Decarbonising the power sector

Public Accounts Committee Closed Inquiry
Opened: 30 Jan 2023 Closed: 24 Sep 2023 Parliament page
In October 2021 the Government set a target to decarbonise the power sector by 2035, subject to security of supply. But demand for electricity is expected to increase significantly in that timeframe as other sectors, such as transport and heating in buildings, switch to electricity to reduce emissions. Decarbonising in … Read more
3 Recommendations
20 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 6 events
24 Sep
2023
Report published
11 Jul
2023
Correspondence
21 Jun
2023
Report published
17 Apr
2023
Correspondence
23 Mar
2023
Oral evidence
23 Mar
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
23 Mar 2023
View on parliament.uk
Decarbonising the power sector
Ashley Ibbett · Department for Business, Energy and Industrial Strategy Jeremy Pocklington CB · Ministry of Defence Jonathan Mills · Department for Energy Security and Net Zero
Title HC No. Published Items Response
Fifty-Ninth Report - Decarbonising the power sector HC 1003 21 Jun 2023 23 Responded
Recommendations & Conclusions
5 results
Clear
5 Recommendation Rejected
Fifty-Ninth Report - Decarbonising…
Publish delivery plan information on decarbonisation cost impact for energy bill payers and taxpayers.
The Department has not yet set out how it expects decarbonising the power sector will impact energy bill payers and taxpayers. While government recognises that initially it will rely heavily on private investment to fund the clean energy transition, the … Read more
Government Response
The government rejects the recommendation, stating that future costs are uncertain and that it already publishes information on cost impacts for specific policy interventions in Impact Assessments and monitors energy prices via Quarterly Energy Prices reports.
HM Treasury
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16 Conclusion Rejected
Fifty-Ninth Report - Decarbonising…
Significant investment in power sector lacks clear assessment of spending timelines and funding
While government has estimated that £280 to £400 billion of public and private investment in new generating capacity will be needed by 2037, it has not yet assessed when there may be periods of higher spending and how this will … Read more
Government Response
The government rejects the committee's observation, stating its focus on consumer security, affordable bills, and its current approach to policy decisions, cost impacts, and monitoring energy prices.
HM Treasury
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17 Conclusion Rejected
Fifty-Ninth Report - Decarbonising…
Nascent technologies for decarbonisation will incur significant costs for taxpayers and consumers
We questioned the Department as to how it is planning to protect consumers and taxpayers from the cost of decarbonising the power sector, particularly when a challenge of proceeding quickly is that deploying nascent technologies before there is a competitive … Read more
Government Response
The government rejects the committee's observation, outlining its focus on consumer security by reducing and affording bills and describing its approach to managing policy interventions, cost impacts, and monitoring energy prices.
HM Treasury
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18 Conclusion Rejected
Fifty-Ninth Report - Decarbonising…
Long-term consumer bill reductions from renewables seem inconsequential amid high wholesale prices
Although the Department was unable to tell us when bill payers would see lower bills as a result of investment in zero and low-carbon generating infrastructure, it highlighted recent analysis by Ofgem that renewables funded by contracts for difference are … Read more
Government Response
The government explicitly disagrees with the committee's (implied) recommendation, stating its focus is on consumer security by bringing down bills. It highlights past support schemes and its long-term strategy, Powering Up Britain, to deliver wholesale electricity prices amongst the cheapest in Europe.
HM Treasury
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19 Conclusion Rejected
Fifty-Ninth Report - Decarbonising…
Department exploring fundamental electricity market reform to reduce long-term consumer costs
The Department is also currently considering fundamental market reform of how electricity is bought and sold, through which it hopes to reduce costs of electricity to consumers over the long term. The Department expects reform of the retail market to … Read more
Government Response
The government rejects the committee's observation, stating its focus is on consumer security by reducing and affording bills, and explaining its approach to policy interventions, cost impacts, and monitoring energy prices.
HM Treasury
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Government Response AI assessment · 22 of 3 classified
Accepted 15
Acknowledged 1
Not Addressed 1
Rejected 5
Total 3 recs + 20 conclusions
Correspondence 2 letters
11 Jul 2023 Correspondence from James Armstrong, Managing Partner, Bluefield Partners LLP, re Bluefield Partners LLP submission to Public Accounts Committee inquiry, dated 28 June 2023
Parliament page
17 Apr 2023 Correspondence from Jeremy Pocklington CB, Permanent Secretary, re follow up questions eaised at the Public Accounts Committee on the NAO Office report on Decarbonising the Power Sector, dated March 2023
Parliament page