Select committee: Environmental Audit Committee

Recommendation 23

4th Report - Accelerating the transition from fossil fuels and securing energy supplies Published 5 Jan 2023 Paragraph 110

Environmental Audit Committee Accelerating the transition from fossil fuels and securing energy supplies All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗

Recommendation (the committee's words)

The British Energy Security Strategy appears to reflect a 20th century approach to energy security, prioritising the construction of big, centralised power generation facilities to meet fixed demand. A move to a smarter, more flexible, digitally-enabled grid, which technological innovations now make possible, holds exciting potential to smooth demand peaks by flexing demand up and down in a way that was hitherto impossible. Developments in this area could have important implications for other elements of the Government’s energy strategy - for instance, how much baseload electricity is necessary and how much grid distribution capacity is needed to connect a more dispersed generation network. We recommend that the Government provides a progress report in 2023 on the joint Ofgem and BEIS Smart Systems and Flexibility Plan and incorporates any relevant actions from this report into its ongoing efforts to enhance energy security and decarbonise the electricity grid.

From: Environmental Audit Committee, 4th Report - Accelerating the transition from fossil fuels and securing energy supplies (HC 109), paragraph 110, 5 January 2023

Government response

The government responded to the whole report on 23 March 2023 (deadline 5 March 2023).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government welcomes the Committee's report and responds mainly by pointing to existing schemes, targets and planned consultations, while declining several recommendations, including a tax allowance for renewable generators and ringfencing Energy Profits Levy revenue for energy efficiency.

On renewable generators' tax relief, it states it "does not accept this recomsmendation" [sic], citing support through Contracts for Difference. On the Energy Profits Levy, it has "considerable fiscal sustainability concerns" about hypothecating revenue for energy efficiency.
On green mortgages, it agrees lenders have "an important role to play" but will publish a response only once policy is "resolved", giving no date. It intends to consult on Energy Performance Certificate and wider buildings framework reforms in 2023.
On the North Sea, it considers the Transition Deal targets "sufficiently ambitious" and says it does "not propose reopening this deal for negotiation", though it will monitor progress closely, including whether "further steps may be necessary".
On energy efficiency funding, it points to £6.6 billion this Parliament and £6 billion of new funding "from 2025 to 2028". It intends to launch ECO+ in spring 2023, "proposed to be worth £1 billion over three years".

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