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Written question asked by Laura Sandys (Conservative) on Thursday, 8 December 2011, in the House of Commons. It was due for an answer on Monday, 12 December 2011. It was answered by Lord Barker of Battle (Conservative) on Tuesday, 20 December 2011 on behalf of the Department of Energy and Climate Change.

Electricity: Prices

Question
To ask the Secretary of State for Energy and Climate Change what estimate he has made of the (a) likely and (b) maximum possible effect on the average household electricity bill by 2020 of not implementing the reductions to feed-in tariffs for (i) small-scale solar PV proposed in the comprehensive review and (ii) large-scale solar PV introduced after the fast track review.
Answer

Based on analysis undertaken at the time of the Fast Track Review, we have estimated that not implementing the changes to tariffs for large scale (greater than 50 kW) solar PV in the fast track review would have added approximately £10 (2010 prices, undiscounted) to the average domestic energy bill in 2020. This is based on the estimate of the cost to consumers under the 'Do Nothing' option in the Fast Track Review impact assessment:"http://www.decc.gov.uk/assets/decc/Consultations/fits-review/fast-track-review-announcement-impact-assessment.pdf"As well as proposing new tariffs for small scale solar PV, the comprehensive review has also proposed further reductions to tariffs for large scale PV. In the impact assessment for the most recent consultation:"http://www.decc.gov.uk/assets/decc/11/consultation/fits-comp-review-p1/3416-fits-IA-solar-pv-draft.pdf"we estimated that under the 'no change' scenario and central growth rates, the impact on the average domestic energy bill would be around £26 in 2020 (2010 prices undiscounted).We have revised this estimate in the light of much higher observed growth in PV since the impact assessment to around £40 (2010 prices, undiscounted) in a central uptake scenario, and around £80 (2010 prices, undiscounted) in a high uptake scenario. It should be noted that these estimates represent the impact on bills of both large and small scale PV installations, as we have not separated their respective impacts.Estimates of future PV growth are extremely uncertain. DECC is continually reviewing its evidence in the light of latest data, and will update estimates for the final impact assessment.

Secondary information

Type
Written question
Reference
86493; 537 c1160-1W
Session
2010-12
Subjects
Electricity Prices
Link
View this Written question on www.publications.parliament.uk