HC Deb 17 December 2002 vol 396 c736W
Mr. Blunt

To ask the Secretary of State for Trade and Industry for what reason Of gem arranged for National Grid Transco to purchase 25 per cent. of the output of the DRAX power station; whether(a) she and (b) her officials were consulted about these arrangements; and if she will make a statement. [87109]

Mr. Wilson

I understand that as part of its contingency planning associated with the financial difficulties experienced by TXU Energy, NGC assessed the risk to security of supply in the very short term of a significant volume of generation becoming unavailable to the electricity system.

On this occasion, NGC considered that it was appropriate to enter into contractual arrangements to ensure that there was sufficient contingency reserve. I understand that. NGC has explained its actions at its recent Operational Forum for market participants.