FDF Response to HM Treasury Consultation on Carbon price floor
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January 2011
On 16th December 2010 DECC published a consultation on Electricity Market
Reform. As part of this, HM Treasury published a parallel consultation on
Carbon Floor
Price aimed at providing long term certainty to carbon prices to support
investment in low-carbon electricity generation.
FDF is supportive of the long term aims of the Electricity Market Reform Project
to deliver a low carbon electricity market and security of supply whilst at the
same time being affordable to consumers.
In summary our two main points are:
- The cumulative cost impact of climate change and energy policies need to be
assessed to ensure the continued competitivity of UK manufacturing industry in
global markets. The impact of the Carbon Price Support is only one of number of
cost
impacts that need to be assessed.
- The Carbon Price Support should not be applied to fuel used in Combined Heat
and Power plant. To do so will potentially close existing plant, prevent new
plan
coming on line and increase emissions of greenhouse gases.
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