25 April 2002
Energy buyers with combined heat and power plants (CHP) have been given an impetus to crank up their machinery, most of which has been lying under-used or turned off.
Gordon Brown announced that electricity generated by CHP plants sold into the national grid will be exempt from the climate change levy when sold on.
Ian Dobson, chairman of CIPS's energy committee, welcomed the news, which should make CHP electricity less expensive than ordinary electricity.
"CHP power got the break and it needs it," he said. Most companies were not using their equipment at the moment because it cost more to run than they could make from selling the power.
Anna Jones, market analysis manager at consultancy Energy Information Centre, said CHP generators should be able to negotiate a share of the levy exemption for their power, which would help them in a difficult trading environment.