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NFFO FIVE YEAR WINDOW EXPLAINED

The author wishes to point out that the statement that NFFO 3 contracts "need not be completed until 1999" in the article, Manipulated Economics (Windpower Monthly, 11(2):27) could be misleading to readers. The five year "window" was to give generators time in which to obtain planning and other consents, finance, etc, and to nominate their commissioning dates accordingly in entering into the contracts. Another point is that although REB 5 stated that the minister proposed that the order would cover 20 years, it has been profiled by the Department of Trade and Industry to match the contract periods available and in fact terminates on August 28, 2013.

D. Walton, General Manager, Non-Fossil Purchasing Agency Limited, Newcastle Upon Tyne, England

Regarding your statement that NFFO 3 contracts "need not be completed until 1999" in the article, Manipulated Economics (Windpower Monthly, February 1995). I wish to point out that this statement could be misleading to your readers. The further guidance given in Renewable Energy Bulletin No 5 (REB 5) indicated that the NFFO 3 order would cover a period of 20 years to enable the Regional Electricity Companies to offer generators contracts for a period of up to 15 years. The five year "window" was to give generators time in which to obtain planning and other consents, finance, etc, and to nominate their commissioning dates accordingly in entering into the contracts. If the generating station is not commissioned within two years of the nominated commissioning date, the contract ceases to be of force and effect unless the generator and NFPA agreed to the contrary.

I should also point out that although REB 5 stated that the minister proposed that the order would cover 20 years, it has been profiled by the Department of Trade and Industry to match the contract periods available and in fact terminates on August 28, 2013 (see Statutory Instrument 1994, No 3259, as amended by Statutory Instrument 1995, No 68). I trust this explains the situation.

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