Electricity Generation: Subsidies

(asked on 2nd June 2023) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, how much the Government spent on subsidies to electricity generators last year.


Answered by
Graham Stuart Portrait
Graham Stuart
This question was answered on 12th June 2023

The latest forecasts for 2022/23 are:

  • Renewables obligation - £6.9bn
  • Contracts for difference - Electricity Generators paid back £0.1bn
  • Capacity market - £0.7bn

The total scheme value for Feed-in-Tariffs scheme was £1.6bn in 2021/22.

These schemes support security of supply and decarbonisation and in response to extraordinary returns by low-carbon generators, the Government introduced the Electricity Generator Levy.

Sources:

OBR - 'Table 2.8 - Environmental Levies' in the March 2023 Economic and Fiscal outlook - supplementary fiscal tables: receipts and others' https://obr.uk/efo/economic-and-fiscal-outlook-march-2023/#annex-a.

Ofgem's 2021-22 Feed-in-Tariff annual report: https://www.ofgem.gov.uk/publications/feed-tariff-fit-annual-report-2021-22#:~:text=It%20presents%20statistics%20on%20the,our%20audit%20and%20compliance%20programme

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