PowerGen offer on CO2 gets short shrift

Electricity generator PowerGen has promised to stabilise its carbon dioxide emissions at 1990 levels by 2000 - on condition that the proposed EC carbon/energy tax does not go ahead. The offer has been derided by environmentalists and its main competitor, National Power.

PowerGen's pledge was made when it joined six other European electricity producers - including Scottish Power - to put forward an alternative to the proposed EC tax on 20 May. The seven companies generate about 25% of the Community's electricity output. About 70% of their production comes from coal and lignite.

The companies are opposing the tax because they claim it would be a "high-cost and ineffective" method of curbing CO2

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