Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he had made an assessment of the potential merits of a regulated asset based model to finance the proposed Swansea Bay tidal lagoon.

Contracts for Difference are the main policy vehicle supporting the delivery of low carbon electricity. They provide long-term price stabilisation for low carbon plant, allowing investments to come forward at a lower cost of capital and therefore lower cost to consumers. This was the basis under which the proposed Swansea Bay Tidal Lagoon project was considered and assessed.

The analysis clearly showed that the project did not represent value for money for consumers and tax payers.