HC Deb 31 October 2002 vol 391 cc974-5W
Dr. Cable

To ask the Secretary of State for Trade and Industry what representations she has received from firms involved in the generation and sale of electricity in the United Kingdom, in response to the funding package put in place to support British Energy; and if she will make a statement. [77479]

Ms Hewitt

My Department has received representations from a number of companies in relation to the Government's financial assistance to British Energy.

Dr. Cable

To ask the Secretary of State for Trade and Industry what assessment she has made of the impact on other electricity generators of the rescue package for British Energy; and if she will make a statement. [77482]

Ms Hewitt

The Government's overriding objectives in providing financial assistance to British Energy are to ensure nuclear safety and security of supply while protecting the interests of taxpayers. My Department is currently considering with the company options for its future. Any assistance to restore viability will have to comply with EU rules, including avoiding undue distortion of competition

Dr. Cable

To ask the Secretary of State for Trade and industry what steps she is taking to ensure that the British Energy Trading arrangements work effectively in Scotland; and if she will make a statement. [77481]

Ms Hewitt

The creation of a wholesale electricity market for GB, as set out in the BETTA (British Electricity Trading and Transmission Arrangements) proposals will mean that the current barriers that independent Scottish generators, along with British Energy, face in selling to the England and Wales market will be removed.

The Nuclear Energy Agreement (NEA), which was put in place at the time of privatisation, ensures that British Energy has buyers for its generation output. The terms of the NEA have recently been renegotiated and are subject to final approval by Ofgem, who have indicated that they are 'minded to approve the new terms. Under the new terms the NEA will cease to exist on the 1 April 2006 or on the advent of BETTA, whichever is the sooner.

Government announced in April 2002 that it intended to bring forward legislation to implement BETTA when parliamentary time allowed. Detailed consultations on the new arrangements to create a GB market are already underway and will be ongoing over the coming months.