HC Deb 19 November 2003 vol 413 cc975-7W
Mr. Beard

To ask the Secretary of State for Trade and Industry what the average balance between supply and demand of electricity was at(a) peak and (b) off-peak times last winter; what she estimates the balance is likely to be in (i) five years time and (ii) 10 years time; and what her forecasts are of (A) demand and (B) the projected investment plans of the industry over those periods. [138875]

Mr. Timms

According to figures published in the DTI Digest of UK Energy Statistics, the maximum simultaneous electricity load met during the winter of 2002–03 was 61,717 MW. This represented 87.6 per cent. of the generating capacity owned by major power producers in the UK, although this figure would fall to 85.2 per cent. if the interconnector with France were included. Average load across the whole winter period (October to March) was approximately 49,000 M W.

Provisional estimates arising from work to update the DTI energy projections in Energy Paper 68 indicate that electricity demand is likely to grow by around 1.25 per cent. per annum over the next decade. On this basis, demand in five years time would be around 6 per cent. above current levels and demand in 10 years around 13 per cent. above current levels.

Future investment by the industry, and hence the future balance between supply and demand, is a commercial matter for electricity market participants. The UK market provides strong financial incentives for electricity suppliers to contract for sufficient power to meet their customers' needs and for generators to deliver the power they have contracted to provide.

Malcolm Bruce

To ask the Secretary of State for Trade and Industry how much electricity generating capacity was available in the United Kingdom in each year since 1997, listing the contribution made by(a) coal, (b) gas, (c) nuclear power, (d) oil, (e) imports and (f) others; and what projections she has made of available generating capacity from each of these in the United Kingdom in each year to 2020. [139816]

Mr. Timms

Figures for the electricity generating capacity available in the United Kingdom in each year since 1997 are published in Table 5.7, Plant Capacity, of the Digest of United Kingdom Energy Statistics 2002–03. Copies of this publication are available in the Library of the House.

The latest full published projections of available generating capacity in the United Kingdom up to 2020 are published in Annex G, ESI Capacity, of Energy Projections for the UK, Energy Paper 68. This publication is also available in the Library of the House. Work to update these projections is currently underway for completion around March 2004. The latest projections, representing work in progress, are available on the DTI web site (www.dti.gov.uk/energy/sepn/projections.pdf).

Miss McIntosh

To ask the Secretary of State for Trade and Industry what recent assessment she has made of the benefits of transmitting energy underground. [134127]

Mr. Timms

None. It is recognised that compared with overhead lines, there are potential benefits of underground transmission. However, benefits must always be weighed against cost, which at 400,000 volts in particular, is significantly higher per kilometre than an overhead line.

Malcolm Bruce

To ask the Secretary of State for Trade and Industry how much spare generating capacity there is in the United Kingdom; and how much spare capacity her Department deems to be a sufficient safety net to safeguard electricity supplies for winter 2003–04. [139814]

Mr. Timms

The October 2003 Update to the National Grid Company (NGC) Seven Year Statement projects a plant margin of 19.3 per cent. for England and Wales for the winter 2003–04. By way of comparison, the projected plant margin for the winter of 2002–03 in NGC's October 2002 Update was 17.4 per cent. NGC project that peak demand under average cold spell (ACS) conditions this winter would be 55,900 MW and that the registered capacity of generating stations, including interconnectors with France and Scotland, would be 66,697 MW. The figures do not include additional reserves that NGC has recently contracted for and nor do they allow for any further return of mothballed plant.

The electricity market provides electricity suppliers and generators with strong financial incentives to deliver the power they have contracted to provide. It is not the Government's role to specify how market participants should meet their contracted obligations.

The Department of Trade and Industry, together with Ofgem, monitors the security of gas and electricity supplies through the Joint Energy Security of Supply Working Group (JESS). The latest report from JESS was published on the Department's web site (www. dti.gov.uk/energy/jess/jessreport3.pdf) on 12 November and copies will be placed in the library of the House when available.