Source · Select Committees · Environmental Audit Committee
Recommendation 13
13
Deferred
Expedite Ofgem's programme to deliver market-wide half-hourly settlement and report progress.
Recommendation
We further recommend that Ofgem expedite its programme to deliver market-wide half-hourly settlement. We expect Ofgem to provide a progress report in response to this recommendation, setting out current barriers to delivery of this objective, identifying measures to overcome them, and indicating a target date for final delivery. (Paragraph 67) Enabling sustainable electrification of the economy 45 Developing an electricity grid ready for net zero
Government Response Summary
The government's response does not address the recommendation for Ofgem to expedite market-wide half-hourly settlement or provide a progress report. Instead, it discusses financial support and incentives for electricity network manufacturing supply chains, promising an update on wider incentives shortly.
Government Response
Deferred
HM Government
Deferred
The Government agrees that additional incentives will be key to ensuring the growth of a more resilient supply chain for manufacturing electricity networks critical components. The Government will continue to review options including financial support. For example, the Contracts for Difference (CfD) Clean Industry Bonus (CIB) launched on 12 November will provide a bonus on CfD payments to fixed and floating offshore wind developers who choose to invest in cleaner manufacturing facilities, or invest in manufacturing assets in the UK’s poorest communities. This includes the electricity networks infrastructure these developers will procure for connection to the onshore grid. As outlined in the response to Recommendation 12, the full approach to supporting supply chains will be outlined in the Industrial Strategy. We recognise that there is no single solution to overcome the complexities of establishing an effective supply chain for the electricity network, and that funding support will not be a “silver bullet”. Instead, further funding interventions may form part of a wider financial package from government 12 https://www.ofgem.gov.uk/decision/riio-3-sector-specific-methodology-decision-gas- distribution-gas-transmission-and-electricity-transmission-sectors including making use of freeports, and other support and tools from initiatives such as the National Wealth Fund (formerly the UK Infrastructure Bank (UKIB)). The wider financial landscape is currently developing at pace, and we hope to update on how these wider incentives will function shortly. In addition, the other actions outlined in response to