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Introduction of British electricity trading market delayed

19 June 2003 - A legislative backlog has resulted a the delay of six months in the introduction of a competitive wholesale power trading market adding Scotland to England and Wales

The Department of Trade and Industry (DTI) said that the legislation would now not put introduced in this session of parliament which ends mid-July.

Energy regulator Ofgem said they were working towards an April 2005 launch of British Electricity Trading and Transmission Arrangements (Betta), against a previous target of October 2004.

"We will continue to work with the Department of Trade and Industry, industry and others towards the new implementation date of April 2005," said David Halldearn, Ofgem's director for Scotland in a statement.

The new arrangements are based on the success of Neta in England and Wales in reducing power prices and the Betta scheme is intended to achieve the same result in Scotland by bringing it into the British scheme. The new arrangements will also make it easier for Scottish generators, especially the region's green energy projects, to find a market for their electricity south of the border.

Analysts say Betta could also act as a catalyst for a potential merger of Scotland's two main power utilities, Scottish Power and Scottish & Southern Energy by removing competition concerns raised by a combination of the two companies.

Ofgem said the delay to Betta would disappoint Scottish consumers and generators. : "Scottish customers are missing out on the benefits of stronger competition. Scotland's ambitions for renewable energy are also dependent on the transmission network changes which GB-wide reforms will bring. That is why today's announcement is not only disappointing for us but also for Scottish consumers and the generating industry in Scotland," said Ofgem's Halldearn.

Britain is relying on the expansion of Scotland's wind energy industry to boost the country's use of renewable energy as part of a bid to curb emissions of greenhouse gases.




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