Monday 25 October 2010

Carbon Price Floor

This seems to be a recurrent theme at the moment. The FT reports that the big six utilities are lobbying for the carbon floor price to be set significantly higher than many commentators think will be the case, or for some other incentive to be put in place, in order that new nuclear can be incentivised.

For instance, it reports that Volker Beckers of npower is arguing for extension of the Renewables Obligation to cover nuclear on a "level playing field" basis. That is an argument that a lot of people have a problem with because of the huge rents that may be afforded to some technologies as a result. It's a long-running debate that's been knocked back and forth ever since the RO was first mooted. I don't think Mr beckers will get his way.

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