Additionality w orkshop 1 6 July 2 0 0 7 Agenda Additionality w - - PDF document

Additionality w orkshop

1 6 July 2 0 0 7

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Agenda – Additionality w orkshop 1 6 July – 1 0 until 1 2 .3 0

1 . I ntroductions 2 . Straw m an for renew ables tariffs

• a. Minimum bar strawman – Cassie Higgs, NCC
• b. Information strawman – Nicki Small, SSE

3 . Straw m en for low carbon tariffs

• a. Banding strawmen – Jo Witters, Ofgem

4 . Transparency general 5 . W ay forw ard

Renew able tariffs

• Straw m en discussion

Cassie Higgs, NCC Nicki Sm all, SSE 1 6 July 2 0 0 7

Low Carbon tariffs

• Straw m en discussions

Jo W itters European Strategy and Environm ent 1 6 July 2 0 0 7

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Low carbon tariffs

Potential to rate tariffs on the basis

• f their carbon

intensity Introduce a rating system similar to existing appliance / car efficiency ratings

Allow s custom ers to m ake choices based on carbon preferences

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Low carbon tariffs

Further work needed to develop appropriate ranges for bandings Renewable tariffs likely to be classified as “low” or “very low”

Very low (< 50 Kg/ MWh)

A

Low (50-250 Kg/ MWh) B

B

Medium (250-500 Kg/ MWh) C

C

High (500-750 Kg/ MWh)

D

Very High (< 750 Kg/ MWh) C

E

Banding should becom e m ore challenging over tim e What should the trajectory for emission reductions be set at? 2020 / 2050 targets? Should bands be reviewed annually / every [ x] years?

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I nform ation needed to enable custom er choice

I nform ation w ould need to be provided to support banding data Customers could make better informed choices Information could be used together with renewable rating i.e. a tariff based on renewable supplies may achieve an ‘A’ carbon rating + renewable rating / stamp I nform ation to include: (a) Fuel mix (b) An indication of the average emissions Q – likely to need this inform ation at supplier level?

• Reduce concerns re additionality
• Enable customers to assess overall carbon intensity of the supplier

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Carbon offset not recognised as reducing carbon intensity of tariff Tariffs rated based solely on their carbon intensity Carbon offset an added extra Option 1

Treatm ent of carbon offsetting m easures

2 options for treatm ent of carbon offset w ithin tariffs Carbon intensity of tariff can be reduced by equivalent amount

• ffset through schemes

Tariffs would be awarded a lower carbon rating on this basis Option 2 If information is standardised / clear to customers – Option 1 could provide advantages Questions Should contribution of carbon offset be capped? i.e. equivalent to UK NAP in EU ETS Limited to schemes compliant with Defra accreditation?

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