HC Deb 13 November 2001 vol 374 cc657-9W
Mr. Stunell

To ask the Secretary of State for Trade and Industry what recent meetings she has had with the Regulator to discuss the impact of New electricity trading arrangements on(a) the Combined heat and power sector and (b) the renewable sources of energy sector; and if she will make a statement. [12661]

Mr. Wilson

I have had numerous meetings with the Regulator to discuss the impact of NETA on CHP and renewables, most recently on 25 September 2001. My right hon. Friend, the Secretary of State for Trade and Industry will be meeting the Regulator on Thursday 15 November 2001 to discuss this subject, among other matters.

Mr. Stunell

To ask the Secretary of State for Trade and Industry what representations she has received from the British Wind Energy Association regarding the impact of NETA on trading in renewable energy; and if she will make a statement. [12660]

Mr. Wilson

My Department received representations from the British Wind Energy Association regarding the impact of NETA on trading in renewable energy as part of BWEA' s response to the DTI Preliminary Consultation on the Renewables Obligation of October 2000. In addition, my Department has had numerous representations from industry on this issue, including the renewables and wind sectors, for example the Confederation of Renewable Energy Associations.

On 1 November, I issued a consultation document in response to Ofgem's reports 'The New Electricity Trading Arrangements—Review of the First Three Months' and `Report to the DTI on the Review of the Initial Impact of NETA on Smaller Generators' of 31 August 2001. I welcome views and representations from all industry bodies. I hope that the British Wind Energy Association will take this opportunity to respond to our consultation. The consultation document can be accessed at www.dti.gov.uk/consultations/.

Mr. Stunell

To ask the Secretary of State for Trade and Industry what representations she has received from the(a) Combined Heat and Power Association, (b) British Association for Biofuels and Oils, (c) British Photovoltanic Association, (d) British Hydropower Association and (e) Solar Trade Association Limited regarding the impact of NETA; and if she will make a statement. [12673]

Mr. Wilson

I have received numerous representations from the Combined Heat and Power Association on the impact of NETA, most recently at a meeting on 20 September 2001.

I have received no representations from the British Association for Biofuels and Oils, the British Photovoltanic Association, the British Hydropower Association, or the Solar Trade Association Limited.

I have, however, had numerous representations from industry bodies regarding the impact of NETA.

On 1 November, I issued a consultation document in response to Ofgem's reports 'The New Electricity Trading Arrangements—Review of the First Three Months' and `Report to the DTI on the Review of the Initial Impact of NETA on Smaller Generators' of 31 August 2001. I welcome views and representations from all industry bodies. I hope that the above associations will take the opportunity to respond to our consultation. The consultation document can be accessed at www.dti.gov.uk/ consultations/.

Mr. Gareth R. Thomas

To ask the Secretary of State for Trade and Industry if she will take steps to encourage companies to provide a consolidation service within NETA for small generators; and if she will make a statement. [12732]

Mr. Wilson

On 1 November 2001, I issued a consultation document in response to Ofgem's reports "The New Electricity Trading Arrangements—Review of the First Three Months" and "Report to the DTI on the Review of the Initial Impact of NETA on Smaller Generators" of 31 August 2001.

The Government recognise the issues faced by smaller generators under NETA. The Government's key proposals are, broadly:

  • To ensure imbalance prices are genuinely cost reflective; and
  • To ensure that effective consolidation services emerge.

The Government are also inviting views on other proposals put forward by industry.

The Government believe consolidation services are vital in order to establish and foster smaller generation plant. While consolidation services are now starting to emerge in the market, the Government have proposed establishing a working group of smaller generators, the National Grid Company, BSC (Balancing and Settlement Code) participants, Ofgem, the DTI and DEFRA to look urgently at possible structural or regulatory obstacles to consolidation, including the likely time scale on which competitive consolidation services will emerge. The Government will ask this group to provide an interim report by 24 December 2001, and a final report by 31 January 2001.

The consultation document can be accessed at www.dti.gov.uk/consultations/.