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Dept of Trade and Industry

Answer

Mr. Hopkins: To ask the Secretary of State for Trade and Industry what the role of Elexon Ltd. is in the operation of the electricity market in England and Wales; if she will undertake a review of this role; and if she will make a statement. [159092] Mr. Timms: [holding answer 8 March 2004]: Elexon Ltd. is the Balancing and Settlement Code Company (BSCCo) established under the provisions of the Balancing and Settlement Code (BSC). The principal role of the BSCCo is to provide and procure facilities, resources and services (including providing or procuring resources required by the BSC Panel and BSC Panel Committees, and procuring services under BSC service descriptions) required for the proper, effective and efficient implementation of the BSC. The powers of the BSCCo are subject to the restrictions and limits set out in the BSC. The systems and processes outlined in the BSC have operated effectively since the introduction of the New Electricity Trading Arrangements (NETA) on 27 March 2001. These include arrangements for the use of meter readings to allocate energy between participants, to register energy trades, to aggregate balance positions and to calculate and apply imbalance prices for each half an hour, twenty four hours a day. They underpin competition in generation and in the supply of electricity. Extensive consultations were carried out by the DTI and Ofgem on the role of Elexon prior to the inception of the New Electricity Trading Arrangements in March 2001. Ofgem and the DTI, as part of the second consultation on the legal text of a Great Britain Balancing and Settlement Code (June 2003), also consulted on whether Elexon's remit, as the Balancing and Settlement Code Company, should be extended to electricity trading arrangements in Scotland. In addition, Ofgem keeps the operation of the BSC under constant review and considers the annual business strategy and budget documents carefully.

Secondary information

Type

Written question

Reference

159092; 418 c1421-2W;418 c1423-4W

Session

2003-04

Subjects

Energy supply Electricity Markets Regulation Elexon

Link

View this Written question on www.publications.parliament.uk