Fifty-Ninth Report - Decarbonising the power sector
Select Committee
Public Accounts Committee
HC 1003
21 June 2023
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Fifty-ninth report from Session 2022-23 · published 24 Sep 2023
Recommendations & Conclusions
5 results
5
Recommendation
Rejected
Publish delivery plan information on decarbonisation cost impact for energy bill payers and taxpayers.
Recommendation
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 …
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Government Response Summary
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
Significant investment in power sector lacks clear assessment of spending timelines and funding
Conclusion
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 …
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Government Response Summary
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
Nascent technologies for decarbonisation will incur significant costs for taxpayers and consumers
Conclusion
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 …
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Government Response Summary
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
Long-term consumer bill reductions from renewables seem inconsequential amid high wholesale prices
Conclusion
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 …
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Government Response Summary
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
Department exploring fundamental electricity market reform to reduce long-term consumer costs
Conclusion
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 …
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Government Response Summary
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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