Alan Whitehead – 2015 Parliamentary Question to the Department for Energy and Climate Change
The below Parliamentary question was asked by Alan Whitehead on 2015-12-10.
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.
Andrea Leadsom
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.
