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Drax B Power Station

Volume 958: debated on Tuesday 14 November 1978

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asked the Secretary of State for Energy what subsidy to Northern Electrical Industries Limited is involved in the price paid for the Drax B turbines by the Central Electricity Generating Board, in that the price agreed with Northern Electrical Industries Limited is higher than that which would have been obtained from other manufacturers.

As I announced to the House on 18th July 1977, the CEGB was asked to negotiate with Parsons (NEI) for the turbo-generators for Drax B. The commercial details of the main contract finally negotiated are a matter for the board which has said it is satisfied with the price agreed. There is no question of a subsidy to NEI.

asked the Secretary of State for Energy what compensation will now be paid to the Central Electricity Generating Board for the advance ordering of Drax B; and how much earlier is it now expected that Drax B will be completed than would have been the case if the Government had not intervened.

Under the Nuclear Safeguards and Electricity (Finance) Act 1978, compensation to a maximum of £50 million may be paid to the CEGB for the advance ordering of Drax B. I was advised by the board that the order for the station would have been placed in 1980 without Government intervention. Contracts were signed recently. It is planned to complete the station in 1986. No compensation payments will be made for expenditure after March 1986.