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9 Jan 2008 : Column 674W—continued
Post Offices
Mr. Pickles: To ask the Secretary of State for Business, Enterprise and Regulatory Reform how many post offices there are in each parliamentary constituency in the United Kingdom. [176333]
Mr. McFadden: Post Office Ltd. annually places in the Libraries of the House a list of all post offices in the network by parliamentary constituency. The list gives post office name, post town and post code.
Post Offices: Closures
Jo Swinson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform (1) what the length of the Government’s outstanding lease on the Post Office building on Kerr Street, Kirkintilloch is; [175604]
(2) what procedures there are to deal with outstanding leases remaining on Government properties that have been vacated following closures of post office branches. [175603]
Mr. McFadden
[holding answer s 7 January 2008]: This is an operational matter for Post Office Ltd.
(POL). I have therefore asked Alan Cook, Managing Director of POL, to reply direct to the hon. Member.
Copies of the letter will be placed in the Libraries of the House.
Mr. Pickles: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what instructions his Department gave to Royal Mail on announcing details of Post Office closures in the month during the run up to the 2008 local elections in England and Wales. [176364]
Mr. McFadden: The normal purdah arrangements, set out in Cabinet Office guidance which has been observed by successive administrations of both parties for many years, take effect every year during local elections. The guidance clearly states that consultations should not be launched, and decisions relating to them announced, in an election period. This will apply to post office closure proposals and decisions from 7 April to 2 May in respect of the local elections to be held in England and Wales on 1 May 2008.
Postal Services
Dan Rogerson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate he has made of the proportion of stamps which remained unfranked by the Royal Mail’s mail management systems in 2006-07; and if he will make a statement. [176647]
Mr. McFadden [holding answer 7 January 2008]: This is an operational matter for which Royal Mail has direct responsibility. I have therefore asked the Chief Executive of Royal Mail, Adam Crozier, to provide a direct reply to the hon. Member. A copy of the response will be placed in the Libraries of the House.
Regional Development Agencies: Trade Unions
Mr. Pickles: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what grants were given by each regional development agency to trades unions in the last 24 months. [176361]
Mr. Timms: The following funding has been provided by RDAs to trade unions in the last 24 months:
The following funding has also been provided by RDAs in the last 24 months to the Trade Union Congress:
Regulatory Impact Assessments: Public Sector
Mr. Pickles: To ask the Secretary of State for Business, Enterprise and Regulatory Reform whether impact assessments are required for legislation or regulation that imposes costs on public authorities, but not the private sector. [176334]
Mr. McFadden:
Any proposal affecting costs in the public sector requires an impact assessment unless the
costs fall beneath a pre-agreed threshold (generally £5 million) and the proposal is not likely to attract high levels of political or media interest. In cases where costs are small and there is limited interest, only a developmental/option stage impact assessment is necessary.
The official guidance on impact assessments, which was revised in the spring of 2007, is available at http://bre.berr.gov.uk/regulation/documents/ia/iag.pdf
Renewable Energy
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate his Department has made of the contribution of plant development under the renewables obligation in providing despatchable capacity for the United Kingdom's electricity grid. [175688]
Malcolm Wicks: According to the latest available figures, up to end 2006 plant development under the RO had contributed 2046 MW of despatchable capacity (comprising generation from large and small hydro, co-firing, landfill gas, municipal solid waste combustion, sewage sludge digestion, and other biofuels and waste, but excluding wind and solar).
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate has been made of the likely system costs arising from the part-loading and increased maintenance of plant operating outside the balancing mechanism but affected by fluctuating power flows resulting from the renewables required to meet (a) current renewable electricity targets and (b) those likely to be required under the EU 20 per cent. renewables target for total primary energy. [175703]
Malcolm Wicks: This is an issue that is best directed at the generator companies themselves who may be able to provide specific information on costs. However, it seems likely that any additional maintenance costs incurred by conventional plant that is required to part-load or regulate its output will be reflected in the prices charged for reserve/balancing services. From work done by the UK Energy Research Council and others it is estimated that the balancing/reserve costs likely to be incurred in meeting the Government's current renewables target for 2010 would lie in the range of £0.2 to £2.9/MWh, which would equate to an increase in electricity prices of up to 0.06p/kWh.
It is too early to estimate what proportion of the UK contribution to the EU 20 per cent. target will come from any particular source of renewable energy and the impact that might have in terms of increased part-loading or maintenance costs incurred by conventional plant. Agreement has not yet been reached on the contribution that each member state will make towards the 20 per cent. target, but we will consult in 2008 on policy options to meet the UK'S contribution and publish our full UK renewable energy strategy the following spring once the EU directive has been agreed.
Mr. Paterson:
To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate has been made of the likely change in overall system costs due to network expansion to support renewables required to meet (a) current renewable
electricity targets and (b) those targets likely to be required under the EU 20 per cent. renewables target for total primary energy; and how much of the likely costs are attributable to the (i) transmission and (ii) distribution system. [175704]
Malcolm Wicks: In terms of investment in the transmission system, Ofgem have agreed £560 million specifically to connect new renewable generation in Scotland and the North of England, which will contribute to the delivery of the Government's 2010 renewable targets. In addition, the current Transmission Price Control, which covers the five year period up to March 2012, allowed a further £3.8 billion of investment to cover network refurbishment and the costs of accommodating new generators of all types. The Transmission Price Control Review (TPCR) also provides flexible funding for the connection of additional generation in excess of that assumed in its base allowances. This flexible mechanism will provide funding for additional renewable generation, as it comes forward.
Similarly, in terms of the distribution networks, Ofgem has sanctioned funding of some £5.7 billion over the five year period from 2005 to 2010 via the Electricity Distribution Price Control Review (EDPCR) to cover network refurbishment and development, including that associated with the connection of generation. The EDPCR also provides explicit schemes to help Government achieve their 2010 targets for renewable energy and for the connection of combined heat and power (CHP), including direct incentives for the connection of distributed generation and development of innovative connection schemes.
Looking beyond the timescale of the current transmission price control, it is too early to estimate what proportion of the UK contribution to the EU 20 per cent. target will come from any particular source of renewable energy and what the implications might be for the transmission and distribution systems. Agreement has not yet been reached on the contribution that each member state will make towards the 20 per cent. target, but we will consult in 2008 on policy options to meet the UK's contribution and publish our full UK renewable energy strategy the following spring once the EU directive has been agreed.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate has been made of the change in system balancing costs of adding the non-despatchable generators to the UK portfolio required to reach (a) current renewable electricity targets and (b) those targets likely to be required under the EU 20 per cent. renewables target. [175705]
Malcolm Wicks: It is estimated that the additional annual balancing costs that are likely to be incurred in meeting the Government's current renewables target for 2010 would lie in the range of £0.2 to £2.9/MWh, which would equate to an increase in electricity prices of up to 0.06p/kWh.
It is too early to estimate what proportion of the UK contribution to the EU 20 per cent. target will come from any particular source of renewable energy and the impact that will have on overall balancing costs. Agreement has not yet been reached on the contribution that each member state will make towards the 20 per cent. target, but we will consult in 2008 on
policy options to meet the UK'S contribution and publish our full UK renewable energy strategy the following spring once the EU directive has been agreed.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform whether an estimate has been made of the likely effect of renewable generation supported by the renewables obligation on the thermal efficiency of gas-fired electricity generation. [175706]
Malcolm Wicks: No such estimate has been made.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what meetings (a) he and (b) his Ministers have held with representatives of manufacturers of components for the renewables industry in the last 12 months. [175707]
Malcolm Wicks: There have not been any meetings between (a) the Secretary of State for Business, Enterprise and Regulatory Reform or (b) other BERR Ministers and representatives of manufacturers of components for the renewables industry in the last 12 months.
However, BERR Ministers have had a number of meetings with representatives from the microgeneration industry, including trade associations and companies in the last 12 months.
Renewables Obligation
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what steps are being taken to reduce deadweight subsidy under the renewables obligation. [175690]
Malcolm Wicks: The document ‘Reform of the Renewables Obligation’(1) sets out proposals to band the RO so more expensive renewable energy generation technologies, especially those at an earlier point in their development of technology and business model, are awarded more than projects in more economic technologies.
It is estimated that these proposals should lead to a deadweight cost reduced by £3.4 billion compared to the current model.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate he has made of the deadweight subsidy provided by the renewables obligation since 2002; and how much he expects such deadweight subsidy to total in the period up to 2027 assuming the obligation is not revised. [175691]
Malcolm Wicks: There has been no estimate of the deadweight subsidy provided by the renewables obligation since 2002.
If there are no changes to the current model the lifetime deadweight subsidy (defined as cost to the consumer less the resource cost) is estimated to be £9.1 billion. The assumptions on which this figure is based are set out in the report ‘Reform of the renewables obligation—what is the likely impact of changes’(1) which was published alongside the recent consultation.
The changes proposed in the May 2007 consultation on ‘Reform of the Renewables Obligation’ are estimated to lead to a reduced deadweight cost of £3.4 billion compared to the current model.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what his most recent estimate is of the cost to consumers of the renewables obligation in each year since 2002; and how much he expects it to be in each year until 2027. [175692]
Malcolm Wicks: We have not broken down the cost to consumers on an annual basis but the report ‘Reform of the renewables obligation—what is the likely impact of changes’(1), which was published alongside the May 2007 consultation on reform of the renewables obligation (RO), gives a lifetime cost to consumers of £23.7 billion under the current model and £25.1 billion under a banded RO.
Mr. Paterson: To ask the Secretary of State for Business, Enterprise and Regulatory Reform what estimate he has made of the internal rates of return accrued by developers of renewable energy electricity generation projects under the renewables obligation in the technology sectors. [175693]
Malcolm Wicks: No such estimate has been made. However, the report by Ernst and Young ‘Impact of banding the Renewables Obligation—cost of electricity production’(1) published alongside the May 2007 consultation on reform of the RO estimated the cost of capital likely to be required for projects using different technologies.
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