Financial Times FT.com

Carbon trading

Power groups in the dark over auction plan

By Fiona Harvey, Environment Correspondent

Published: October 31 2007 03:29 | Last updated: October 31 2007 03:29

Electricity producers have been left in the dark over government plans to force them to pay for carbon dioxide emissions from next year.

The government said this year it would auction off some of the permits allocated to electricity compan­ies under the second phase of the European Union’s emissions trading scheme. But no plans for such an auction have been an­nounced, although the second phase begins on January 1, leaving electricity companies to make guesses on how the auction will work.

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