Tag Archives: levy control framework

Why this week’s budget shouldn’t ignore the UK’s yawning low carbon power gap

Electricity Pylon - UK standard overhead power line transmission tower at sunset.This year the spring budget comes at an odd time for all things low carbon in the UK. In February, the government published its industrial strategy, setting out its clean growth aims as part of Theresa May’s flagship domestic economic policy. By the beginning of the summer, the government will produce a ‘clean growth’ plan, outlining how the UK will meet its fourth and fifth carbon budgets (covering 2023-32).

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What’s wrong with government renewables support and how to get it right

Wind Turbines for Generation of Renewable Energy in the Countryside of EnglandFive years since the establishment of the levy control framework (LCF), the government’s main tool to manage spending on clean energy, the National Audit Office (NAO) has provided some useful insights into its performance to date. While media coverage jumped to highlight its most negative claim, that renewables will cost households £17 more than planned in 2020, it failed to report the rest of the story: that energy bills overall will actually be lower in 2020, by an average of £38.

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How to get UK energy and climate policy back on track

21660736191_b33a880c4d_zSometimes it takes an outsider to reveal an uncomfortable truth. In his speech this week to Green Alliance’s Beyond Paris event, held in association with the CBI, Al Gore held up a mirror to the UK and it wasn’t pretty.

He described a UK out of step with the new found ambition of China and the US on green growth, a welter of low carbon energy policies being cancelled and a prime minster who is not providing public leadership on climate action. An audience of over 400 studiously phlegmatic business and NGO leaders got to their feet and gave him a standing ovation. It must have been a first for a buttoned up London policy audience. Read more

5 things you should know about government and your energy bill

Energy bills are back in the news, with the Office of Budget Responsibility calculating new figures for the cost of low carbon power, the Competition and Markets Authority investigating energy companies, and both IPPR and Policy Exchange releasing reports in the past few weeks. With so much to debate, and a lot of seemingly conflicting numbers to grasp, here are five things you should know:

1. The levy control framework (LCF) makes up three per cent of the average energy bill.
The claim that government controls a large proportion your energy bill rests mainly on the costs of electricity and gas networks, which make up around 22 per cent of bills. In contrast, efficiency policies, which reduce consumption, and therefore lower bills, make up around three per cent. Low carbon power, covered by the levy control framework, also makes up just under three per cent of the bill. So called ‘policy costs’ are, therefore, mostly due to networks, not low carbon power. Read more

Low carbon infrastructure is vital to UK investment ambitions

Boat in offshore windfarmGeorge Osborne has two main objectives for government expenditure as chancellor: eliminate the deficit by cutting day to day spending and increase investment by prioritising capital spending.

As public expenditure has been reduced the chancellor has looked to the private sector to make up the shortfall.  So far, this strategy has worked: 2010-14 saw cumulative growth in GDP of seven per cent, helped considerably by £40 billion growth in the private sector investment component of GDP over the same period, a rise of 16 per cent.  This level of business investment was one of the strongest sources of growth the last parliament. Read more