EU ETS Phase II allocations Possible post consultation revisions

1
EU ETS Phase II allocationsPossible post-
consultation revisions

• Nicola Kirkup
• Energy Markets Unit
• Department of Trade and Industry

22 June 2006
2
Nomenclature

• Large
• Electricity
• Producers

3
Calculation of load factors

• Baseline period 2000 2003
• In line with other EU ETS sectors
• Data amendments
• Discarding some data points commissioning,
  administration, non-availability of data
• Amendment of Scottish data
• Ferrybridge split

4
Calculation of load factors (2)

• Retain 28.54 for opted-out coal
• But remove the uplift for other sub-sectors
• Opted-out shortfall not redistributed
• Production capability in line with upper end of
  UEP projections even without redistribution

5
Sub-sectoral issues

• No differentiation for opted in coal
• No legal scope for post-hoc adjustment
• Impossibility of identification of plants,
  timescales or impact of LCPD in advance
• Retain current grouping of Other
• Division into smaller sub-sub groups unhelpful

6
Emissions factors

• Align efficiencies with UEP
• Equalise opted-in and opted-out coal
• Reduce Others efficiency
• Align carbon content and calorific value with UK
  Greenhouse Gas Inventory
• Use of gross basis throughout

7
Capacity definition

• Retain use of TEC (7YS 2005) as general rule
• Exception for trading sites, where CEC will be
  used
• Rocksavage
• Saltend
• Teesside

8
New Entry Reserve

• Table 3.5, Seven Year Statement
• Drakelow, Langage, Marchwood, Milford Haven,
  Pembroke, Uskmouth
• Average about 4.4 GW/annum

9
Outcome Pre scale factor adjustment
10
Thank you

• Nicola Kirkup
• Energy Markets Unit
• Department of Trade and Industry

22 June 2006