§ Mr. Nigel EvansTo ask the President of the Board of Trade when he plans to embark on further consultations on the proposals to allow large users to bypass the electricity pool outlined in the recent White Paper, "Prospects for Coal".
§ Mr. EggarMy officials are now writing to holders of electricity licences, the Director General of Electricity Supply, representatives of consumers, the electricity pool and others to seek their views on the circumstances in which consumers might contract directly with generators outside the electricity pool.
At present, the majority of customers who use electricity generated on site do not use the integrated electricity system and therefore do not pay pool charges. Additionally, if no supply licence is involved no fossil fuel levy is paid.
The Government are considering whether it would be appropriate to extend these arrangements to consumers 5W who pair themselves with generating sets which are not located on site. These consumers would pay charges according to the benefits or services they take from the integrated system.
The Government are also considering possible relaxation of the current supply exemption class where electricity is generated and consumed on site.
I am placing copies of the consultation documents in the Library of the House.