No mandatory cost control mechanism for co-firing/conversion

Published on Friday, 05 October 2012 14:29
Posted by Vicki Mitchem

The RO decision document announced DECC's intention to consult on a mandatory requirement to pre-register units for enhanced co-firing and biomass conversion. This was to avoid possible adverse effects on the Obligation due to uncertainty over how much generation would occur within these bands.

DECC has today published a document saying that they have decided instead to introduce a 'voluntary cost control mechanism'. DECC will write to generators to ask them for information on their intentions over the forthcoming Obligation period, which will then inform the level of the Obligation.

The document stresses that this is a voluntary process and that;

'there will be no explicit link to triggered reviews of support over and above Government's pre-existing review powers. Nor do we propose to link our grandfathering policy to meeting the request for pre-notification'.

The document also sets out further details on how the government intends grandfathering to work for these bands. On first reading, these appear to be pragmatic and allow flexibility between the various bands, but we would welcome members' comments.

Source: ©REA

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