UK minister, Ofgem at odds over green power costs
Date: 07-Dec-01
Country: UK
Earlier this week, UK energy regulator Callum McCarthy warned plans to build dozens of wind farms and small hydroelectric schemes in remote parts of Scotland would be poor value for money.
"It is perfectly proper for Callum McCarthy to be cost conscious as the founding father of NETA (new electricity trading arrangements)," Wilson told a British Nuclear Industry Forum meeting.
"Equally it is necessary for Ofgem and the government to safeguard against an over-emphasis on what is the cheapest (form of generation)," he added.
While Ofgem's focus has been on bringing down electricity bills, the government is keen to encourage green power which has higher costs than traditionally generated power.
Ofgem introduced NETA in March which led to a drop in electricity prices but also complaints from small and renewable generators that they were being penalised by the new system.
Wilson agreed to fund studies into a new underwater cable to link Scottish renewable projects to the national grid.
The minister told the forum the government would take a close look at the regulator's policies.
"Ofgem's social and environment objectives...need to be spelled out in more detail," he said, adding the work was urgent.
The government has commissioned a root and branch review of Britain's energy policy and expects to receive the report by the end of the year.
The government has a target of raising green power output to 10 percent of electricity generation by 2010 to meet Britain's commitment to cut its emissions of greenhouse gases, said by many scientists to be a major contributor to global warmimg.
Britain currently generates less than three percent of its power from green sources.