Yesterday afternoon the Chancellor presented the Government’s Autumn Statement to Parliament. The Statement was short on energy-related announcements, however key points to note are;
- Carbon Price Support – To provide certainty to businesses, the government confirms it is maintaining the cap on Carbon Price Support rates at £18 t/CO2, uprating this with inflation in 2020-21. The government will continue to consider the appropriate mechanism for determining the carbon price in the 2020s.
- Levy Control Framework – The government is committed to decarbonising the economy while limiting costs on bills and will continue to engage stakeholders as it develops an emissions reduction plan. The government is considering the future of the Levy Control Framework which it will set out at Budget 2017. It was expected that a decision would be made on this now as to the future of the LCF beyond 2020 but this has been delayed until next year’s budget.
- The Northern Powerhouse Investment Fund (NPIF) – The NPIF will invest a further £390 million by 2020-21 to support ultra-low emission vehicles (ULEVs), renewable fuels, and connected and autonomous vehicles (CAVs). This includes £80 million for ULEV charging infrastructure, £150 million in support for low emission buses and taxis and £20 million for the development of alternative aviation and heavy goods vehicle fuels.
- Competition and Consumers – A Green Paper is to be published in Spring 2017 that will “examine markets that are not working fairly for consumers”. The Chancellor confirmed that Government “will look carefully over the coming months at the functioning of key markets, including the retail energy market, to make sure they are functioning fairly for all consumers.” Although it is not yet clear whether the Green Paper will extend to the retail energy market.
If you have any questions regarding the Autumn Statement, please call our team on 0345 634 9500 or email us at info@tridentutilities.co.uk