The National Audit Office (NAO) has begun a review of spending under the Levy Control Framework (LCF), which limits costs of renewable electricity subsidies to consumers, to examine its effectiveness and impact on wholesale energy prices. “We will review how effectively the Framework has met its objectives to date, and how well placed it is to meet these objectives in the future,” the government’s financial watchdog said in a letter dated February 15 in response to the Energy and Climate Change Committee. The LCF is part of government reforms to control consumer energy bills stemming from the UK’s move towards a low carbon economy to meet renewable energy targets.
Platts 24th Feb 2016 read more »
The trade association for the UK energy industry Energy has called on the Government to “urgently review” the Levy Control Framework (LCF), providing clarity to companies and investors. In a report published yesterday (23 February), Energy UK insisted there is an “urgent need to attract much-needed investment” into the power generation sector, given the recent and forthcoming power station closures. It said the Government should review the LCF “as a matter of urgency”, and set out a budget post-2020 “as soon as possible” to encourage investment across a range of technologies, as there is currently a lack of transparency and “no forward view” on which to base investment.
Edie 24th Feb 2016 read more »