Hansard

Electricity Privatisation

Volume 186: debated on Monday 18 February 1991

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Mr. Kirkwood

To ask the Secretary of State for Energy if he will publish in the Official Report the details relating to the flotation of the electricity generating companies on (a) the number of individuals who responded to the official advertising campaign and registered as prospective applicants in advance of the sale, (b) the number of those pre-registered who subsequently were not allocated any shares, (c) the value of the cheques received from those pre-registered who subsequently were not allocated any shares, (d) the date on which the cheques received from unsuccessful pre-registered applicants were encashed, (e) the date when the subsequent refunds were subsequently made and (f) the value of the interest generated by the encashment of cheques prior to refund to unsuccessful applicants.

Mr. Heathcoat-Amory

The available information is as follows:

  • (a) By midnight on 14 November 1990 the electricity share information office had received approximately 7ยท3 million applications to register;
  • (b) Approximately 97 per cent. of registrants who duly applied as customers received an allocation. No figures are available in respect of registrants who applied other than as customers;
  • (c, f) The systems employed to record applications and account for interest do not permit the separate identification of data relating to wholly unsuccessful and partially successful applications. The value of cheques submitted with wholly unsuccessful applications by registrants and of the interest earned on those cashed is therefore not available;
  • (d, e) Cheques from the public in the retail offers were cashed principally in the week 10 to 14 December 1990. Refunds of application monies were dispatched by first-class post on a phased basis, principally from 16 to 19 December 1990. The majority of wholly unsuccessful application forms and their accompanying uncashed cheques were returned the previous week.

    • Mr. Kirkwood

    To ask the Secretary of State for Energy if he will publish in the Official Report details relating to the information made available to the public in advance of the flotation of the electricity generating companies about encashment of cheques where no shares were allocated to them.

    Mr. Heathcoat-Amory

    The prospectus for the 12 regional electricity companies share offers stated in chapter VII, paragraph 8 of the terms and conditions of application that the right was reserved to present for payment all cheques or bankers' drafts received. It also stated in chapter VI, section 2e that this would be avoided where practicable in respect of applications for which it was not expected to make an allocation.

    Mr. Kirkwood

    To ask the Secretary of State for Energy whether he is satisfied with the procedures used to refund money in the electricity generating companies flotation to those who had pre-registered but were subsequently allocated no shares; and whether he has any plans to use such a system in any future flotations.

    Mr. Heathcoat-Amory

    In the case of the 12 regional electricity companies share offers, the procedures were designed to enable cheques to be returned to applicants receiving no allocation as quickly as possible; most received them before Christmas.For the minority of cases where no shares were allocated, but where it was not practicable to avoid cashing cheques, provision was made for refunds to be issued; this took place in the majority of these cases before Christmas.For the generating companies share offers the arrangements are much simpler, not least because, as only two companies are being offered together, it will not be necessary to cash cheques that are duly submitted with application forms unless it is expected that an allocation will be made.