HC Deb 16 December 2002 vol 396 cc537-9W
Mr. Stunell

To ask the Secretary of State for Trade and Industry how much(a) direct and (b) indirect Government financial support has been made available to the energy sector in each year since 1990, excluding the nuclear and renewables industries. [82802]

Mr. Wilson

[holding answer 27 November 2002]The table shows how much direct Government financial support has been made available to the energy sector in each year since 1990, excluding the nuclear and renewables industries.

I refer the hon. Member to the reply I gave to him today, PQ No. 82803, for further information on how the figures were assembled.

£ million
Direct
1990–91 149.6
1991–92 465.2
1992–93 652.9
1993–94 431.7
1994–95 211.7
1995–96 8.4
1996–97 4.9
1997–98 4.9
1998–99 4.6
1999–2000 4.5
2000–01 81.3
2001–02 66.6

Note:

There was no indirect Government financial support.

Mr. Stunell

To ask the Secretary of State for Trade and Industry how much(a) direct and (b) indirect Government support has been given to the energy sector in each year since 1990. [82803]

Mr. Wilson

[holding answer 27 November 2002]I refer the hon. Member to the replies I gave him on 16 November 2001,Official Report, columns 918–19W and 17 December 2001, Official Report, column 102W. Since those figures were compiled, an error has been corrected in the 1990–91 figure for indirect Government support. In addition, there are minor increases in figures for direct Government support for years 1998–99 to 2000–01 to reflect the Research Council's more detailed investigation of their investments in sustainable energy.

The following table incorporates these amendments and includes expenditure for 2001–02.

Total support for the energy sector
£ million
Year Direct Indirect
1990–91 292.1 1,271.1
1991–92 579.4 809.7
1992–93 822.0 892.9
1993–94 603.5 963.1
1994–95 379.2 988.4
1995–96 245.2 793.5
1996–97 202.0 112.8
1997–98 220.4 126.5
1998–99 325.1 127.0
1999–2000 234.8 56.4
2000–01 342.1 64.9
2001–02 356.2 94.0

Notes:

1. The figures for direct support include:

  1. (a) Direct Government funding for research and development on renewable energy through the DTI's Sustainable Energy Programme and through Research Councils via the Science Budget
  2. (b) Support for the coal industry but excluding the impact of debt-write-offs and proceeds at the privatisation of British Coal and payments made in respect of historic liabilities retained in the public sector, such as health claims
  3. (c) Support for nuclear based on the funding to the UKAEA details of which were included in the reply to a parliamentary question from the hon. Member for Hazel Grove (Mr. Stunell) on 14 November 2001, Official Report, columns 756–57W.
    4. 539W
  4. (d) Support for oil and gas production through Sustained Hydrocarbons Additional Recovery Programme (SHARP) and predecessor programmes, and development of new products and services and competitiveness improvement within the UK oil and gas supplies sector.
2. The figures for indirect support include:
  1. (a) expenditure through the Non Fossil Fuel Obligation (NFFO), the Scottish Renewables Obligation and the Northern Ireland NFFO funded by the electricity consumer through the Fossil Fuel Levy in Great Britain and the variant arrangements in Northern Ireland.
  2. (b) The premium received by Nuclear Electric plc over and above the market price for electricity in the period 1990–96 details of which were provided in the reply to the hon. Member for Hazel Grove (Mr. Stunell) on 14 November 2001, Official Report, columns 756–57W.
Since 1998 the Government have also worked with the oil and gas industry through the Oil and Gas Industry Task Force, now PILOT, to identify and deliver the measures necessary to ensure continued profitable activity on the UK Continental Shelf. The Government are currently providing British Energy with a credit facility of up to £650 million in respect of the period up to 9 March 2003 and has taken security for the loan over the company's assets. The facility has been provided in respect of the company's working capital requirements and cash collateral for trading in the UK and North America. As of 28 November the company has drawn down £382 million of the facility available to them.

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