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Given the increased political salience of environmental constraints on the energy sector at large, and on power generation in particular, some of the principal policy issues which impinge upon the electricity supply industry (ESI) are examined. Particular emphasis is placed on the two most prominent issues: acid rain and global warming. More emphasis is given to supply-side issues rather than demand-side responses (such as least cost planning). The author then examines the major characteristics of the UK's stock of generating plant and some of the means available for the ESI to adjust this stock in the light of both specific environmental and wider political pressures.