Mr. John Melvin:

All of these developers are taking risk. That is the business of developers and businesses. The function of the HE CHP certification scheme is to certify the quantity every year of electricity generated that meets this economic test. Someone could build a plant beside a milk plant and the milk plant might close. There is a risk that the user of the heat will close or will not use as much heat as had been anticipated. In those circumstances, we would have to determine how much heat was used and if there was an economic need for all of that heat.

Similarly, investors take a risk as to the cost of the fuel. The cost of the fuel could increase to such an extent that the end user no longer wishes to purchase that heat at that price. There is risk. We certify every year to ensure that every year the element of electricity that is certified and is available for that higher price is meeting a true economic need. It can go up and down every year depending on the heat load of the end user and the economics of it. Significant incremental public moneys are available for HE CHP. It is our duty under the legislation to certify the quantities, which can go up and down. What is fixed through the refit scheme is the price for every kilowatt hour that is certified but the quantities that are certified can go up and down depending on market circumstances, the cost of fuel and the desire or throughput of the end user. Those risks still exist.