Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Government's energy efficiency initiatives plagued by fragmented, stop-go implementation track record.
Conclusion
In its 2022 Autumn Statement the Chancellor announced new funding of £6 billion from 2025 to 2028 to improve energy efficiency for households, business and the public sector. The Chancellor announced that an Energy Efficiency Taskforce would be charged with improving energy efficiency in the UK by reducing energy consumption from buildings and industry by 15% by 2030, compared to 2021 levels. The Department told us that the Taskforce would align incentives across the private sector, households and government. In March 2023, government announced a further £1.4 billion to support energy efficiency, including for low-income households.69 However, government does not have a successful track record of implementing energy efficiency measures. In December 2021, we reported that government has previously implemented a number of energy efficiency schemes aimed at private domestic housing, for example The Green Deal and the Renewable Heat Incentive, and this fragmented, stop-go activity has hindered stable long-term progress towards government’s energy efficiency ambitions.70
Government Response Summary
The government agrees with the committee's observation, stating the points raised are already implemented through its existing strategies that use modelling scenarios and policies to encourage energy efficiency and behavioural change, as detailed in the Carbon Budget Delivery Plan.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The department has modelled two potential scenarios to help estimate future power sector demands: the Net Zero Higher1 scenario, which explores the impact of using widespread electrification to support transport, heating, and industry decarbonisation; and the Net Zero Lower scenario, which explores the impact of using low-carbon hydrogen more extensively. Both scenarios take account of the underlying socioeconomic drivers of energy demand (such as GDP and population growth) and are consistent with the department’s Carbon Budgets and for achieving net zero emissions by 2050. Full details of the modelling and assumptions are in the technical annex to the Net Zero Strategy. 6.3 Through its range of sectoral models, the department then ensures it takes account of the policies and proposals required to achieve its net zero goals. While the policy mix in each scenario will depend on the net zero pathway taken, consumer choices and energy efficiency measures will play a significant role in achieving carbon savings. For instance, the high electrification scenario assumes high adoption of electric heat pumps and electric vehicles, while energy efficiency measures (such as insulation and more efficient appliances) reduce energy demand. The government’s policies aim to take into account consumer preferences and to follow natural replacement cycles, whilst supporting the infrastructure needed to make such transitions, and incentivising behavioural change. Full details are set out in the government's Carbon Budget Delivery Plan.