Written questions, answers and statements

Electricity Generation: Contracts

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Question for Department for Energy Security and Net Zero

UIN 10360, tabled on 18 January 2024

Question

Dr Alan Whitehead
Labour
Southampton, Test
Commons

To ask the Secretary of State for Energy Security and Net Zero, if she will publish (a) the estimated cost to the public purse of contracts for difference payments to electricity generators in financial year 2022-23 and (b) the actual (i) cost and (ii) savings to the public purse of contracts for difference payments to electricity generators in financial year 2022-23.

Answer

Andrew Bowie
Conservative
West Aberdeenshire and Kincardine
Commons

Answered on

24 January 2024

The Contracts for Difference (CfD) scheme is funded by the Supplier Obligation, a statutory levy on all GB-based licensed electricity suppliers. Typically, we expect these costs to be passed through from suppliers to consumers via electricity bills. The Office for Budget Responsibility publishes outturn and forecast of Environmental Levies, which includes the Contracts for Difference Scheme. In the year 2022-23, the Office for Budget Responsibility estimates that the outturn cost of the scheme was -£0.1 billion, i.e. a saving to electricity consumers.

Answered by

Department for Energy Security and Net Zero
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