§ Malcolm BruceTo ask the Secretary of State for Trade and Industry what price control mechanisms will be necessary to ensure the Government's renewable energy targets for 2010 are met. [122575]
§ Mr. TimmsOfgem sets price controls for all transmission and distribution companies, usually every five years. A review is currently in progress to reset the price controls on electricity distribution businesses from April 2005.
The price controls for the two Scottish transmission licensees are due to be reviewed from April 2005, and NGC's electricity transmission price control is due for review from April 2006. These price controls will need to encourage the investment in the transmission and distrilbution infrastructure necessary to achieve the Government's 10 per cent. renewable energy target by 2010.
§ Malcolm BruceTo ask the Secretary of State for Trade and Industry what improvements to the National Grid will need to be made to ensure the Government meets its renewable energy target of 10 per cent. by 2010; and how these improvements will be financed. [122576]
§ Mr. TimmsImprovements will have to be made to the transmission grid by all of the Transmission Asset Owners (National Grid Transco, Scottish Power, and Scottish & Southern) for new renewable generation stations. The Transmission Issues Working Report published in June 2003 estimated the costs of these works.
Planning works for the initial upgrades have been started by both Scottish Power and Scottish & Southern, following agreements made with Ofgem earlier this year. This was in response to requests from 515W renewable energy generators (wind farms) to be connected to the transmission system. These upgrades will be treated as additions to the Regulatory Asset Base, with appropriate charges made to the generators according to the connection agreements offered.
The Transmission Issues Working Group will continue to monitor the progress of this work.