Book - School of Science and Technology

660 Running costsPence per kWh4.03.02.01.0Data from Department of Energydigest of U.K. energy statistics(price to large industrial consumers)ElectricityGas oilHeavy fueloilGasRunning costs10050Pence per thermCoal01972 1982 199201999Figure 23.1 Energy prices since 1972period 2008±12, and in addition has pledged to reduce carbon dioxide emissions to 20%below 1990 levels by 2010. The Climate Change Levy, a tax on energy use, was announcedin March 1999 and became effective from April 2001. Initially, the levy will apply tocommercial and industrial users, not domestic, at rates reflecting the carbon intensity ofthe various fuels, for example for the first year at least the levy applied will be:ElectricityGasCoalLPG0.43 p/kWh0.15 p/kWh0.15 p/kWh0.07 p/kWhVarious capital allowances and exemptions from the levy are available as part of thegovernment's package to encourage investment in energy efficient installations and use ofrenewable energy sources. For example, for the first period the following are eligible forenhanced capital allowances enabling 100% off-set in the first year, subject to meeting theeligibility criteria set by the DETR (DEFRA since the reorganisation of governmentdepartments in 2001).. combined heat and power. boiler plant, equipment and controls. efficient motors. variable speed drives. refrigeration plant, equipment and controls. thermal screens. pipe insulation, and. lighting products and controls.The latest edition of Part L of the Building Regulations, Conservation of Fuel and Powerbecomes effective from April 2002 and will further reinforce the quest for energy conservation.