Powering prices

The UK supplies the lowest priced power in Europe, and its Department of Trade and Industry wants to keep it that way. So it has published a report uncovering how the European Emissions Trading Scheme will affect power prices across Europe. By James Ockenden

There are so many unknowns surrounding the European Emissions Trading Scheme (ETS), perhaps it is best to start with some facts.
In the UK, the power generation sector suffers the greatest impact of the ETS – its allocation under the UK’s national allocation plan (NAP) is 132.2 million tonnes of CO2, against annual emissions of 158.2 million tonnes of CO2 in 2002. So while the iron and steel sector must reduce its emissions by just 0.6% and refineries are allowed an increase of 6.7%, power

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