Electricity Trading

Trade and Industry written question – answered on 31st October 2001.

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Photo of Paddy Tipping Paddy Tipping Labour, Sherwood

To ask the Secretary of State for Trade and Industry what assessment she has made of the part aggregation could play in addressing the position of small generators under new electricity trading arrangements.

Photo of Mr Brian Wilson Mr Brian Wilson Minister of State (Industry and Energy), Department of Trade and Industry

holding answer 29 October 2001

The impact of NETA on smaller generators, including renewables and CHP, was, and continues to be, of great concern. Following a request by the then Minister for Energy, Ofgem published on 31 August 2001 a report on the impact of NETA on smaller generators, based on the first two months of NETA operation, as well as a report on NETA operation generally.

Ofgem's report on the impact of NETA on smaller generators includes the finding that there is widespread concern that aggregation (or 'consolidation') services have yet to become fully operational.

The Government believe that effective aggregation services, which would group smaller generators into portfolios of predictable and less predictable generation, are one of the keys to addressing issues faced by smaller generators under NETA.

The Government will imminently be issuing proposals specifically aimed at addressing the concerns of the smaller generators community, including wind generation. These will include proposals on aggregation services under NETA and will set out the Government's views on aggregation services in detail.

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