SSE expects that such a package should feature support for the price of carbon dioxide emissions allowances from around 2014, when the reform package is expected to be introduced, designed so that the overall price remains within a defined trajectory.
It will also feature a mechanism to reward all generation capacity, which is available to produce electricity, thereby helping to ensure that enough appropriate capacity is retained and built to safeguard the security of the electricity system as the presence of inflexible generation increases.
Additionally, it will consist of an emissions performance standard for new electricity generating plant to ensure that carbon dioxide levels do not exceed a permitted level, which should be consistent with the need to achieve statutory emissions reductions targets while maintaining security of electricity supply.
