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identifier	HL467
max ddp created	2014-06-19T18:57:29.690Z
min date tabled	2014-06-10
answer date	2014-07-03
min answer date	2013-05-20

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registered interest

date

exactly:

or between:
and

answering body

answering dept id

answering dept short name

answering dept sort name

hansard heading

house id

legislature


pref label

question text

tabling member printed

uin

answer

is ministerial correction

date of answer

exactly:

or between:
and

answer text

answering member printed

question first answered

answering member


label

tabling member


label

62787

registered interest

date

19/06/2014

answering body

Department for Energy and Climate Change

answering dept id

answering dept short name

Energy and Climate Change

answering dept sort name

Energy and Climate Change

hansard heading

Energy: Prices

house id

legislature

25277

pref label	House of Lords

question text

To ask Her Majesty's Government, further to the Written Answer by Baroness Verma on 16 June (WA 23–24) on energy prices, what assessment they have made of the time needed for suppliers to develop a conditional Contracts for Difference (CfD) powerpurchase agreement (PPA), for it to undergo an internal credit approval process, to be negotiated competitively with independent generators, and to be assessed by the generator's putative financiers before they can offer finance terms to independent generators; and what impact they consider that timeframe will have on conditional PPAs being agreed prior to the first allocation round of CfDs.

tabling member printed

Lord Berkeley

uin

HL467

answer

is ministerial correction

date of answer

26/06/2014

answer text

We anticipate that some generators will seek to establish the terms of any PPA and financing arrangements before they participate in the CfD allocation round, in order to understand better their likely costs. Agreements between generators and PPA providers could take a number of different forms, from indicative terms to a signed contract. The decision to sign a conditional PPA ahead of the auction, and the duration of any agreement, are ultimately commercial matters.We anticipate that the Offtaker of Last Resort (OLR) will encourage competition in the PPA market both at the outset of the CfD and once any initial PPA has expired. Generators agreeing to a conditional PPA would be able to participate in the later short-term PPA market, once their initial PPA had expired; backed by the protections afforded by the OLR.

answering member printed

Baroness Verma

question first answered

26/06/2014 11:11:51

answering member

3790

label	Biography information for Baroness Verma

tabling member

3526

label	Biography information for Lord Berkeley