Select Committee on Environmental Audit Appendices to the Minutes of Evidence


Letter to the Clerk of the Committee from Chris Bolt, Group Director, Lattice Group

  The Lattice Group welcomes the opportunity to submit a short note in response to the House of Commons Environmental Audit Committee inquiry into "Sustainable Energy and the PIU Review".

  The Lattice Group plc is one of the three successor companies to British Gas. Our largest subsidiary—Transco—owns and operates the vast majority of Britain's gas transportation infrastructure. Other Group subsidiaries, such as Advantica and Lattice Energy Services, specialise in providing technology and engineering solutions to the gas industry and in installing state-of-the-art gas fired combined heat and power (CHP) generating systems to large energy consumers. Lattice Energy Services is also spearheading the development of a Compressed Natural Gas filling station network, to support commercial truck fleets moving to this more environmentally friendly fuel.

  The Lattice Group welcomes moves to a more environmentally sustainable energy mix through the development of renewable energy sources and embedded or distributed generation. In the short and medium term, gas will play a very important role in this process—particularly in the development of distributed generation such as efficient domestic-CHP systems, due to its favourable environmental characteristics compared to other fossil fuels.

  We would also point out that the growth of distributed generation will have significant implications for the gas as well as electricity distribution network. Ensuring that there are sufficient incentives for Transco to make the necessary investments in the infrastructure network to accommodate developments such as these is an issue on which Lattice is in constant dialogue with the industry regulator, Ofgem, and the Government through the Department of Trade & Industry.

March 2002

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