The Government have stated that they could not divulge what is in the Queens speech before the Queen does, but it is a fair bet that there will be a climate change bill. If one was to guess what this bill did then we could be here for some time, but Powerisk hopes that some for of streamlining is introduced.

At the moment any large supplier will potentially be looking at CCL exposure, ROCs (from in house generation) the EU ETS scheme if the have some form of large usage or generation unit over 20MW. All of these schemes are designed to help measure and reduce carbon production, but there are some who feel that becoming experts in each scheme is very lucrative. In reality we should be looking at combining all of them into one easy tradeable and fungible commodity. At the moment the best example of this is the EU ETS.

Any market which has one side redeeming vouchers and redistributing the cash is open for abuse and not surprisingly ROCs have been abused. Furthermore with banding associated with CCL then this starts to push the market into areas which are not necessarily what the overall aims of the market are set out to be. Careful thought is needed but a single streamlined market can only be good.