Watching the World U.K. parties differ on waste

With David Knott from London [email protected] As U.K. political parties vie for voters' support in the next general election-expected about May 1-energy spokesmen for the two main parties have identified waste as an issue worth promoting. Oddly, Conservative party plans to expand burning of waste to generate electricity appear radical in comparison with the Labour party's conservative promises to the energy industry.

Feb. 24, 1997

3 min read

As U.K. political parties vie for voters' support in the next general election-expected about May 1-energy spokesmen for the two main parties have identified waste as an issue worth promoting.

Oddly, Conservative party plans to expand burning of waste to generate electricity appear radical in comparison with the Labour party's conservative promises to the energy industry.

Richard Page, junior energy minister, said that regional electricity companies (RECs) must buy enough power generated from landfill gas, wastes, wind, hydro power, farm wastes, and energy crops to supply a million homes.

The U.K. Department of Trade & Industry (DTI) said RECs are expected to sign contracts with 195 alternate-fuel electricity schemes, under the government's fourth Non-Fossil Fuel Obligation Order (NFFO), its largest yet.

Since 1990, NFFOs have resulted in alternate-fuel projects with combined capacity to generate 428 MW of electric power, at an average price for the most recent plants of 4.35 pence/kw-hr (6.96¢/kw-hr).

Radical power

The new schemes, expected to come on stream between May 1, 1997, and Dec. 30, 2016, could provide 843 MW of additional generation capacity, at an average price of 3.46 pence/kw-hr (5.54¢/kw-hr).

"Real convergence with market prices is clearly now within reach," said Page, "and our strategy of stimulating a competitive renewables market is working well.

"Our aim is to work towards 1,500 MW of new renewables-based generation capacity by 2000. Over the next few years, I expect increasing numbers of renewable energy projects to be developed and be able to generate in the liberalized energy market, without needing support under NFFO arrangements."

Labour claims it views U.K. oil and gas industry as a continuing major employer, supporting 30,000 jobs offshore and 300,000 support jobs onshore and requiring sustained investment.

Tax pledge

John Battle, shadow minister for energy, unable to resist a swipe at the Conservatives' track record over 18 years in power, said, "Waste remains a recurring theme of our daily economic life:

"The waste of human potential through unemployment or through inadequate kills and training; the waste of a declining manufacturing base and of declining investment; the wasting of U.K. oil revenues, squandered on tax cuts for the privileged few instead of invested in the future of the many."

Yet Labour has said it will maintain these tax rates set by the Conservatives, if it wins the election, making its energy tax rhetoric sound irrelevant.

"We have no plans to introduce shock taxes on the oil sector," said Battle, "unlike the Conservative party.

"At the 1996 budget, the Tories scrapped corporation tax deductions on intangible assets on most drilling activities, hoping to raise £150-200 million ($240-320 million).

"Labour's priorities on tax have been clearly spelled out, and I would be misleading you if I hinted that Labour has plans to reverse this particular tax rise."