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Electricity Privatisation

Volume 181: debated on Wednesday 29 August 1990

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To ask the Secretary of State for Energy what factors determined the price for shares in the regional electricity companies.

In determining the share price the key factor was the dividend yield to be applied to pro forma dividends disclosed in the prospectus. The offer was priced having regard both to current stock market circumstances and to the fact that the price has to be robust to movements in the stock market up till the start of dealings.

To ask the Secretary of State for Energy (1) what consultations he had with the Association of District Councils or the Welsh Association of District Councils regarding profit-sharing arrangements for showrooms previously owned by municipal electricity undertakings and disposed of post-privatisation by the electricity distribution companies;(2) what consultations he undertook with the Association of District Councils regarding the arrangements for clawback or profit-sharing on electricity distribution company properties, previously owned by municipal electricity undertakings and disposed of for other purposes post-privatisation;(3) what representations he has received regarding clawback or profit-sharing arrangements with the appropriate local authorities for properties vested in electricity distribution companies, owned by municipal electricity companies before 1948, and disposed of for non-electricity related purposes post-privatisation.

I have not received any such representations or held such consultations.

To ask the Secretary of State for Energy on what date he was first approached by MCA Merchandising regarding the requirement for a licence fee relating to copyright for the advertising campaign for the flotation of the electricity distribution companies.

Her Majesty's Government have never been approached by MCA Merchandising regarding a licence fee relating to copyright for the advertising for the flotation of the distribution companies. This is a matter between MCA Merchandising and WCRS, the advertising agency.

To ask the Secretary of State for Energy what recent discussions he has had with the chairmen of National Power and PowerGen regarding the proposed dates for stock market flotation.

The details of my discussions with the chairmen of National Power and PowerGen are confidential. I intend to float both generating companies next February, subject to market conditions.