Memorandum submitted by the Electricity
The Electricity Association is the trade body
that represents the major electricity companies in the United
Kingdom of Great Britain and Northern Ireland. Its membership
includes electricity generating companies in Northern Ireland.
The Electricity Association would like to remind
the committee that the Aggregates Levy applies to all crushed
rock, sand and gravel, although there is the possibility of relief
for materials used for prescribed purposes. A common use for crushed
rock (limestone) in electricity generation is as a chemical feedstock
for Flue Gas Desulphurisation (FGD) systems, ie the removal of
sulphur from flue gasses for environmental reasons. Since the
reason for the introduction of the Aggregates Levy was to protect
the environment, it does not seem consistent for it to be applied
to another process designed to protect the environment (FGD).
If not given relief, the Aggregates Levy will
also raise the cost of electricity fitted with this type of FGD
system. Potentially this could disadvantage Northern Ireland generators,
some of which are planning to fit FGD systems, with respect to
generators located in the Republic of Ireland, there being electrical
interconnection between the two states. It is therefore important
that such use of limestone be prescribed for relief from the Aggregates
Levy in Northern Ireland.
24 October 2001