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The government is to encourage independent renewable generators to gain entry to the electricity market by tabling an amendment to the Energy Bill making it easier to sell power to suppliers via power purchase agreements.
Independent generators do not usually have a strong supply arm that sells electricity direct to consumers and have traditionally found it hard to enter the market which is dominated by the big six vertically integrated energy companies.
Energy minister Greg Barker, said: “Opening up the electricity market to more competition is a fundamental part of the reforms we are introducing through the Energy Bill.
“It will also allow new smaller players to gain a greater share of the exciting renewable electricity market.”
The amendment will enable the government to establish a scheme obliging suppliers to buy electricity from renewable generators under specified conditions if they were unable to agree a commercial contract. It would be used as a last resort, to strengthen routes to market and stimulate competition.
The Energy Bill is currently being debated in the House of Lords.
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