Question

To ask the Secretary of State for Energy and Climate Change, what the effect of schemes in the Levy Control Framework was on average annual household energy bills in each of the years from 2010 to 2014.

In order to help ensure that policies achieve their objectives cost effectively and affordably, the Government introduced a Levy Control Framework to control levy funded spending by DECC at Budget 2011. Over 2010 to 2014 the Levy Control Framework covered the Renewables Obligation, Feed-in Tariffs and the Warm Home Discount.

The table below sets out the estimated average impact on household energy bills over 2010 to 2013. Figures on spend for 2014 are not yet available.

Estimated average impact on household energy bills from policies in the Levy Control Framework (real 2012 prices)1

It should be noted that this table only reflects the costs of these policies on bills. Renewable generation supported by RO and FITs helps put downward pressure on wholesale electricity prices, because they have very low operating costs.

[1] These estimates are consistent with the methodology used in the Government’s publication on the impacts of energy and climate change policies on energy prices and bills (https://www.gov.uk/government/publications/estimated-impacts-of-energy-and-climate-change-policies-on-energy-prices-and-bills)