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Electricity, demand-side measures, supply

Call for evidence on electricity demand-side measures

18 June 2014

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Ofgem’s ongoing work on electricity capacity has predicted that closure of coal and oil power stations, along with wider changes to the electricity mix over the next decade, will increase risks to the UK’s electricity security of supply.

This problem can be addressed by, increasing the supply of electricity by building new power plant or importing it from abroad via interconnectors, or reducing the demand for electricity. This reduction in demand can be temporary (known as demand-side response (DSR)) or permanent (known as electricity demand reduction (EDR)).

The Government’s Energy Efficiency Strategy estimated that the UK could be saving 196 TWh in 2020, equivalent to 22 power stations, through socially cost-effective investment in energy efficiency. DSR and EDR have the potential to contribute to this saving as well as the Government’s goal of ensuring electricity is low-cost, reliable and low-carbon. There is a concern, however, that the Government’s current DSR and EDR policies will fail to ensure that demand-side measures reach their full potential.

This inquiry will scrutinise the policies the Government is currently in the process of implementing to try and encourage the growth of DSR and EDR.

Call for evidence

The Committee invites responses addressing some or all of the following questions:

  • Are the Government’s and Ofgem’s current proposals for incentivising the development of demand reduction measures enough to ensure the potential energy savings outlined in the 2012 Energy Efficiency Strategy are achieved?
  • How will National Grid’s new Demand Side Balancing Reserve (DSBR) enable demand-side response (DSR) to play a positive role in avoiding capacity shortfalls in the coming years? What improvements to the scheme are required?
  • What problems (if any) are there with the proposed Capacity Mechanism (CM) Transitional Arrangements (TA) in relation to DSR? To what extent does participation in the TA limit the future potential of DSR in the CM?
  • How can the Government ensure that new technology which facilitates DSR is deployed in a timely manner, now and in future, to reduce peak demand for electricity?
  • What problems (if any) are there with the proposed Energy Demand Reduction (EDR) pilot scheme? How should the Government ensure that the pilot provides sufficient evidence to assess the viability of a long-term EDR scheme (including in the forthcoming CM)?
  • How will the Government’s latest detailed design proposals for the forthcoming CM help to develop an enduring regime for demand reduction measures?

Deadline

The Committee originally asked for written submissions in accordance with the guidelines below by Wednesday 9 July 2014 but written evidence is still being accepted after this original deadline.

Submitting written evidence

Written submissions for this inquiry should be submitted via the Electricity demand-side measures Inquiry Page on the Committee's website.

Guidance on written evidence

The deadline is Wednesday 9 July 2014. As a guideline submissions should state clearly who the submission is from e.g. ‘Written evidence submitted by xxxx’ and be no longer than 3000 words, please contact the Committee staff if you wish to discuss this. If you need to send hard copy please send it to: The Clerk, Energy and Climate Change Committee, 14 Tothill Street, London, SW1H 9NB.

Submissions must be a self-contained memorandum in Word or Rich Text Format (not pdfs). Paragraphs should be numbered for ease of reference, and the document should, if possible, include an executive summary.

Submissions should be original work, not previously published or circulated elsewhere. Once submitted, your submission becomes the property of the Committee and no public use should be made of it unless you have first obtained permission from the Clerk of the Committee. Please bear in mind that Committees are not able to investigate individual cases.

Publication of evidence

The Committee normally, though not always, chooses to publish the written evidence it receives, either by printing the evidence, publishing it on the internet or by making it publicly available through the Parliamentary Archives. If there is any information you believe to be sensitive you should highlight it and explain what harm you believe would result from its disclosure; the Committee will take this into account in deciding whether to publish or further disclose the evidence.

The personal information you supply will be processed in accordance with the provisions of the Data Protection Act 1998 for the purposes of attributing the evidence you submit and contacting you as necessary in connection with its processing. The Clerk of the House of Commons is the data controller for the purposes of the Act.