Select committee: Economic Affairs Committee

1st Report - Investing in energy: price, security, and the transition to net zero (21 July 2022)

Published 21 July 2022

Economic Affairs Committee UK energy supply and investment Report on parliament.uk ↗

At a glance3 recommendations · Government response published 11 October 2022

The government's response

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

The government's response sets out measures on energy bills, domestic supply and net zero, accepts or notes some recommendations in part, and says some matters are for regulators, companies or the Bank of England.

On onshore wind, it "acknowledges" that more will be needed for net zero and energy security, and says it will "consult on how we do this later this year" for projects with strong local backing in England.
On the Future System Operator, it concludes a public corporation is the most effective model, and says it "could be established by or in 2024", depending on factors including legislation and timelines.
On nuclear life extensions, it says it "has no formal role in these decisions", which are for EDF and the Office for Nuclear Regulation.
On stranded oil and gas assets, it "notes" the Committee's points but believes private companies "are better placed to make judgements on commercial investments".

Read the government's response ↗ Report an error

What the committee recommended 3

4
We recommend that the Government publishes an energy demand reduction strategy. Recommendation · paragraph 31
18
We recommend that the Government encourages schemes to compensate residents for energy projects built in... Recommendation · paragraph 145
19
We recommend that energy security objectives be included in the National Planning Policy Framework alongside... Recommendation · paragraph 146

Sources

1st Report - Investing in energy: price, security, and the transition to net zero (21 July 2022) ↗The committee's report, parliament.uk
Government Response from the Department for Business, Energy & Industrial Strategy to the UK energy and investment supply inquiry ↗The government's response, 11 October 2022, parliament.uk

Recommendations and conclusions 3

4
We recommend that the Government publishes an energy demand reduction strategy. Recommendation · paragraph 31 Recommendation (the committee's words)
We recommend that the Government publishes an energy demand reduction strategy. To strengthen public confidence, the Government should work with the financial sector to provide financing options and increase incentives for investment in energy efficiency measures. In addition, the Government needs to set clear signals so supply capacity can be increased along with steps to support the development of resilient supply chains and workforce skills. It should have a clear, practical delivery plan which learns from the failings of previous initiatives. The strategy should be published as soon as possible.
18
We recommend that the Government encourages schemes to compensate residents for energy projects built in... Recommendation · paragraph 145 Recommendation (the committee's words)
We recommend that the Government encourages schemes to compensate residents for energy projects built in their areas. This already happens for certain onshore wind projects but should be extended to other forms of low-carbon generation, or grid infrastructure.
19
We recommend that energy security objectives be included in the National Planning Policy Framework alongside... Recommendation · paragraph 146 Recommendation (the committee's words)
We recommend that energy security objectives be included in the National Planning Policy Framework alongside the existing climate change objectives.