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

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 2

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

Low carbon tariffs Potential to rate tariffs on the basis of 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 5

Low carbon tariffs A Very low (< 50 Kg/ MWh) � Further work needed to B B Low (50-250 Kg/ MWh) develop appropriate ranges for bandings C Medium (250-500 Kg/ MWh) C � Renewable tariffs likely to be D High (500-750 Kg/ MWh) classified as “low” or “very low” E Very High (< 750 Kg/ MWh) C 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? 6

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 7

Treatm ent of carbon offsetting m easures 2 options for treatm ent of carbon offset w ithin tariffs Option 1 Option 2 � Carbon intensity of tariff can be � Carbon offset not recognised as reduced by equivalent amount reducing carbon intensity of tariff � Tariffs rated based solely on their offset through schemes � Tariffs would be awarded a carbon intensity � Carbon offset an added extra lower carbon rating on this basis If information is standardised / clear to customers – Option 1 could provide advantages � Should contribution of carbon offset be capped? Questions i.e. equivalent to UK NAP in EU ETS � Limited to schemes compliant with Defra accreditation? 8

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