§ Mr. KeyTo ask the Secretary of State for Trade and Industry what progress she has made on reaching a settlement with the energy regulator on the viability of combined heat and power projects under the new electricity trading arrangements. [10648]
§ Mr. Wilson[holding answer 30 October 2001]: Ofgem published on 31 August their review of the impact of NETA on smaller generators. The report covered the first two months since the implementation of the new electricity arrangements (NETA). The Government will be issuing a consultation paper in response to the Ofgem report on smaller generators imminently which contains proposals aimed at addressing the issues surrounding NETA that have been raised by the smaller generator community, including the CHP generators.
As well as consideration of the impact of NETA, the Department for the Environment, Food and Rural Affairs will also be publishing wider proposals in the form of a CHP strategy in the coming months.
§ Mr. KeyTo ask the Secretary of State for Trade and Industry what representations she has received regarding the new electricity trading arrangements. [10647]
§ Mr. Wilson[holding answer 30 October 2001]: In October 1997, the then Minister for Industry, Energy and Science proposed that the electricity pool system be reviewed. In the review and the subsequent development of regulations to implement new electricity trading arrangements (NETA), there were a number of consultations undertaken by my Department and Ofgem. During the development and implementation of NETA, numerous representations were received from a range of 705W organisations, in the form of letters, responses to consultation exercises and in meetings. Since NETA went live in March of this year, the DTI and Ofgem have consulted on further refinements to the trading arrangements in light of experience of the new system. This has prompted further representations from interested parties.
§ Paddy TippingTo ask the Secretary of State for Trade and Industry when she will publish her consultation document responding to the Ofgem report on the effects of new electricity trading arrangements on small generators. [10428]
§ Mr. Wilson[holding answer 29 October 2001]: The Government will be publishing their consultation document responding to Ofgem's reports on the operation of NETA and the initial impact of NETA on smaller generators in the near future.
§ Paddy TippingTo ask the Secretary of State for Trade and Industry what assessment she has made of the part aggregation could play in addressing the position of small generators under new electricity trading arrangements. [10429]
§ Mr. Wilson[holding answer 29 October 2001]: The impact of NETA on smaller generators, including renewables and CHP, was, and continues to be, of great concern. Following a request by the then Minister for Energy, Ofgem published on 31 August 2001 a report on the impact of NETA on smaller generators, based on the first two months of NETA operation, as well as a report on NETA operation generally.
Ofgem's report on the impact of NETA on smaller generators includes the finding that there is widespread concern that aggregation (or 'consolidation') services have yet to become fully operational.
The Government believe that effective aggregation services, which would group smaller generators into portfolios of predictable and less predictable generation, are one of the keys to addressing issues faced by smaller generators under NETA.
The Government will imminently be issuing proposals specifically aimed at addressing the concerns of the smaller generators community, including wind generation. These will include proposals on aggregation services under NETA and will set out the Government's views on aggregation services in detail.