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Electricity (Production Costs)

Volume 124: debated on Monday 14 December 1987

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To ask the Secretary of State for Energy what is his estimate of the cost, in terms of pence per kilowatt hour, of the electricity output of (a) new coal-fired power stations, (b) new nuclear power stations, (c) new combined heat and power stations, and (d) the Severn barrage.

The latest analysis of comparative generating costs showed that the average lifetime costs per KWh adjusted to April 1987 prices was 2·82p/KWh for Hinkley Point B and 3·03 p/KWh for the first stage of the coal-fired station at Drax. The Severn Tidal Power Group indicated in a study published in July 1986 that the cost of electricity produced from a barrage would be 3·45 p/KWh, adjusted to April 1987 prices. It is not possible to estimate the cost of electricity output from CHP stations because of the wide variation in design options.