There has been a lot of publicity lately about the fact that over the next few years, as our indigenous stocks are depleted, the UK will become a net importer of gas. Gas forms a fundamental part of the Government's future energy strategy. We believe that the role of coal should be considered carefully in the light of concerns about supply security.

Coal-fired plant provides a high degree of supply security, cushioning us against the problems that could occur if alternative fuel supplies get interrupted - something that could happen if we relied on such fuels too much. The Government's Energy White Paper recognises the contribution that coal could make to fuel diversity but is not clear on how that role can be preserved. We believe that the Government needs to recognise more explicitly coal's role in the UK's mix of fuel used for generating power. This will need to be reflected in the way in which it implements environmental measures. Future legislation, in particular European Emissions Trading (EU-ETS) and the revised Large Combustion Plant Directive (LCPD), create an uncertain market for coal and may force premature closure. We continue to work with Government and its Regulators (such as the Environment Agency) to spell out our concerns, for example in finalising the details of how the EU-ETS will be put into practice in the UK.