§ Helen ClarkTo ask the Secretary of State for Trade and Industry what measures the Government will take to ensure that the new electricity trading arrangements do not penalise Combined heat and power and renewable generators. [7056]
§ Mr. WilsonIn advance of going live, a number of smaller generators as well as the Combined Heat and Power Association (CHPA) and the Association of Electricity Producers (AEP) expressed concern that the new electricity trading arrangements (NETA) would severely disadvantage them. In view of this, on 21 February, the then Minister for Energy, asked Ofgem to undertake a review of the impact of NETA on smaller generators based on its first two months of live operation.
On 31 August, Ofgem published their report to the DTI on the "Review of the Initial Impact of NETA on Smaller Generators", as well as a report "The New Electricity Trading Arrangements—Review of the First Three Months".
The Government believe that the key findings in Ofgem's report on the first three months of NETA are encouraging and indicate that, overall, NETA has created a more competitive market.
The Government have reviewed and considered Ofgem's reports, as well as views put forward by industry, both in the course of Ofgem's review, and to DTI. In the light of these, I will be issuing a consultation document.