Tradable Energy Quotas
Mount Pleasant Farmers' Market

TEQs in brief

 

1. TEQs (Tradable Energy Quotas) is an electronic energy rationing system designed to be implemented at the national scale.

2. There are two reasons why such a scheme may be needed:

Climate change: to guarantee achieving national carbon reduction targets.
Energy supply: to maintain a fair distribution of fuel and electricity during shortages.

3. TEQs (pronounced “tex”) are measured in units.

4. Every adult is given an equal free Entitlement of TEQs units each week. Other energy users (Government, industry etc.) bid for their units at a weekly Tender, or auction.

5. If you use less than your Entitlement of units, you can sell your surplus. If you need more, you can buy them. All trading takes place at a single national price, which will rise and fall in line with demand. Buying and selling would be as easy as topping up an Oyster card or mobile phone.

6. All fuels (and electricity) carry a “carbon rating” in units; one unit represents one kilogram of carbon dioxide – or the equivalent in other greenhouse gases – released in the fuel’s production and use.

7. When you buy energy, such as petrol for your car or electricity for your household, units corresponding to the amount of energy you have bought are deducted from your TEQs account, in addition to your money payment. TEQs transactions are generally automatic, using credit-card or (more usually) direct-debit technology.

8. The total number of units available in the country is set out in the TEQs Budget. The size of the Budget goes down year-by-year – step-by-step, like a staircase.

9. The Budget is set by the Committee on Climate Change, which is independent of the Government. The Government is itself bound by the TEQs scheme; its role is to support the country in thriving on the available carbon/energy.

10. Since the national TEQs price is determined by national demand, it is transparently in everyone’s interest to help each other to reduce their energy demand, and to work together, encouraging a national sense of common purpose.

To find out more take a look at the All Party Parliamentary Group on Peak Oil's report into TEQs, or our popular online booklet Energy and the Common Purpose (now on its updated and improved 3rd edition).