Written question asked by Lord Beecham (Labour), in the House of Lords. It was answered by Lord Marland (Conservative) on Tuesday, 16 November 2010.

Energy: Carbon Emissions

Question: To ask Her Majesty’s Government what assessment they have made of the impact on the public sector in general, and local government in particular, of the decision to retain the estimated £1 billion per annum revenue raised from the sale of carbon reduction commitment (CRC) allowances under the CRC Energy Efficiency Scheme; and what discussions have taken place with councils or the Local Government Group on how this revenue will be allocated.

Answer: The Government decided not to proceed with the recycling of CRC revenues proposed by the previous Administration in order to support the public finances. It also gives a clearer price signal in the scheme which participants have asked for. The impact on the public sector and local government will depend on the extent to which participants reduce their energy consumption before they are required to purchase and surrender allowances. We have delayed the first sale of allowance from 2011 to 2012 in order to give participants more time to improve their energy efficiency.

Secondary information

Type: Written question
Reference: 3722; 722 c184WA
Session: 2010-12
Subjects: Income Local government Public sector Carbon reduction commitment energy efficiency scheme
Link: View this Written question on www.publications.parliament.uk