Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department plans to create a new independent system operator to remove any potential conflict of interest between National Grid and its electricity balancing and management responsibilities.
Answered by Jesse Norman
There is a case for greater independence for the system operator to promote more competition and flexibility in our electricity system. We are working alongside National Grid and Ofgem to this end, so that the electricity system continues to be operated in the best interest of consumers.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to mitigate any advantage which fossil fuel generated electricity imported via interconnector has over domestic electricity generation on which carbon price floor rates are applied.
Answered by Jesse Norman
Whatever the source, and wherever it is from, we import electricity when the cost is lower than here in the UK, driving down consumer bills. Ofgem’s analysis of proposed interconnector projects shows that the carbon price floor is not the determinate of whether the projects are in the interests of UK consumers.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what progress has been made on the status of the proposed Trafford combined cycle gas turbine plant.
Answered by Jesse Norman
Following representations from the developer, as provided for under the Capacity Market legislation, an extension of 60 working days to 19 December has been granted for them to achieve the requirements of the Capacity Market progress milestone. The Secretary of State’s discretionary powers to extend a compliance period are designed to recognise situations where a little additional time can help a provider achieve a milestone, to the benefit of our security of supply.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to remove any potential conflict of interest between National Grid and its electricity balancing and management responsibilities.
Answered by Jesse Norman
There is a case for greater independence for the system operator to promote more competition and flexibility in our electricity system. We are working alongside National Grid and Ofgem to this end, so that the electricity system continues to be operated in the best interest of consumers.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what discussions she has had with the European Commission on the application of EU state aid rules related to the provision of (a) Supplementary Balancing Reserve and (b) other Black Start ancillary support contracts provided by the National Grid to Eggborough, Fiddler's Ferry and Drax power plants; and if she will make a statement.
Answered by Amber Rudd
The Supplementary Balancing Reserve and Black Start services are procured directly by the System Operator, National Grid and the Government has no involvement in the tendering, or award of Supplementary Balancing Reserve or Black Start contracts. As such DECC has not discussed these with the European Commission in relation to their application to State Aid.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what discussions she has had with the European Commission on EU state aid related to UK interconnector operations.
Answered by Amber Rudd
All interconnector projects apply to Ofgem to operate under a regulatory regime. Their regulation is compatible with EU rules and there are no state aid issues
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what assessment her Department has made of the effect of the expansion of new electricity interconnectors on (a) the capacity market auction price and (b) long-term investment in gas-fired electricity generation.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
We are confident that the Capacity Market is the right tool to bring forward new capacity including gas as it is needed. The participation of interconnectors in the Capacity Auction is expected to increase competition among capacity providers in the auction helping to take clearing prices as low as possible for consumers. The security of supply contribution that interconnection makes is assessed annually, based on detailed market modelling to determine anticipated electricity flows from connected markets at times of GB system stress. The government published an impact assessment last year on the inclusion of interconnectors in the Capacity Market which is available here:
http://www.legislation.gov.uk/ukia/2015/187/pdfs/ukia_20150187_en.pdf.
Both new gas and new interconnectors are likely to be important parts of the long-term investment we need in new capacity to ensure energy supply.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what assessment her Department has made of the effect of the National Grid's (a) Supplementary Balancing Reserve and (b) other Black Start ancillary support contracts to coal plants on the capacity market auction price.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
DECC does not have access to all the commercially confidential details of National Grid procurements such as ancillary support and Supplementary Balancing Reserve (SBR) contracts.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what discussions she has had with (a) Big Six and (b) other combined cycle gas turbine generators on the potential effect of an expansion of electricity interconnectors on (i) the capacity market and (ii) long-term investment in gas-fired electricity generation.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Ministers and officials routinely meet with all stakeholders including the vertically integrated energy companies, independent generators and other capacity providers to discuss the energy market, their views on the Capacity Market and new interconnection as well as prospects for any planned investment in new gas power stations.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the effects of retention of Eggborough and Fiddler's Ferry coal plants on investment in new combined cycle gas turbine plants.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Security of supply is our top priority and we monitor all market developments closely. In the shorter term, extending the operation of existing plant can provide important capacity whilst new capacity is built.
We are confident that the Capacity Market is the right mechanism to bring forward new capacity as older, less efficient plants close. Industry and investors made clear during our recent review their confidence in the Capacity Market. Our plan to buy more capacity and buy earlier will improve the chances of new capacity, particularly gas, clearing in future auctions.