HC Deb 08 January 2002 vol 377 cc746-7W
Mr. Sayeed

To ask the Secretary of State for Environment, Food and Rural Affairs how much has been spent by the Government in 2001 on encouraging CHP schemes. [22595]

Mr. Meacher

The Government introduced a number of measures in April 2001 to help encourage CHP schemes, including:

  • the exemption of good quality CHP used on site or sold to known end users from the climate change levy,
  • eligibility of good quality CHP for enhanced capital allowances on investment in energy saving technologies, and
  • exemption from business rates of the electricity generating plant and machinery in CHP schemes.

The value of each of these to CHP operators will depend on their uptake, which it is too early to estimate. In addition, the Government funds a number of other activities that promote CHP with a combined estimated cost in 2001–02 of around £1.5 million. These include the CHP club and the CHP quality assurance programme.

Mr. Sayeed

To ask the Secretary of State for Environment, Food and Rural Affairs what progress the Government have made towards reaching its CHP target of 10,000 MW by 2010. [22618]

Mr. Meacher

By the end of the year 2000 there were 1,556 CHP schemes in the UK with a combined good quality CHP capacity of 4,632 MW, producing 6 per cent. of the UK's electricity requirements and delivering an estimated 3.9 MtC of carbon savings annually. The UK's current good quality CHP capacity is estimated to be around 4,700 MW.

Mr. Sayeed

To ask the Secretary of State for Environment, Food and Rural Affairs what recent representations the Government have received from industries on employment levels in the CHP sector. [22592]

Mr. Meacher

The Combined Heat and Power Association, and one of their members, recently came in to talk to me about the state of the CHP industry, including job losses and threats to jobs. In addition, a number of representations were made to me by senior members of the industry when I attended the recent CHPA annual conference. I am also aware that the Minister for Industry and Energy has received similar representations from the industry.

Mr. Sayeed

To ask the Secretary of State for Environment, Food and Rural Affairs for each year since the introduction of NETA, by what percentage the export of power from CHP has changed compared with the preceding year. [22617]

Mr. Meacher

The new electricity trading arrangements, which are a matter for the Secretary of State for Trade and Industry and Ofgem, were introduced on 27 March last year, and it is therefore too early to put a figure on the percentage of power from CHP compared with the preceding year. However, the recent report by the Office of Gas and Electricity Markets, "Report to DTI on the Review of the Initial Impact of NETA on Smaller Generators", issued in August of this year, indicates that the export of power from CHP has reduced by around 60 per cent.

Mr. Sayeed

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact on the viability of CHP of reducing the level of the climate change levy on CHP. [22596]

Mr. Andrew Smith

I have been asked to reply.

The viability of combined heat and power is dependent on many factors—the relative prices of gas and electricity being the most important of those factors. However, as announced in the pre-Budget report, subject to legal and other constraints, the Government will consider the environmental case for providing more favourable treatment for CHP within the climate change levy.