§ Baroness Miller of Hendonasked Her Majesty's Government:
How they intend to replace the 28 per cent of the United Kingdom's nuclear generating capacity which was available in 2000 and which will be shut down by 2014. [HL1258]
§ Lord Sainsbury of TurvilleThe Government believe that a market-based approach is the best way of delivering energy security, including through the210WA provision, maintenance and replacement of electricity generating capacity to meet demand, and that this approach is working well.
We expect that market signals will show when new build is both needed and economically viable.
Recent announcements show that the market is already thinking about the need for new build to meet future demand. For example, Centrica is proposing to build a new power station in south west England and E.ON recently announced plans for an upgrade of its generating facility on the Isle of Grain (from part-time oil-fired generation, to full-time gas-fired generation).
For the market to work effectively, market participants need to know that the Government will let it work. As set out in the energy White Paper, the Government will not intervene in the operation of the market except in extreme circumstances such as to avert, as a last resort, a potentially serious risk to safety.
However, through the Joint Energy Security of Supply Working Group (JESS), the DTI and Ofgem continually monitor developments in the market, and look for ways of helping the market to work effectively to deliver secure energy supplies. We also provide valuable information to market participants, which can help them to plan investment decisions.