§ Mr. GibbTo ask the Secretary of State for Trade and Industry what change in electricity forward agreement wholesale generation prices has occurred since the intention to implement new electricity trading arrangements was announced in the October 1998 Energy White Paper. [146742]
§ Mrs. LiddellPrices in the electricity pool were around 2.5p/KWh in the period leading up to the White Paper. At that time trading in the electricity forward agreement (EFA) market was very limited, with no established price reporting. EFA prices and pool prices are not strictly comparable since the balance of risks associated with trading EFAs is different to that arising from exposure to pool prices.
627WPrice reporting of EFA markets emerged during 1999 as trading volumes rose. In mid-l999, one-year forward contracts to supply baseload electricity from October 1999 were trading at about 2.4p/KWh. Currently, prices to supply baseload electricity for one year from April 2001 are about 2.0p/KWh. This is a fall of around 17 per cent. in cash terms and 21 per cent. in real terms from 1999.