§ Gregory Barker
To ask the Secretary of State for Trade and Industry what her Department's methods are for assessing price imbalance exposure of(a) CHP and (b) renewable energy generators. 
§ Mr. Wilson
The DTI does not make formal or detailed assessments of CHP and renewable generators' exposure to the imbalance prices that exist as part of the New Electricity Trading Arrangements (NETA). This is a commercial matter for generators.
On 4 April 2002 the Government published its response to the consultation on NETA and smaller generators of 1 November 2001 http://www2.dti.gov.uk/energy/domesticmarkets/electricitytrading/netaresp.pdf.
This identified the following actions that would be taken:
- (i) work with OFGEM to look at whether so-called "embedded benefits" could or should be made directly available to smaller generators;
- (ii) address some of the administrative burdens faced by smaller generators;
- (iii) ask OFGEM to ensure that imbalance prices are genuinely cost-reflective; and
- (iv) allow all generators to notify their predicted output closer to "real time".
The Government continues to monitor the situation closely.