PARLIAMENTARY WRITTEN QUESTION
Department of Energy and Climate Change: Public Expenditure (16 December 2015)

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the total projected expenditure on (a) the feed-in-tariff scheme, (b) contracts for difference, (c) the Renewable Heat Incentive and (d) the capacity market mechanism in each year between 2016 and 2021 on her Department's current estimate of wholesale prices.

Asked by:
Matthew Pennycook (Labour)

The Office for Budget Responsibility’s (OBR) report, published alongside the Autumn Budget on 25 November includes projected expenditure on individual environmental levy schemes, as well as the Renewable Heat Incentive, as summarised in table 1 below. These are based on DECC’s current published estimates of wholesale prices, available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/477625/Annex-m-price-growth-assumptions.xls.

Table 1: November 2015 forecast of expenditure

£ billion (nominal prices)	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21
Feed-in Tariffs1	1.3	1.5	1.7	1.9	2.1	2.2
Contracts for Difference	0.0	0.2	0.5	1.1	2.2	2.8
Renewable Heat Incentive	0.42	0.64	0.78	0.90	1.01	1.15
Capacity market	0.0	0.0	0.0	0.6	1.0	1.1

Note: 1. Forecasts do not include the outcome of the consultation on feed-in-tariffs.

Source: OBR, November 2015. An updated set of LCF projections as well as the assumptions underpinning the latest forecasts will be published in due course.

Answered by:
Andrea Leadsom (Conservative)
5 January 2016