23/11/2016

Today Chancellor Phillip Hammond has presented what will now be the last autumn statement to parliament as this will be replaced with the autumn budget going forward. Whilst largely underwhelming from an energy policy perspective the key energy related points are summarised below:

  • The autumn statement does make reference to the energy sector with the government anticipating in excess of £100 billion to be invested over the next 15 years which is expected to provide a smarter energy system for the UK as well as ‘cleaner’ generating capacity.
  • As part of the statement the government also re-iterated its commitment to decarbonising the economy while at the same time aiming to limit the costs of bills. The statement also mentions the development of an emissions reduction plan.
  • The future of the Levy Control Framework, the tool used to support control of costs to consumers arising from government energy policies is under review and this will be addressed as part of the 2017 Budget. -
  • The government has confirmed it will maintain the cap on Carbon Price Support rates at £18 t/CO2 and this will increase in line with inflation in 2020-21. This will impact those generating electricity using gas, LPG, coal and other solid fuel.
  • The introduction of the Shale Wealth Fund which will provide up to £1 billion of additional funds for local communities on the back of shale production.

SMS will continue to monitor the energy legislative landscape and provide updates accordingly.

Source: HM Treasury Autumn Statement 2016 -
https://www.gov.uk/government/publications/autumn-statement-2016-documents

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