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Renewable Energy

Mr. Bellingham: To ask the Secretary of State for Trade and Industry what plans she has to change the targets for the purchase of renewable energy by UK companies. [142130]

Mr. Timms: The Government have set a target that, by 2010, 10 per cent. of sales from licensed electricity suppliers should come from renewable sourced electricity. There are no plans to change this target.

The Renewables Obligation, enforced under the Renewables Obligation Order 2002 in England and Wales, and the Renewables Obligation (Scotland) Order 2002, is the main mechanism which the Government have introduced to help achieve the growth necessary to reach this target. The Obligation will remain in place until 2027, and licensed electricity suppliers are required to supply a specified and growing proportion of their sales from renewable sourced electricity each year. The level of the Obligation was 3 per cent. in its first year of operation, and now stands at 4.3 per cent. and is set to rise to 10.4 per cent. in the 2010–11 period.

The Government have recently announced their intention to bring forward proposals to raise the levels of the Obligation for the years beyond 2010–11, by further annual increases, reaching 15.4 per cent. in the 2015–16 period. This is a further sign of our commitment to developing the renewables industry.

Mr. Bellingham: To ask the Secretary of State for Trade and Industry what proportion of companies have met their targets for the purchase of renewable energy in the last 12 months. [142147]

Mr. Timms: Under the terms of the Renewables Obligation Order (2002), and the Renewables Obligation (Scotland) Order 2002, licensed electricity suppliers in Great Britain are required to supply specific

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proportions of their electricity sales from renewable sourced electricity—with the aim of reaching the target of 10.4 per cent. in the period 2010–11.

For the year to April 2003, the level of the Obligation was set at 3 per cent. (The current level is 4.3 per cent.). Suppliers demonstrate their compliance with the Obligation through presenting Renewables Obligation Certificates (ROCs) to Ofgem. If they do not present ROCs in this way, they must buy out all or part of their obligation target. Payments made to this buyout fund are then subsequently recycled to those suppliers who have demonstrated their compliance through the ROC mechanism.

The proportions of suppliers meeting their obligations through (1) complete fulfilment and (2) partial fulfilment are shown in the tables.

Suppliers and the 3 per cent. Renewables Target in England and Wales (Renewables Obligation)

	Number	Percentage
Suppliers reaching 3 per cent. target	12	31
Suppliers partially meeting 3 per cent. target	11	29
Suppliers failing to meet any of 3 per cent. target	14	40

Suppliers and the 3 per cent. Renewables Target in Scotland (Renewables Obligation Scotland)

	Number	Percentage
Suppliers reaching 3 per cent. target	15	54
Suppliers partially meeting 3 per cent. target	4	14
Suppliers failing to meet any of 3 per cent. target	9	32

Taking all licensed electricity suppliers in Great Britain together, the proportion of the Renewables Obligation met by the actual supply of renewables in 2002–03 was 58.9 per cent.

Mr. Bellingham: To ask the Secretary of State for Trade and Industry what estimate she has made of the cost to UK companies of meeting current targets for the purchase of renewable energy. [142148]

Mr. Timms: The costs of the Renewables Obligation, the Government's main policy instrument for the achievement of our 10 per cent. renewable energy target for 2010, are expected to be passed on by electricity supply companies to electricity consumers across the industrial, commercial and domestic sectors. The Government estimates that, by 2010–11, the impact of the Renewables Obligation on electricity prices will be the equivalent of an average increase of 4.9 per cent. in real terms over actual 1999 prices.

Standardisation

Mr. Sheerman: To ask the Secretary of State for Trade and Industry what measures she is taking to push standardisation as part of an export and growth drive. [140536]

Ms Hewitt: The National Standardisation Strategic Framework (NSSF) sets out to promote standardisation to the benefit of business, government and society. Within this Framework, the British Standards Institution (BSI) is aligning its activity in international standards making (ISO standards) to changing British business interests. An objective stated

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in the NSSF is to "Optimise the use of standardisation as an international gateway to achieve more open markets, reduce technical barriers to trade, UK trading advantage, technology transfer and international development objectives". We are currently determining how best to pursue this objective. It may be that promotion of UK or European standards will form part of the Government's support for certain sectors of UK business in key export markets.

Timber

Mr. Gardiner: To ask the Secretary of State for Trade and Industry by what means the policy for purchasing timber and timber products of (a) the Department, (b) Companies House, (c) the Employment Tribunals Service, (d) the Insolvency Service, (e) the National Weights and Measures Laboratory, (f) the Patent Office, (g) the Radiocommunications Agency and (h) the Small Business Service ensures that they are obtained from legal and sustainable sources. [141341]

Ms Hewitt: The Department's London headquarters estate (including SBS) operates an environmental management system certified to ISO14001. This environmental management system (EMS) sets out the policy and procedure to be followed in the procurement of timber products. The EMS requires timber to be FSC or equivalent certification. All other buildings within the DTI HQ estate but outside of London are subject to the same procurement criteria.

Letter from David Smith to Mr. Barry Gardiner, dated 9 December 2003:

The Secretary of State for Trade and Industry has asked me to reply on behalf of the Radiocommunications Agency to your Parliamentary Question detailing by what means the policy for purchasing timber and timber products ensures that they are obtained from legal and sustainable sources.

I can confirm that, where the Agency has had the need to procure timber products, it has followed the Department's strict guidelines on purchasing from qualified and certified organisations. All of the Agency's timber products are purchased from suppliers who have satisfied the Department's and the OGC's strict monitoring and inspections regime on producing goods from legal and sustainable sources.

Letter from Alison Brimelow to Mr. Barry Gardiner, dated 9 December 2003:

I am replying to this parliamentary question, tabled on 28 November 2003, regarding the policy of purchasing timber and timber products.

The Patent Office does not purchase timber direct from any suppliers. However, furniture is purchased through the Office of Government Commerce's (OGC) Buying Solutions Framework Agreement where it is a requirement that preferred suppliers hold the relevant Forestry Stewardship Council (FSC) certification. Where we engage the use of contractors for minor building work requirements, they must provide evidence that timber products are sourced from managed and sustainable sources.

In addition, the Patent Office is presently working towards an environmental management system certified to EN ISO 14001.

Letter from Dr. J. W. Llewellyn to Mr. Barry Gardiner, dated 9 December 2003:

The Secretary for Trade and Industry has asked me to reply on behalf of the National Weights and Measures Laboratory (NWML) to your question on what means the policy for purchasing timber and timber products of the National Weights and Measures Laboratory ensures that they are obtained from legal and sustainable sources.

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The National Weights and Measures Laboratory (NWML) is part of the DTI HQ estate and thus is within the scope of the Department's environmental management system, which is certified to ISO 14001. This management system sets out the policy and procedure for procurement of timber products and requires FSC or equivalent certification. Furniture for NWML is purchased from Kinnarps who are an approved OGC supplier. Stationery is purchased mainly from Guilbert (UK) who hold the DTI stationery contract. Where possible products are obtained from their 'environmental benefit' range.

Letter from Desmond Flynn to Mr. Barry Gardiner, dated 9 December 2003:

I refer to your question tabled on 28 November 2003 to Patricia Hewitt regarding the use of timber and timber products. I have been asked to reply to you in relation to The Insolvency Service.

Although we are not major consumers of timber products The Service's policy is always to specify to contractors and suppliers that these materials are provided from sustainable sources. We also require prospective suppliers to confirm this with their bids for our work. Timber is mainly used in office refurbishment projects whereas our office furniture these days is invariably made from melamine-faced chipbord (MFC), rather than virgin timber.

Letter from Roger Heathcote to Mr. Barry Gardiner, dated 9 December 2003:

You asked the Secretary of State for Trade and Industry by what means the Department's policy for purchasing timber and timber products ensures they are obtained from legal and sustainable sources. I have been asked to reply on behalf of the Employment Tribunals Service (ETS), which is an Agency of the DTI.

All furniture supplies are purchased through contracts let by the Office of Government Commerce in respect of which the suppliers have already established proof of conforming with the necessary legal and sustainable requirement in respect of timber. The same requirement is built into our standard terms of contract for works services.

Letter from Claire Clancy to Mr. Barry Gardiner, dated 9 December 2003:

I am responding to your recent Parliamentary Question to the Secretary of State for Trade and Industry on behalf of Companies House, which is an Executive Agency of the DTI.

Companies House operates an environmental management system certified to ISO14001. This sets out the policy and procedure to be followed in the procurement of timber products. Any purchases are therefore from Forestry Stewardship Council accredited sources.

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