The Renewable Energy Association is questioning what powers the National Grid will have to police government schemes for electricity market reform.
Yesterday energy secretary Chris Huhne announced the UK’s gas and electricity grid manager will be responsible for the Feed-in Tariff Contract for Difference and the capacity mechanism.
While government will set the prices for the FiT contracts and how much capacity is needed, National Grid will keep tabs on whether suppliers and generators are toeing the line with the help of industry regulator Ofgem.
But Gaynor Hartnell, REA’s chief executive has questions about how the new systems operator will do its job.
She said: “What does [government] expect National Grid to do if things don’t go to plan? What will happen if it’s clear there will be an overshoot in capacity? Conversely, if the price is too low and developers aren’t interested in signing contracts, can it do anything to help?”
DECC is planning to offer more details on the scheme next year. Mr Huhne said: “We have made rapid progress and are now moving to a stage of detailed policy design. Government will continue to work closely with stakeholders through a collaborative process to develop the detailed design of the mechanisms during 2012.”