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18 Oct 1996
At the close of the public consultation by the Office of Electricity Regulation (OFFER) on price restraints for a competitive electricity market in 1998, Friends of the Earth said that OFFER has not sufficiently considered how renewable energy might be promoted. As a result, when the domestic electricity consumer has the opportunity to choose who they buy electricity from under a fully liberalised market in April 1998, there could be a massive demand for green energy that will be unmet.
Friends of the Earth's response identifies several omissions in the OFFER document. These include the incorporation of externalities (the costs of environmental degradation resulting from fossil fuel based energy production) in the pricing of electricity; appropriate support mechanisms for less developed renewable industries to join the competitive market; and consideration and support for the role of green energy traders.
As the threat of global climate change becomes ever more visible, the source of the problem - greenhouse gas emissions resulting from electricity generators' reliance on fossil fuels - will be under scrutiny. The potential for consumer demand for green energy in a liberalised market requires appropriate mechanisms for green energy trading to grow and flourish through a competitive market.
Tricia Allen, Energy Campaigner for Friends of the Earth said:
"There is a real opportunity for the electricity industry to allow renewable energy to flourish, and for new jobs to be created as a result. The potentially catastrophic effects of global climate change can be overcome if the electricity industry acts responsibly by making the most of this opportunity now. When people start demanding green energy in a liberalised market in 1998, we just hope the industry will be able to deliver."
Contact details:
Friends of the Earth
26-28 Underwood St.
LONDON
N1 7JQ
Tel: 020 7490 1555
Fax: 020 7490 0881
Web: www.foe.co.uk/feedback.html
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