CHP and the 1983 Energy Act

The Act´s primary purpose is to encourage the private generation and supply of electricity. It is conceived within the existing Government´s overall policy of privatisation and aims to stimulate competition in the generation of electricity. The Energy Act repeals the ban on anyone other than an Electricity Board or Local Authority from supplying electricity as a main business and describes the commercial arrangements between a private generator and the Utility. The Act also requires Boards to `adopt and support´ combined heat and power schemes and has brought about significant developments in the Industry´s policy on CHP. The author briefly discusses tariffs for private generators and the rate of CHP in private generation of electricity and district heat. Pricing and industrial CHP are also discussed