Recommendation 18

Although the Department was unable to tell us when bill payers would see lower bills as a result of investment in zero and low-carbon generating infrastructure, it highlighted recent analysis by Ofgem that renewables funded by contracts for difference are reducing annual household bills by an average of £54.57 However, it acknowledged that in the context of recent unprecedented high wholesale gas prices, which are contributing to the increased cost-of-living, the benefit to consumers may seem inconsequential.58 The Department highlighted that, as the electricity system accommodates more projects with contracts for difference, this reduction in bills should increase.59 51 Department for Business, Energy & Industrial Strategy, Net Zero Strategy: Build Back Greener, 19 October 2021; C&AG’s Report, para 2.18 52 C&AG’s Report, para 2.17 53 C&AG’s Report, paras 12, 2.17 54 Q 89; C&AG’s Report, paras 1.15–1.16, Figure 10 55 Qq 87, 90–91 56 Qq 90–92 57 Q 92 58 Qq 93–94 59 Qq 89, 92–94 14 Decarbonising the power sector