Examination of Witnesses (Questions 100-106)
MS ROBERTA
LUXBACHER AND
MR NICK
THOMAS
13 JUNE 2006
Q100 Chairman: You have got a pipeline
from Milford Haven, have you not?
Ms Luxbacher: Yes. It will connect
into the pipeline.
Q101 Chairman: How long is that pipeline?
Not long?
Mr Thomas: It is not a pipeline
which we are involved with, it is a pipeline being constructed
by National Grid to link up to our site.
Q102 Chairman: You have got no problem
with that either. What is rather fascinating about this whole
evidence session and written evidence is you almost have no problem
about anything. It is really quite extraordinary. When I read
these screaming horror headlines even in the Financial Times
about how dreadful everything is, how we have got no security
of gas supply and really Gazprom is something we have to think
about very, very carefully indeed, the view of Exxon is "No,
no, there is no problem with the security of gas supply as long
as we retain our open liberal markets full stop".
Ms Luxbacher: Yes.
Q103 Chairman: If everything is so
great, when there is so much more gas out there than everyone
thinks there is and there is no problem with supply, why do we
bother with nuclear at all, just have another dash for gas with
gas-powered stations everywhere, why not, there is no problem?
Ms Luxbacher: In building them,
again, we would say there should be a level playing field for
all of them. At the same time, we are advocates of diversity in
the supply mix.
Q104 Chairman: If it is all so wonderful
why do you need diversity, it comes at a great political and economic
cost to us?
Ms Luxbacher: That is true. I
think there are concerns about that and every energy source comes
with issues associated with it, and looking at that and balancing
that truly is a role of government. Our position is allowing a
level playing field for all these competing fields to compete,
create and maintain the marketplace in which they can.
Q105 Chairman: I feel from what you
have said today that if you maintain that level playing field
it is likely to lead-I am being neutral, I am not making a value
judgment here-to a very significant increase in gas-powered generation.
Ms Luxbacher: It depends how investors
in power generation have their outlooks in terms of the risks
that they are assessing, the planning support they have, their
outlooks for cost of fuels and how they look at that, and they
would probably look at a mix as they go on into the future.
Q106 Chairman: I am pleased to find
you so relaxed and happy about the market in which you operate.
If my colleagues have no further questions and there is nothing
else you want to add?
Ms Luxbacher: I think we have
covered most of it. We have talked about where we see the gas
business so, yes, I think we have.
Chairman: Do not panic, Mr Mainwaring!
Thank you very much indeed, we are very grateful.
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