HC Deb 30 March 2000 vol 347 cc239-40W
32. Mr. Stunell

To ask the Secretary of State for Trade and Industry what measures he proposes to encourage micro-cogeneration of electricity within the UK. [115694]

Mrs. Liddell

The Chancellor announced his intention in the Pre-Budget Report of trebling support for energy efficiency measures under the climate change levy to around £150 million for 2001–02. This has been confirmed in the Budget.

Final decisions on use of the £50 million "energy efficiency" fund will be made in the 2000 spending review. The overall aim will be to encourage take-up of low-carbon technologies, including renewables, with an expanded programme of support.

The Budget has also confirmed, subject to obtaining EU State Aids clearance, that a system of 100 per cent, first year capital allowances will be introduced for certain eligible technologies—to include "good quality" CHP—from April 2001.

Micro-CHP giving energy saving benefits to consumers could also be eligible for Utilities' programmes to meet Energy Efficiency Standards of Performance Obligations.

The draft Strategy for CHP to 2010 is due to be published soon by my right hon. Friend the Minister for the Environment. It will invite comments on how we can achieve our CHP objectives, including developing the market for micro-CHP.