Treasury written question – answered at on 21 October 2022.
To ask the Chancellor of the Exchequer, whether he has had recent discussions with (a) Cabinet colleagues and (b) industry stakeholders on the potential merits of providing relief for investment expenditure by low-carbon electricity generators in the cost-plus revenue limit facility in the Energy Prices Bill that are commensurate with those in the Energy (Oil and Gas) Profits Levy Act 2022.
The Chancellor has regular discussions with Cabinet colleagues on a range of subjects, including energy policy. Discussions among Cabinet colleagues are considered confidential. No specific conversations have happened between the Chancellor and industry stakeholders on this topic, however Government has been working closely with industry on the detail of the Cost-Plus Revenue Limit, ahead of it coming into force from the start of 2023.
The temporary Cost-Plus Revenue Limit should allow generators to cover their operational and remaining capital costs, plus, allow a margin to enable the industry to receive an appropriate revenue above this that reflects their investment commitment and risk. Increasing domestic generating capacity is critical to our security of supply, and the government remains committed to supporting investment into the renewables sector. The next allocation round of the government's flagship Contracts for Difference support scheme for the deployment of new low carbon electricity generation will launch in 2023 as planned.
Yes3 people think so
No1 person thinks not
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