Source · Select Committees · Business and Trade Committee
Recommendation 25
25
Deferred
Mandate Ofgem to thoroughly investigate Drax biomass sourcing and report findings to committee.
Recommendation
The Committee has been concerned to hear reports about alleged misreporting by Drax to Ofgem in order to draw down public funds. We note that Ofgem has started a special audit process. We call on Ofgem to ensure a thorough investigation of the evidence that supported Drax submissions, specifically in respect of the sourcing of wood biomass, and for Ofgem to request access to any internal or independent external audits undertaken at Drax to investigate this issue. We ask Ofgem to report back to the Committee once this investigation has concluded. (Paragraph 127) 104 Decarbonisation of the power sector
Government Response Summary
The government's response details investments in energy efficiency, plans for local energy planning, new consumer advice services, and work on improving EPCs, completely ignoring the committee's call for Ofgem to investigate alleged misreporting by Drax.
Government Response
Deferred
HM Government
Deferred
81. Reducing energy demand is a key aim of the Government, which was set out in the Net Zero Growth Plan. The Government’s aim is to reduce, by 2030, final energy consumption from buildings and industry by 15%. The Energy Efficiency Taskforce has been established to lead this ambition, with a focus on stimulating private investment and increasing green finance options, as well as galvanising supply chains and increasing public and business engagement with energy efficiency. 82. The Government is already investing £6.6 billion in energy efficiency over this parliament, with further support launching this summer through the £1 billion Great British Insulation Scheme. Further details of the additional £6 billion of funding from 2025–2028 will be announced in due course. This funding will provide long-term investment certainty, supporting the growth of supply chains, and ensuring we can scale up our delivery over time. 83. The Government and Ofgem recognise the need for a local area-level approach to deliver the best network for each local area, by responding to their specific needs. To achieve this, the Government and Ofgem are working together to consider the role that local and regional energy planning could play in delivering net zero, as well as supporting efficient network planning. This includes considering the respective roles of national governments, local government, a Future System Operator, distribution network operation and other key stakeholders for energy planning. 84. The Government has also agreed to pilot a devolved approach to building retrofit from 2025 in the devolution deals with Greater Manchester Combined Authority and West Midlands Combined Authority, to test the benefits that this approach can deliver. 85. The Government agrees that more direct communication is required with consumers to grow awareness of energy efficiency benefits. To support this, the Government has Decarbonisation of the power sector: Government Response 17 launched a phoneline service and consumer advice website as part of a three-tiered consumer advice and information offer, which will include local in-person advice in due course. 86. On EPCs, work is ongoing on proposals to improve EPC metrics, and the Government intends to consult on these, taking account of recently published proposals from the Climate Change Committee. Furthermore, the Government has an ongoing programme of user research to improve the way in which information is presented on Energy Performance Certificates. Delivery risks to the Government’s 2035 target