§ Mr. LlwydTo ask the Secretary of State for Trade and Industry if she will make a statement on the Ofgem review of NETA on small generators;'(a) profit and (b) output since the introduction of the scheme. [25630]
§ Mr. WilsonOfgem's report to DTI on the Review of the Initial Impact of NETA on Smaller Generators issued on 31 August 2001, indicated that prices for the export of power from smaller generators had reduced by around 17 per cent, since the introduction of NETA. Ofgem also found export volumes reduced by 44 per cent, compared to a year previously. Ofgem suggested the lower export prices for electricity were one factor, but that higher costs (especially gas prices) may also have contributed.
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. This consultation closed on 1 December 2001.
The Government's key proposals are, broadly,
To ensure imbalance prices are genuinely cost reflective; and ensure that effective consolidation services emerge.Responses to the Government's consultation on NETA and smaller generators showed widespread support for the proposal to form a Consolidation Working Group. On 20 December 2001, I announced the formation of the Consolidation Working Group to look urgently at obstacles to consolidation services under the new electricity trading arrangements (NETA). I have asked the Consolidation Working Group to provide a final report by 31 January 2001.
The Government are carefully considering responses on other proposals set out in their consultation document.