Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government whether they have undertaken an impact assessment of the decision to cap the supply of projects in the Clean Power 2030 Action Plan and the risk of driving up bills by reducing competition.
The capacity ranges set out in the Action Plan are not intended to cap supply of projects but, amongst other things, help prioritise the reform of the connections process. Today’s connections queue is significantly oversubscribed, with large volumes of some technologies and less of others.
It is vital that Contracts for Difference (CfD) continues to offer value for money to consumers and continue to deliver low prices, which is why auctions are designed to keep the process competitive.
Our reforms are aimed at improving the ability of the CfD mechanism to support a large volume of renewable capacity – particularly offshore wind – whilst maintaining competition, which provides value for money for consumers.