Since coal is the dirtiest of the main fuels used to generate electricity, cap-and-trade could lead such plants to shut or switch to gas.
Carbon emissions from electricity, capped by the EU Emissions Trading Scheme, would be the same under either approach.
Customers of M&S Energy, which is supplied by SSE, will also benefit from the gas price reduction and the extended gas and electricity price cap.
She particularly criticized Mr. Bush's refusal to call for electricity price caps in California.
can charge for electricity is capped at 4.5 cents an hour, and I can only buy power at 6 cents, I can't compete," Mr. Kaufman said.
A16 Electricity Price Caps Imposed Federal regulators approved broad price controls on electricity sales in California, a decision that reversed a previous stance and departed from Bush administration policy.
In essence, prices for the electricity are capped, but the developers are free to hike their profits by boosting their plants' efficiency.
In a compromise, two of three commissioners of the Federal Energy Regulatory Commission voted to cap electricity prices whenever supplies fall to within 7.5percentt of demand in the state's volatile electricity market.
Politicians often bully regulators to cap electricity prices, causing losses among generators.
(Question: How many 49ers does it take to screw in a light bulb? Answer: None, because the team can't fit the cost of electricity under the cap).
The government has already announced a floor price for carbon, essentially a tax on emissions, and is working through the details of new incentives for low-carbon electricity and a cap on power plant emissions.
