Electricity (Privatisation)

Part of the debate – in the House of Commons at 9:03 pm on 7 March 1988.

Alert me about debates like this

Photo of Mr Peter Rost Mr Peter Rost , Erewash 9:03, 7 March 1988

I wish the hon. Gentleman would belt up so that we can get on with the debate.

We are bottom of the league in using our municipal refuse. We prefer to dump it in holes rather than put it into power stations, produce electricity and heat cities with it. A very good scheme in Edmonton uses some of London's refuse to produce electricity. There is also a very good scheme in Nottingham to produce district heating and electricity. However, we have not tapped the huge potential that exists for producing cheaper electricity and heating, simply because the nationalised industry—the CEGB—has not wanted to develop the technology.

As my hon. Friend the Member for Exeter (Mr. Hannam) said, there is enormous potential for producing far more cheap electricity by developing city district heating. Electricity from city district heating is a byproduct and is therefore much cheaper. The reason why Denmark, Sweden and Finland have the cheapest electricity in Europe—it is much cheaper than ours—is that much of their electricity is a by-product of heating. They have combined heat and power city district heating. Thanks to the enterprise of a private consortium and the East Midlands electricity hoard, a scheme is under way in Leicester. A similar scheme in Sheffield is supported by the Yorkshire board and the Eastern area board is also likely to develop schemes. Each of the schemes will produce only 100 or 200 MW of electricity but, as a by-product, that electricity will be very cheap—certainly cheaper than the electricity that the boards buy from the grid at present. If we develop more city district heating, we shall top up our electricity capacity as well as getting rid of our fuel poverty.

Other hon. Members may wish to contribute, and I therefore conclude by reminding the House that evidence is now coming forward to show that electricity can be produced more cheaply from all sorts of sources. We are now to give ourselves the opportunity to prove that by allowing competition. Because the area boards will now have the opportunity to shop around for their power supplies, instead of having to buy from one captive supplier, the CEGB, all sorts of exciting things will happen. Undoubtedly, the competition that will result will lead to a surge of new capacity, to lower-priced electricity and to a better deal for the consumer.