A STUDY into the merits of a Severn Barrage will also look at a range of options for power from the estuary's tidal range.

National Assembly leaders will be asked by the government to join a cross-Whitehall team to carry out a feasibility study.

The possibility of creating a barrage, which could generate five per cent of the country's electricity, has divided opinion.

Some green campaigners feel it would be environmentally damaging while other people say it would be a good source of renewable energy.

Secretary of State for Business, Enterprise and Regulatory Reform, John Hutton, told Parliament yesterday the study would look at the impacts on the environment, the region and the economy as well as on the energy market.

"The study will look at the range of options for power generation from the Severn Estuary tidal range, including barrages, lagoons and other technologies."

Mr Hutton announced he will be hosting a parliamentary forum next month for MPs and peers to discuss it.

He said if the outcome of the study was to proceed, further extensive and detailed work would be needed.