§ Mr. StunellTo ask the President of the Board of Trade if she will exempt renewables generated within the NFFO arrangement from the fossil fuel levy. [43736]
§ Mr. BattleI have no plans to do so. Generators who generate electricity from renewable sources of energy under the non-fossil fuel obligation (NFFO) arrangements receive financial support through the scheme which makes the electricity they generate competitive with other leviable forms of generation. I see no need to give such generators further special treatment.
§ Mr. StunellTo ask the President of the Board of Trade what proposals she has to provide incentives for(a) suppliers and (b) consumers to develop the renewable energy industry in the United Kingdom. [43668]
§ Mr. BattleI expect to provide a further incentive to the development of the renewable energy industry in the United Kingdom when I make the fifth Order under the Non-Fossil Fuel Obligation (NFFO) later this year. The NFFO places an obligation on the Public Electricity Suppliers in England and Wales to obtain a specified amount of electricity from renewable sources, providing a protected market in which the industry can grow. Similar arrangements operate in Scotland and Norther Ireland.
More widely, this Government propose to undertake a new and strong drive to develop renewable energy sources in line with its manifesto commitment. To this end, DTI Ministers are reviewing policy, including considerations of what would be necessary and practicable to achieve 10 per cent. of UK electricity needs from renewable sources by the year 2010 and how renewables can make 229W an effective contribution to meeting requirements for future greenhouse gas reduction commitments. The outcome of that review will be announced later this year.