Electricity Generation (Hansard, 18 July 2001)

§ Mr. Alan Simpson
To ask the Secretary of State for Trade and Industry what assessment has been made of the impact of the new electricity trading arrangements on smaller companies in relation to their role as(a) suppliers and (b) generators. [4265]

§ Mr. Wilson
In late February, the Minister for Energy at the time asked the Office of Gas and Electricity Markets (Ofgem) to undertake a review of the impact of the new electricity trading arrangements (NETA) on smaller generators based on the first two months of NETA operation. Ofgem is due to publish its review by August.
In addition, Ofgem is producing regular assessments of how NETA is working, including the impact on smaller suppliers, for the Department of Trade and Industry. It is expected that many of the issues relating to smaller generators apply also to smaller suppliers.
264W
The Government will consult on any necessary action, including in relation to smaller suppliers, once Ofgem's review report is published.

§ Joan Ruddock
To ask the Secretary of State for Trade and Industry if revised estimates of emissions of carbon dioxide from the electricity sector have been made to reflect the changes in operational management of(a) combined heat and power and renewable electricity generating plant and (b) centralised power stations since the start of the new electricity trading arrangements; and if these changes are reflected in the Government's UK climate change strategy. [4753]

§ Mr. Wilson
CO₂ emissions from the electricity generation sector for the first full quarter under the new electricity trading arrangements (NETA) are not yet available. Government projections of CO₂ emissions were last published in November 2000 as Energy Paper 68.¹ These, along with the Government's climate change strategy, are long-term by their nature and we see no reason to revise either at this stage. We do not, as yet, have sufficient information on CHP, renewable or indeed any generation to assess resulting changes in the electricity sector fully. In any event, we are still in the early days of NETA and generator behaviour in response to the new arrangements is unlikely to have settled down. There have been particular issues regarding the impact of NETA on renewables and CHP generation, which Ofgem will shortly be publishing a report on. ¹ Energy Projections for the UK, 2000–2020—Energy Paper 68—published November 2000.

§ Joan Ruddock
To ask the Secretary of State for Trade and Industry when she intends to implement the proposals set out in February in the DTI Responses to Consultations and Final Proposals document concerning exemptions from the requirement for a licence to generate, distribute or supply electricity. [4466]

§ Mr. Wilson
The Government plan that an order implementing these proposals should be made in the next few weeks.