On Tuesday, MPs will ask ministers what Clean Power 2030 will cost and how much policy levies add to household electricity bills. We should be able to see how the first figure feeds into the second.
Andrew Snowden MP has asked for the Government’s estimate of the total system costs of achieving Clean Power 2030. Rebecca Smith MP has asked what environmental and social levies add to domestic electricity bills. Both questions are on the published list for Energy Security and Net Zero questions on Tuesday 17 November, starting at 11.30 am. Read the Commons questions.
What will the whole system cost?
The Government’s Clean Power 2030 Action Plan estimated around £40 billion a year in investment on average between 2025 and 2030, much of it private. The plan also cited NESO’s analysis that the transition could be delivered at similar electricity system costs to those at the time, with scope for lower costs and bills. An investment estimate tells us how much capital may be needed. Households need to know how much of that investment will be recovered through bills, over how many years, and how savings elsewhere would affect the total. Read the Government’s Action Plan.
Ministers should publish a breakdown covering generation, grid investment, the cost of keeping backup capacity available, and the cost of balancing supply and demand. Show the figures against a realistic alternative that meets the same reliability standard. Then show how the answer changes if gas prices are higher or lower, or if key grid upgrades arrive late.
What happens when generation is ready before the grid?
In September, the National Audit Office warned that delays to Britain’s £70 billion electricity transmission upgrade could raise costs for consumers. MPs pressed officials on that risk in October. If a wind farm is generating in an area where the lines are already full, NESO may have to pay to turn down generation there and pay for replacement power elsewhere. The longer that bottleneck lasts, the longer consumers can be exposed to those costs. Read the National Audit Office findings and the committee transcript.
For each major grid upgrade at risk of delay, publish the expected delivery date, the generation it will unlock and the estimated cost of a year’s slippage. That would give Parliament and the public a way to judge the consequences of delays.
What will households pay across both bills?
The Commons Energy Security and Net Zero Committee has recommended moving the remaining energy transition policy costs from electricity to gas bills. That could reduce the electricity bill while increasing the gas bill. A household heating an older, draughty home with gas needs to see what happens to its combined bill. Ministers should publish the effect for different household types, including those already struggling to pay. Read the committee’s recommendations.
Make them show the evidence
Tuesday’s questions are a chance for ministers to put the numbers on the record. We want to see how much the policy costs, what savings the Government expects, who pays and what happens if the timetable slips.
Our petition calls for Parliament to consider an independent national assessment of the costs and impacts of the Climate Change Act targets, including household bills, fuel poverty, industry, energy security and land use. It has passed the threshold for a Government response. Sign and share petition 780321.
Featured photograph: Existing National Grid infrastructure at Skelton Grange, Leeds. Stephen Craven / Geograph, CC BY-SA 2.0.
Leave a Reply