HC Deb 14 September 2004 vol 424 cc1536-7W
Mr. Drew

To ask the Secretary of State for Trade and Industry if she will make a statement on the timescale for the consultation on the renewables obligation. [188419]

Mr. Mike O'Brien

There are two separate consultations on the Renewables Operation under way at present.

First, the Government launched a consultation on the terms of reference for the Review of the Renewables Obligation which will take place in 2005/06. The review will address the effectiveness of the Obligation to date, the future profile of the Obligation, its working arrangements and the transition to market over time for renewables technologies including taking account of support under the Obligation and the Emissions Trading Scheme. The consultation period on the terms of reference ends on 30 September. A preliminary consultation is planned for early next year followed by a statutory consultation of all stakeholders later in 2005 with a view to any necessary changes that can be made by secondary legislation taking effect from 1 April 2006.

In addition, on 8 September the Government published a separate consultation paper on a number of limited changes to the Renewables Obligation to strengthen the development of electricity generation capacity using renewable energy sources in the UK. This is a more limited consultation concerning measures to: extend the profile of the Obligation to 2015/16; allow tradability between Northern Ireland Renewables Obligation Certificates (NIROCs) and GB ROCs; introduce measures that will further secure the buy-out fund in the event of a shortfall occurring; consider the introduction of a single recycling mechanism for the separate buy-out funds; introduce more flexibility for small generators.

The period for this consultation ends on 1 December, and the Government plans to make any necessary changes to take effect from 1 April 2005.

Mr. Drew

To ask the Secretary of State for Trade and Industry whether the calculation of the effectiveness of renewable obligations will include the operation of renewable obligation certificates. [188420]

Mr. Mike O'Brien

Yes. The operation of Renewables Obligation Certificates (ROCs) are an important element of the Renewables Obligation. The forthcoming review of the Renewables Obligation in 2005/06 will include, among other things, an assessment of the effectiveness of the operation of the ROCs market.

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