Energy reform attacked as gas ban stays
Friday 09 October 1998
The reform will also involve the abolition of the electricity pool and its replacement by new trading arrangements coupled with disposals of coal-fired power stations by the big generators.
In a White Paper published yesterday, Mr Mandelson pledged that the gas moratorium would be "short-term, temporary and aimed specifically at protecting diversity and security of supply". He would not put a date on when it would be lifted.
Publication of the review paves the way for National Power, PowerGen and Eastern to sign new long-term supply deals with the country's biggest coal producer, RJB Mining.
Mr Mandelson said that without the moratorium, coal's share of the market would have shrunk from 30 per cent now to 10 per cent in 2003, leaving Britain dependent on more expensive gas-fired stations for up to 60 per cent of its electricity.
But he denied that the Government had guaranteed a market for coal, insisting that the industry's future lay in its own hands.
The gas ban will block the development of 36 projects involving 12,000 megawatts of capacity - enough to displace 30 million tonnes of coal.
Ralph Hodge, the chairman of Enron Europe, one of the world's biggest gas station developers, said: "Consumers, the economy and the environment will be the losers, with higher-than-needed electricity costs, significant job losses and much higher emissions of greenhouse gases."
The Confederation of British Industry also criticised the lack of any set timescale for lifting the gas ban. Friends of the Earth said that the White Paper "does not amount to a sustainable energy policy for the future".
But the Confederation of United Kingdom Coal Producers welcomed the energy review, saying it would level the playing field and mean lower prices. The Electricity Association also broadly supported the decision to introduce new competitive trading arrangements.
PowerGen has agreed to sell 4,000 megawatts of capacity, and National Power said it expected to be able to agree acceptable disposal terms. The regulator, Professor Stephen Littlechild, has recommended it sell 6,000 megawatts - equivalent to three big stations.
- 1 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 2 Perez Hilton apologises for Jennifer Lawrence naked photo leak
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Mexican woman becomes world’s 'oldest person' at 127
- 5 Jennifer Lawrence 'naked sex video' will be leaked threatens 4Chan celebrity photo hacker
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: SQL Impl...
£85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...
£40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...
£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...