Select Committee on Trade and Industry Appendices to the Minutes of Evidence


Supplementary Memorandum by the Department of Trade and Industry

  Thank you for your letter about the Trade and Industry Committee's interest in the impact of NETA and the Climate Change Levy on industry. Our statisticians have provided the following figures.

  The Climate Change Levy (CCL) came into effect on 1 April 2001. Estimates indicate that, on average, the CCL increased the average prices of fuels to industry in the second quarter of 2001 by 13 per cent for coal, 8 per cent for electricity and 7 per cent for gas compared to the price excluding the levy.

  Average industrial gas prices (including the CCL) rose by 51 per cent in real terms in the year to the second quarter of 2001, reflecting increases in the price of gas in world markets and the impact of the CCL.

  Average industrial electricity prices (including the CCL) fell by 4 per cent in real terms in the year to the second quarter of 2001. The New Electricity Trading Arrangements (NETA) and plant divestments are thought to have contributed to this fall.

  I enclose for the Committee's information copies of the September 2001 edition of the DTI publication Quarterly Energy Prices and the accompanying press release[50], which give more detail. The next edition is due to be published at the end of December and is expected o show a similar picture on prices.

20 December 2001

50   not printed. Back

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