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Nuclear Levy

Volume 164: debated on Monday 18 December 1989

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13.

To ask the Secretary of State for Energy what is his latest estimate of the level of the nuclear levy.

The size of the fossil fuel levy will depend on the prices negotiated for nuclear and fossil fuel electricity. These have still to be agreed.

What will be the upper and lower limits of the nuclear levy? How much will that cost the taxpayer and what would be the advantage to the consumer if coal-fired power stations were allowed to compete freely and on the same basis with nuclear power?

The cost of nuclear power is being paid for by the consumer. A fossil fuel levy, or a nuclear levy as the hon. Gentleman refers to it, will not change those arrangements. For the reasons that I gave in my original answer, I am not in a position to quote the amount of fossil fuel levy. However, the decision that I made with regard to nuclear power on 9 November will mean that the fossil fuel levy will be somewhat lower than it would otherwise have been.