Where's the break point?
The UK's assumption about carbon costs underpins some huge programmes - not least the smart meter rollout. It has to reflect assumptions about how costs will change over the long term and can't swing on the whim of today's market.
- Thames Water takes new chief executive from telecoms sector
- UK fracking sector gets major boost as Third Energy's application approved
- Water firms only allowed to back-bill for 16 months: Ofwat
- Government capacity market measures will hit distributed generation, ADE warns
- North Yorkshire Council set for decision on Third Energy’s fracking plans
But the European Investment Bank raised about €8 per allowance - about £6.50 - when it sold allowances in the Emissions Trading Scheme to fund carbon capture and storage projects. It was thought lucky to get it. Meanwhile, the government's nominal carbon price in the CRC Energy Efficiency Scheme stands at £12. At what point does the current, real, carbon price begin to affect our long-term assumptions?
This article first appeared in Utility Week's print edition of 20 January 2012.
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