Michael Connarty
Labour Member of UK Parliament - Linlithgow and East Falkirk Constituency
Impact of Government's Carbon Reduction Scheme on INEOS at Grangemouth
Michael Connarty: To ask the Secretary of State for Energy and Climate Change if he will discuss with UK port companies his simplification review of the carbon reduction commitment energy efficiency scheme. [46715]
Gregory Barker: I wrote to the UK Major Ports Group on 20 January offering a meeting and they have recently taken up this offer. A meeting with the UK Major Ports Group will take place next month.
Michael Connarty: To ask the Secretary of State for Energy and Climate Change (1) when he expects to conclude the simplification review of the carbon reduction commitment energy efficiency scheme; [46716]
(2) what priorities he has set for the issues to be considered in his review of the carbon reduction commitment energy efficiency scheme. [46717]
Gregory Barker: Feedback to date has led DECC to conclude that priority areas for simplification of the CRC Energy Efficiency Scheme include:
Private (business) sector organisational rules of the scheme
Review of the CRC supply rules
Review of the CRC qualification criteria
Reducing the overlap between schemes (especially between the CRC scheme, Climate Change Agreements and the EU Emissions Trading System)
Timing and frequency of allowances sales
However, other aspects of the scheme could also be revisited and stakeholders are welcome to make suggestions for changes to the scheme. In making any such suggestions, it would be particularly helpful if the following aspects of any such suggestions were discussed in submissions to DECC:
“How your proposals would tackle the four barriers to the uptake of energy efficiency in large organisations (namely, insufficient financial drivers, uncertain reputational benefits of demonstrating leadership, split incentives between landlords and tenants and organisational inertia).
How your proposals might affect the magnitude of the energy use coverage of the scheme
How the energy efficiencies/emissions savings associated with your proposals could be verified/audited in a proportionate but effective manner.”
The time scale for ending the simplification review will largely depend on the nature and extent of simplifications suggested. I expect to publish simplification proposals for formal consultation later this year.
15 Mar 2011 : Column 294W
Michael Connarty: To ask the Secretary of State for Energy and Climate Change how much additional revenue he expects to receive as a result of the changes he has made to the carbon reduction commitment scheme. [46718]
Gregory Barker: The Government decided not to proceed with the recycling of CRC revenues proposed by the previous Administration in order to support the public finances and contribute to the spending plans set out in the spending review. The decision has the additional benefit of creating a clearer price signal in the scheme which participants have asked for.
The clearer and stronger price signal provided by this change should reduce uncertainty and administrative costs while maintaining energy efficiency measures amongst participants and the commensurate savings in energy bills.
The Office for Budget Responsibility forecasts for revenues from the reformed CRC are available at
http://budgetresponsibility.independent.gov.uk/econ-fiscal-outlook.html
| Forecast | |
A positive figure indicates a saving compared to previous plans, corresponding to the revenue expected to be generated from allowance sales each year.
HM Treasury’s updated costings for spending review 2010 annually managed expenditure measures yet to take effect, based on the OBR’s November “Economic and fiscal outlook” can be found at:
http://budgetresponsibility.independent.gov.uk/d/econ_fiscal_outlook_291110.pdf
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