Select Committee on Northern Ireland Affairs Appendices to the Minutes of Evidence


Memorandum submitted by the Electricity Association

  The Electricity Association is the trade body that represents the major electricity companies in the United Kingdom of Great Britain and Northern Ireland. Its membership includes electricity generating companies in Northern Ireland.

  The Electricity Association would like to remind the committee that the Aggregates Levy applies to all crushed rock, sand and gravel, although there is the possibility of relief for materials used for prescribed purposes. A common use for crushed rock (limestone) in electricity generation is as a chemical feedstock for Flue Gas Desulphurisation (FGD) systems, ie the removal of sulphur from flue gasses for environmental reasons. Since the reason for the introduction of the Aggregates Levy was to protect the environment, it does not seem consistent for it to be applied to another process designed to protect the environment (FGD).

  If not given relief, the Aggregates Levy will also raise the cost of electricity fitted with this type of FGD system. Potentially this could disadvantage Northern Ireland generators, some of which are planning to fit FGD systems, with respect to generators located in the Republic of Ireland, there being electrical interconnection between the two states. It is therefore important that such use of limestone be prescribed for relief from the Aggregates Levy in Northern Ireland.

24 October 2001

previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2001
Prepared 11 December 2001