§ Norman BakerTo ask the Secretary of State for Trade and Industry for what reason electricity from combined heat and power sources fed into the National Grid is subject to the Renewables Obligation. [104554]
§ Mr. WilsonThe purpose of the Renewables Obligation is to secure a target level of our electricity supply from renewable energy. The obligation for each324W electricity supplier is calculated by applying a percentage to that electricity supplier's total electricity sales to customers in England and Wales during each Obligation period. The same arrangement applies in Scotland under their corresponding Obligation. Total electricity sales includes electricity from all sources, including both CHP and renewables, so as to avoid market distortions. However, electricity sold under licence exempt arrangements, including CHP, is not subject to the Obligation.