Question

To ask the Secretary of State for Energy and Climate Change, which levy control framework constraints that have required him to move an early administrative allocation model for Contract for Difference auctions to an auction arrangement.

The reasons for introducing competition for Contracts for Difference earlier than previously proposed are the potential to improve value for money (including by managing expenditure within the Levy Control Framework cap) and drive innovation; and because the strong development of the renewables pipeline has helped to create appropriate conditions for competition. In developing our proposals we have also been mindful of the final EU Guidelines on State aid for environmental protection and energy 2014-20 published on 9 April 2014.