Electricity Generation

Department for Energy and Climate Change written question – answered on 8th December 2014.

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Photo of John Spellar John Spellar Shadow Minister (Foreign and Commonwealth Affairs)

To ask the Secretary of State for Energy and Climate Change, how much his Department has budgeted for payments to energy companies to maintain spare stand-by electricity generation capacity for winter 2014.

Photo of Matthew Hancock Matthew Hancock Minister of State (Department for Business, Innovation and Skills), Minister of State for Portsmouth, The Minister of State, Department of Energy and Climate Change

National Grid is responsible for procuring New Balancing Services to provide reserve capacity. Procurement is subject to a methodology approved by Ofgem.

National Grid announced in October that it has procured an additional 1.1GW of reserve capacity for this winter. This will cost less than £1 per household and will increase capacity margins from around 4% to over 6%.

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