Speeches

Alan Brown – 2015 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Alan Brown on 2015-11-05.

To ask the Secretary of State for Energy and Climate Change, what assessment her Department has made of the merits of exempting operators of electricity storage from Balanced Services Use of System charges.

Andrea Leadsom

The Department and Ofgem are jointly considering the need to address the legislative status of storage, which has potential implications for the charging regime for storage. Ofgem have recently published “Making the electricity system more flexible and delivering the benefits for consumers”, in which they state, “While storage has been providing flexibility in other countries, and pumped storage has historically played a strong role in GB, the potential of battery and other forms of storage to smooth intermittent generation or contribute to local balancing has not yet been fully realised in the UK… We will therefore: undertake work with DECC to clarify the legal and commercial status of storage and explore whether changes to the regulatory and commercial framework are needed to enable its efficient use, seeking input on options from stakeholders. Where changes are needed, they will be informed by considering the interactions and implications of a new regulatory framework for storage on all segments of the market”:

https://www.ofgem.gov.uk/sites/default/files/docs/2015/09/flexibility_position_paper_final_0.pdf.