§ Mr. ColmanTo ask the Secretary of State for Environment, Food and Rural Affairs when the exemption for combined heat and power from the climate change levy, as announced by the Chancellor in his Budget, will become operational; and whether the value of the exemption will be realised by the qualifying combined heat and power generator. [67602]
§ Mr. MeacherThe introduction of the full exemption of CHP from the climate change levy is subject to EC State Aid approval. We hope to have this approval by the end of November. Whether the qualifying CHP generator supplements its price by the full value of the levy exemption or the licensed supplier reduces the price he pays by sharing some of it, is a commercial matter. Either way, the effect should be to make the onward sale of good quality CHP electricity more attractive.