Asked by: Teresa Pearce (Labour - Erith and Thamesmead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, when her Department will publish its most recent assessment of the effect of energy and climate change policies on energy prices and bills.
Answered by Andrea Leadsom
The Government is committed to making energy more affordable, supporting a more competitive, innovative, and smarter energy system that drives down bills. At the last Autumn Statement, the government also set out action to reduce the projected impact of policies on average household energy bills by around £30 a year from 2017.
The Department intends to publish, in due course, an update on the projected costs of policies funded through supplier levies and obligations that impact consumer energy bills. In addition, the department continues to assess the impact of individual policy proposals on the energy bills of various consumers (including households and businesses), which it sets out in relevant policy impact assessments, available online at www.gov.uk.
Asked by: Teresa Pearce (Labour - Erith and Thamesmead)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the potential merits of raising the level of support offered through the Contract for Difference for Hinkley Point C as a result of low wholesale energy prices.
Answered by Andrea Leadsom
The Contract for Difference mechanism provides increased price certainty to generators regardless of wholesale electricity sale prices, thereby incentivising investment in low carbon generation. It does this by paying the generator the difference between the strike price and the market reference price (a composite of wholesale price indices) for electricity sold into the market for the duration of the contract. The generator will make difference payments back to the Low Carbon Contracts Company should the market reference price rise above the strike price.
The strike price for the Hinkley Point C project was agreed in October 2013 and is £92.50/MWh. If EDF take a Final Investment Decision in relation to Sizewell C, the strike price for Hinkley Point C will be reduced to £89.50/MWh.