Department of Energy and Climate Change: Public Expenditure

(asked on 10th December 2015) - View Source

Question

To ask the Secretary of State for Energy and Climate Change, how much overspend against original estimates within the levy control framework has arisen from variations in (a) performance of offshore wind, (b) levels between strike price and reference price and (c) variations in allocations feed in tariff payments for solar PV installations in each of the last three years.


Answered by
Andrea Leadsom Portrait
Andrea Leadsom
This question was answered on 16th December 2015

We do not break down published information on components of Levy Control Framework (LCF) spend to the level of detail requested, due to potential disclosure of commercially confidential information.

On 25 November 2015, the Office for Budget Responsibility (OBR) published LCF projected spend of just under £9bn in 2020/21 (see Tables 1 and 2 below)1. Between the projections Government published in November 20142 and this forecast, we have undertaken analysis to make changes to many assumptions, including technology-specific factors (including offshore wind), fossil fuel prices and electricity demand3. Collectively, changes in these factors have all affected overall estimates of LCF spend. However, we do not provide published estimates of how much is attributable to each individual factor. DECC will publish a further update to its projections, including the underpinning assumptions, in 2016.





Annex A


Table 1: OBR November 2015 main projections were as follows:

Policy (£m, nominal prices)

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

RO

3,850

4,615

5,375

5,855

6,035

6,230

FiTs

1,325

1,515

1,700

1,880

2,055

2,220

CfDs

15

225

545

1,095

2,225

2,805

Total

5,190

6,355

7,620

8,830

10,315

11,255

Figures are rounded to the nearest five million pounds. Totals may not sum due to rounding.


Table 2: OBR November 2015 main projections in 2011/12 prices:


£m, 2011/12 prices

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

RO

3,360

3,990

4,555

4,820

4,820

4,820

FiTs

1,155

1,310

1,440

1,550

1,640

1,720

CfDs

15

210

500

980

1,950

2,415

Total

4,530

5,505

6,495

7,350

8,415

8,955

Figures are rounded to the nearest five million pounds. Totals may not sum due to rounding.


[1] Note that OBR publishes figures in nominal terms, as opposed to our figures which are in 2011/12 real prices. Both sets of figures are attached at Annex A

2 Annual Energy Statement, page 73, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/371388/43586_Cm_8945_print_ready.pdf

3 Data on fossil fuel prices and electricity demand assumptions have recently been published online at https://www.gov.uk/government/publications/fossil-fuel-price-projections-2015 and https://www.gov.uk/government/publications/updated-energy-and-emissions-projections-2015 respectively.


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