20.11.2009

The government set out their plans for funding CCS during the Queen's speech, reports Envido.

The government will introduce measures to fund up to four carbon capture and storage (CCS) plants and improve flood defences. An energy bill will include a £9.5bn levy on electricity bills over the next 10 years to fund the demonstration CCS coal power plants.

There are two power stations left in the government's competition to fund a post-combustion CCS power plant to be operational by 2014. The money will help the government to fund the construction of a further three plants before 2016.

The bill is also expected to give regulator Ofgem more power to intervene to force down utility prices. Ofgem is the Office of the Gas and Electricity Markets in charge of protecting consumers by promoting competition and regulating the monopoly companies which run the gas and electricity networks.

CCS proposal will help vulnerable households and energy bills

The Queen said that the legislation will support carbon capture and storage (CCS) and help more vulnerable households with energy bills.

According to critics, the the CCS and flood proposals are not likely to be pushed through parliament before the next summer elections. Conservative peers have said they will slow legislation as much as possible in the House of Lords.