§ Mr. VazTo ask the Secretary of State for Energy if he will make a statement on the benefits of the combined heat and power schemes.
§ Mr. Michael SpicerWhere it is economic, combined heat and power technology produces net benefits which stem from its higher fuel efficiencies compared with conventional plant. There are likely to be environmental benefits as a result of the reduction in the amount of fuel needed to meet a given demand for heat and power compared with using separate technologies. It is in recognition of these benefits that the Government have supported and promoted the development of economic CHP schemes. They have introduced measures in the Electricity Bill to enable CHP to compete with other established electricity suppliers. For example, licensed CHP operators will have new powers to break streets to lay electricity lines and heat mains. The Bill also enables the Director of Electricity Supply to monitor and collect information on the use and application of CHP. Output from CHP schemes based on non-fossil fuels such as refuse or landfill gas will count towards the non-fossil fuel obligation.
§ Mr. VazTo ask the Secretary of State for Energy what was the level of cash guarantee demanded by the East Midlands electricity board in respect of the combined heat and power scheme in Leicester.
§ Mr. Michael SpicerThis is a commercial matter between the East Midlands electricity board and Leicester Energy Ltd.