NATURAL GAS TRANSMISSION NETWORKS (13045/07)
Letter from Malcolm Wicks MP, Minister
of State for Energy, Department for Business, Enterprise and Regulatory
Reform to the Chairman
I am writing to revise some of the figures appearing
in the above Explanatory Memoranda and their associated Impact
Assessment. I apologise for having to do this—I am afraid
some confusion arose in their drafting owing to the number of
documents that needed to be produced in relation to the whole
package of EU energy liberalisation measures the Commission produced
in September.
A single Impact Assessment was submitted covering
both proposal 13045/07 and 13049/07. This gave a figure for
the total average annual benefits of the proposed revisions to
both the Regulation and the Directive as £95 million
a year, starting in 2010-11. Meanwhile an earlier calculation,
a figure of £142 million a year, was given in the Explanatory
Memoranda. The correct figure has since been calculated as £132 million
per annum.
A revised version of the Impact Assessment and
the two Explanatory Memoranda is attached, reflecting these figures
and a further small reduction of the total cost over 20 years
of the proposals from £439 million to £407 million.
There has also been a recalculation of the cost
of the proposals for electricity, resulting in a small reduction
in the cost over 20 years from £475 million to £470 million.
I attach a revised Impact Assessment (not printed) for this too.
These changes do not affect the substance of
the conclusions of the analyses, as the predicted benefits significantly
outweigh the costs.
My apologies once again.
16 November 2007
Letter from Malcolm Wicks MP to the Chairman
Following my recent correspondence on the internal
energy market, I thought you might wish to see the attached document
(not printed) from the Portuguese Presidency, giving their assessment
of the progress made in Energy Council discussions since the Commission
made its proposals in September. Discussions in the Council have
so far been focused on high level concepts rather than the detail
of the text. We expect further progress in the New Year.
I also enclose the Explanatory Memorandum (not
printed) on the Gas Regulation Regulation (EC) No 1775/2005 (document
reference 10349/07) referred to in my letter to you of 16 November.
I apologise for the delayed arrival of this document.
28 November 2007
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