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Security of supply policies

Initial Security of Supply Policy

The Government Policy Statement (GPS) sets out a number of requirements that have implications for security of supply policy, the way it should be approached, the means by which it should be monitored, and how reserve energy should be utilised; all of which need to be set out in policy documents and published by the Commission.

The initial security of supply policy addresses most of the key elements.  The exception is the policy relating to the process for procuring Reserve Energy (GPS paragraph 55) and the policy relating to the implementation of measures to be employed within the emergency zone (GPS paragraphs 72, 73 and 74). 

Interim Emergency Response Plan

At the beginning of 2005 the Security Advisory Group (SAG) noted that it would take some time for the Commission to complete the normal consultative process and formalise its dry year emergency policy. It expressed a concern that emergency provisions might be required if a dry period, or some other contingency, were to occur. The group suggested that this problem could be avoided if, in the meantime, the Commission developed an interim approach to managing emergencies.

The Commission subsequently commissioned the development of a draft Interim Emergency Response Plan (Interim ERP) that could be activated should an energy supply contingency arise in the near future. The Interim ERP draws on the approach adopted by the 2003 Winter Task force.

Use of ripple control of hot water during security of supply situations

The GPS expects the Commission to put in place contingency arrangements for the use of ripple control of hot water heating, if appropriate, as a conservation measure or in response to unexpected asset (generation or transmission) outages, paragraph 73.

In response to a number of submissions received on the discussion paper on emergency security of supply provisions raising doubts about the effectiveness of extended water heating cuts as an emergency measure the Commission considered and reached a conclusion on the potential of such measures.

Last update on 08 November 2007 10:54 AM