UK small generators not pooling output - Ofgem
Date: 04-Sep-01
Country: UK
In the run up to NETA's launch in March Ofgem promoted consolidation as a way to help small generators operate under the new arrangements.
Small generators such as energy-efficient combined heat and power plants are crucial to the government's push to reduce emissions of greenhouse gases.
"Concerns have been raised by small generators about consolidators," said Steve Smith, Ofgem's director of trading arrangements.
"There are concerns about the speed at which they have become available," he told Reuters.
Citing reports from small generators, he said only one company was actively working as a consolidator.
Industry sources said Concert Energy, a unit of UK utility Innogy , was the most active consolidator.
Seven companies are listed on Ofgem's website as potential consolidators.
Graham Meeks of the Combined Heat and Power Association (CHPA), an industry group representing small generators, said Ofgem had made consolidation too complex for it to work.
"Consolidation facilities proposed by Ofgem are incredibly complicated and are not proving workable," he said.
Earlier, Ofgem said sliding electricity prices under NETA meant the government may need to give more support to renewable energy schemes which are key to the government's bid to slash emissions of greenhouse gases.
