United Kingdom
Climate change levy
The Confederation of British Industry has been lobbying for the forthcoming climate change levy due to be implemented on 1 April 2001, to be delayed until 1 April 2002, due to concerns of the financial implications on smaller companies. Many smaller companies will be unable to qualify for rebates which are being offered at up to 80% during the first 10 years for energy-intensive industries. There is also concern that the levy will distort competition in some industries, penalising those that have already invested in energy efficient technology.
(The Financial Times, 21 August 2000)
Utilities act
The Utilities Act received Royal Assent on 28 July 2000 providing for a combined regulator for the gas and electricity industries. The Act aims to modernise the regulatory framework and encourage further competition, particularly in electricity generation and supply. The Act provides the powers needed for the early establishment of the New Electricity Trading Arrangements (NETA), which will introduce effective competition and lower prices for consumers. The new combined regulator will be the Gas and Electricity Markets Authority and it will have powers to impose financial penalties on companies failing to comply with their licence requirements. An independent Gas and Electricity Consumer Council is created by the Act, which will handle complaints and provide information to consumers.
(SO, July 2000)
Environmental action plan
A draft Environmental Action Plan, which brings together all the environmental issues that need to be addressed by Ofgem has been published, with interested parties' comments invited. Under the new Utilities Act, one of the objectives set for Ofgem is an increased emphasis on environmental and social issues. The draft Plan looks at creating incentives to use energy efficiency in price controls for gas and electricity, administering the climate change levy exemption, requiring new Codes of Practice covering energy efficiency advice and monitoring the development of combined heat and power generation, amongst other things. Comments will be reviewed, followed by a series of meetings and workshops with interested parties before the Plan is finalised.
(Ofgem, July 2000)
European Union
Energy efficiency
The Common Position adopted by the Environment Council on energy efficiency requirements for ballasts for fluorescent lighting has been published in the Official Journal. The aims of the proposal are to establish minimum efficiency requirements for ballasts attached to fluorescent lamps, which account for a significant share of energy consumption in the Community, in order to transform the market and to achieve considerable energy savings at low cost. The implementation of the proposal should in turn assist the Community in achieving its targets under the Kyoto Protocol. The European Parliament proposed a number of amendments to the original proposal after the first reading, most of which have been taken into account in the text of the Common Position. Five years on from the implementation of this proposal, there will be a further phase of reviewing and tightening energy efficiency requirements for ballasts for fluorescent lighting.
(OJ C 208, 20 July 2000)
