Electricity (Hansard, 17 September 2004)

§ Mr. Peter Duncan
To ask the Secretary of State for Trade and Industry if she will make a statement on her policy towards locational pricing structures for electricity transmission. [188681]

§ Mr. Mike O'Brien
The Government, with Ofgem, consulted on the criteria that should govern the transmission charging methodology under the British Electricity Trading and Transmission Arrangements (BETTA) due to come into affect in April 2005. http://www.dti.gov.uk/energy/consultations/transcharging_doc:pdf
It is now for the National Grid Company as GB System Operator to devise a suitable charging methodology in consultation with the industry that facilitates effective competition and, as far as practicable, is reflective of costs. It is then for the industry regulator, Ofgem, to approve this methodology.

§ Mr. Wiggin
To ask the Secretary of State for Trade and Industry under what regulations Welsh Water is barred from generating electricity. [188941]

§ Mr. Mike O'Brien
There is nothing in the Electricity Act 1989, as amended, which would bar Welsh Water from generating electricity. Section 36 of the Electricity Act 1989 details what consents are required to construct, operate or extend a generating station. Generating electricity is a licensable activity and standard licence conditions have to be met, unless exempt under the Electricity (Class Exemptions from the requirement for a licence) Order 2001. It is the regulator's office, the Office of Gas and Electricity Markets (Ofgem) which grants licences.

§ Mr. Tynan
To ask the Secretary of State for Trade and Industry what impact the recent increase in the wholesale price of gas has had on predictions for the costs of various forms of electricity generation as laid out in the energy White Paper. [189043]

§ Mr. Mike O'Brien
The recent increase in the wholesale price of gas, if sustained, will impact on the cost of gas-fired generation as against other forms of generation. Some of these other forms of generation, including low carbon options, would look relatively more attractive compared with gas-fired generation