Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Committee receives evidence on Department's carbon capture, usage and storage programme
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) on its carbon capture, usage and storage programme.1
Government Response Summary
The government states it has already created business models to provide minimum subsidy, established a Cluster Sponsor Function to monitor progress and risks, and set up assurance and control mechanisms, including a new construction team with monthly reviews.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The Department for Energy Security and Net Zero (the department) has created business models that provide the minimum subsidy required to support the projects, in order to realise the anticipated benefits and positive value for money. The department keeps the allocation of costs and risks between government and projects under review, with the aim of reducing subsidy over the long-term. The department has also established the Cluster Sponsor Function, which has the objective of delivering the strategic benefits from the subsidy in the clusters. It will achieve this by monitoring progress through the cluster construction phase and beyond, identifying mitigating actions where required, and monitoring benefits, costs and cross-chain risks and implementing mitigating actions if required. The department has taken steps to ensure that appropriate assurance and control mechanisms are established to optimise forecasting of spend profiles of projects in the government’s balance sheet and to minimise financial risks. As part of the Cluster Sponsor Function a new construction team has been created, with responsibility for monitoring construction progress and costs, proactively identifying emerging issues and initiating mitigating actions. This includes a dedicated finance lead, whose role is to manage finance processes (including budget management via the department’s finance processes, contingent liabilities, inputs into spending reviews and business planning exercise) for projects on the government’s balance sheet. Reviews will be carried out monthly and will be reported via the Sponsor Function Board, which seeks to resolve issues as they arise to minimise the overall risk to the successful delivery of the project.