Energy: Generation Capacity

House of Lords written question – answered on 1st April 2008.

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Photo of Lord Taylor of Holbeach Lord Taylor of Holbeach Shadow Minister, Environment, Food & Rural Affairs

asked Her Majesty's Government:

Further to the Statement by Lord Jones of Birmingham on 10 January (Official Report, cols. 988—92) on energy policy, how they will ensure that power companies invest in a sufficient number of new power stations to replace one-third of the current generating capacity while using technologies that will meet their carbon emissions targets.

Photo of Lord Bach Lord Bach Government Whip, Government Whip

The Government have put in place a regulatory framework within which energy companies have every commercial incentive to ensure that they have sufficient generating capacity to meet the electricity demand of their customers. In addition, the EU Emissions Trading Scheme provides a strong commercial incentive to minimise carbon emissions from power generation as well as from other industrial activities covered by the scheme.

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