HL Deb 03 November 2003 vol 654 cc79-80WA
Lord Jenkin of Roding

asked Her Majesty's Government:

What measures they are taking to restore confidence to the market in renewable obligation certificates so as to assist firms seeking finance for developing renewable electricity generation; and [HL4981]

Whether they will use some of the £100 million surplus funds raised through auctioning output from non-fossil fuel obligations contracts to fill the hole in the renewables obligation buy-out fund; and [HL4982]

When they expect to learn the outcome of their discussions with the Office of Gas and Electricity Markets aimed at seeking a resolution of the problems caused by the administration of the TXU Europe Group not meeting the deadline for paying the sum due to the renewables obligation buy-out fund; and [HL4956]

Whether they will allocate the £60 million earmarked in the Sustainable Energy Bill for promoting the use of energy from renewable sources to the renewables obligation buy-out fund, in order to restore confidence to the market in such certificates. [HL4958]

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)

The Government are consulting on proposals to mitigate the market impact of any future shortfall in the buy-out fund. These proposals have been developed in discussion with the Industry and with Ofgem.

The Government have no plans to use any of the £100 million non-fossil fuel obligation surplus to meet the shortfall in the renewables obligation buy-out-fund.

Likewise, use of any of the £60 million, which has been earmarked (from the NFFO surplus) in the Sustainable Energy Bill, to meet a shortfall in the buy-out fund is not permitted.