–91 1,175 1,135
1991–92 1,324 1,281
1992–93 1,348 1,291
1993–94 1,234 1,139
1994–95 1,205 1,081

Sources:

Office of Electricity Regulation (amounts raised) and Non-Fossil Purchasing Agency Ltd. (Payments).

The balance of levy receipts is used to finance payments to British Nuclear Fuels plc and to renewables generators, and to cover certain other costs such as administration costs.

Mrs. Beckett

To ask the President of the Board of Trade what amount of money is estimated to be raised from the privatisation of Nuclear Electric and Scottish Nuclear in terms of(a) unspent non-fossil fuel obligation moneys and (b) cash surpluses at the time of the sale. [11309]

Mr. Lang

[holding answer 24 January 1996]: The proceeds of the sale of British Energy will depend on a variety of factors, including market conditions at the time of sale. It is not possible to put a fixed estimate on proceeds in advance of sale.

Mrs. Beckett

To ask the President of the Board of Trade what amount of money has been spent on redundancy payments for staff in(a) Nuclear Electric and (b) Scottish Nuclear in each of the last five years; and how much is estimated to be spent in 1996–97. [11310]

Mr. Lang

[holding answer 24 January 1996]: Information on staff redundancy costs is given in the annual report and accounts of Nuclear Electric plc. Information for 1995–96 and beyond will be published in the accounts of the relevant companies for those years. Questions on Scottish Nuclear Ltd. are a matter for my right hon. Friend the Secretary of State for Scotland.

Mrs. Beckett

To ask the President of the Board of Trade what plans he has to retain the non-fossil fuel obligation after privatisation of British Energy; what is its estimated level; and if he will make a statement. [11254]

Mr. Lang

[holding answer 24 January 1996]: Under the non-fossil fuel obligation, NFFO, the regional electricity companies, RECs, are required to make arrangements to secure the availability of specified amounts of non-fossil—nuclear and renewables—sourced electricity generating capacity. The fossil fuel levy recovers the above-market costs to the RECs of securing this capacity. The nuclear NFFO will continue until 1998, but the element of the fossil fuel levy that is attributable to Nuclear Electric will end at the time of privatisation, subject to the recovery of outstanding moneys. The levy will continue to cover renewables and British Nuclear Fuels plc. We cannot give a figure for the reduced rate at this time, as it will depend on a number of factors that are still uncertain.

Mrs. Beckett

To ask the President of the Board of Trade how much of the non-fossil fuel obligation distributed to Nuclear Electric(a) remains as cash surplus, (b) has been used for decommissioning, (c) has been used for waste reprocessing, (d) has been invested in capital assets and (e) has been spent elsewhere. [11253]

Mr. Lang

[holding answer 24 January 1996]: Details of nuclear premium received by Nuclear Electric under the NFFO arrangements and of their expenditure are contained in Nuclear Electric's annual report and accounts. The nuclear premium forms part of their overall income.

Mrs. Beckett

To ask the President of the Board of Trade, pursuant to his answers of 10 January,Official Report, columns 226–27, to whom the expenditure provision for restructuring and privatisation of the nuclear power generation industry will be given in 1995–96; and what is the value of the contacts with the companies advising his Department on the sale. [11311]

Mr. Lang

[holding answer 24 January 1996]: Pursuant to my answers of 10 January 1996, Official Report, columns 226–27, expenditure in 1995–96 on restructuring and privatisation of the nuclear power generation industry will be in respect of the companies advising the Government during that financial year. Actual expenditure will be reported to Parliament in the normal way through the appropriation account. The value of individual contracts with companies is commercially confidential.