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Energy Supply

Energy and Climate Change written question – answered on 19th June 2012.

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Photo of Tom Greatrex Tom Greatrex Shadow Minister (Energy)

To ask the Secretary of State for Energy and Climate Change with reference to page 3, draft Energy Bill Annex A, entitled Institutional Framework: Government, the system operator and Ofgem, what estimate he has made of the likely administration cost to be incurred by the National Grid as a result of its role as a Contracts for Difference system operator.

Photo of Charles Hendry Charles Hendry The Minister of State, Department of Energy and Climate Change

The Department continues to work with both Ofgem and National Grid to ensure that staff, resources and infrastructure are in place for introduction of the reforms in 2014, a key objective of which is value for money for consumers.

The precise role of the system operator, National Grid, in delivering Electricity Market Reform will be defined as the Department designs the detail of the EMR mechanisms. There is therefore a degree of uncertainty attached to current cost estimates while, for instance, IT costs are still to be determined.

For this reason, and to ensure commercial confidentiality while agreement over costs is reached, we are not currently in a position to make such estimates public.

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