Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Committee took evidence from DESNZ and Ofgem on government’s support for biomass.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (the Department) and the Office of Gas and Electricity Markets (Ofgem) on the government’s support for biomass.1
Government Response Summary
The government agrees and is reflecting on current evaluation and audit processes to incorporate lessons into future plans, including the new Drax contract. This work will be strengthened by the forthcoming appointment of an independent sustainability advisor.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation as part of a commitment to continuous improvement. As part of this commitment, the government is reflecting carefully on all current evaluation and audit processes, and incorporating relevant lessons learned into our plans for the new contract with Drax (and the Common Framework consultation) as part of a commitment to continuous improvement in the sustainability regime for biomass and associated monitoring and assurance. The government has identified opportunities to strengthen this regime ahead of signing the new contract and actively seeks to learn from international best practice and evolving international regulatory frameworks. This work will be strengthened further by the forthcoming appointment of an independent sustainability advisor to support the government, Ofgem, and the Low Carbon Contracts Company (LCCC) on biomass sustainability policy and practice. However, it is important to recognise that the assurance arrangements under the current Renewables Obligation/Contract for Difference schemes that UK biomass plants operate under are settled until 2027 at the earliest, and the government has already worked closely and extensively with both Ofgem and external consultancies to evaluate these arrangements. Moreover, the recent Ofgem investigation into Drax’s sustainability reporting – which led to Drax making a £25 million voluntary redress payment – is evidence that the current assurance regime is working well. Breaches of sustainability reporting under the existing arrangements are thoroughly investigated, and robust action is taken when breaches are found.