Principles for the formulation of policy for the Electricity System

Electricity system requirements

Requirements in relation to the development of an electricity system include:

1. That the price that customers pay for electricity be affordable and meets the system standards at minimum cost - see Cost.
2. That the supply of electricity will be secure.
   This involves (a) capacity security i.e. that the level of risk of there being insufficient generating capacity to meet peak demand is acceptable - see Security of Supply; (b) fuel security i.e. that fuel will be available to meet demand; (c) transmission security i.e. that power can be delivered to where it is required and (d) that frequency and voltage are held within statutory limits. All these issues have a high level of uncertainty associated with them. They would be reliably addressed as part of a Total System Analysis.
3. That CO₂ emissions will progressively decrease in line with national and European requirements - see emissions.
4. That levels of risk in relation to health and safety will be at acceptable levels.
   Reliable assessments of health and safety risks for all types of generation need to be drawn up so that a balanced view can be made in making policy decisions.
5. That development and operation of the electricity system resources should have a positive effect on the national economy.
   An overarching requirement of the electricity system is that, in order that UK industry be competitive, the cost of electricity to customers should be as low as is practical. A reliable study to seek to ensure this is needed.
6. That developments of the system will be attractive to investors.
   An energy policy, for which the risk has been appropriately controlled, will attract a lower cost of capital than otherwise.
7. That the electricity system facilities will not be unduly intrusive in the landscape.