Conclusions and recommendations
1. The Energy White
Paper represents a major shift in the approach to UK energy strategy.
We welcome the priority which it gives to environmental objectives
and the extent to which it endorses the role of renewables and
energy efficiency in a future energy strategy. (Paragraph
10)
2. By including in
the White Paper a specific commitment to a 60% reduction in carbon
emissions by 2050, the UK Government has set a clear goal for
domestic policy. It has also led the way internationally by emphasising
to other nations the need to address the challenge of global warming.
(Paragraph 11)
3. We believe that,
just as the UK is setting a precedent in terms of adopting a long-term
target, it could also exert greater influence over other nations
by setting out and promoting more clearly what approach it favours
in terms of an international framework for reducing carbon emissions.
(Paragraph 13)
4. Departments are
already required to screen new policy proposals for environmental
impacts and conduct appraisals where necessary. We recommend that
they should include within this screening process specific consideration
of any implications arising from the adoption of the 60% carbon
reduction target. (Paragraph 14)
5. Our fears about
implementation have proved largely justified. The Energy White
Paper is weak on specific measures and contains little that is
new. (Paragraph 18)
6. We find it incomprehensible
that the Government was unable to publish an implementation plan
as a supporting document to the White Paper. We recommend that
the Government does so as soon as possible, and includes within
it not only an implementation plan for energy efficiency but a
similar plan for renewables. (Paragraph 20)
7. Not a valid bookmark
self-reference. It should also incorporate the 20% renewables
aspiration as a target in both Public Service Agreements. It should
also incorporate the 20% renewables aspiration as a target in
both Public Service Agreements. (Paragraph 27)
8. Not a valid bookmark
self-reference. (Paragraph 29)
9. Not a valid bookmark
self-reference. (Paragraph 34)
10. The development
of an implementation plan for renewables will provide an opportunity
for the Government to set out how it intends to achieve its aspirations.
(Paragraph 34)
11. it is disappointing
that there has been so much delay in issuing revised planning
guidance on renewables (formerly PPG 22). We urge the Government
to publish it as soon as possible. (Paragraph 35)
12. Given the importance
of energy efficiency in a future energy strategy, the Government
must include a clear overall target and specific sectoral targets
within the energy efficiency implementation plan which it is developing
(Paragraph 39)
13. We urge the Government
to take into account the comments made on its draft CHP strategy
and publish a final strategy as soon as possible. (Paragraph 44)
14. We recommend that
the Treasury re-examines as soon as possible the possibility of
introducing a reduced rate of VAT for micro-CHP. (Paragraph 47)
15. We urge the Government
to ensure that sufficient funding is available to deliver the
50% increase in current fuel poverty programmes recommended by
the Fuel Poverty Action Group. (Paragraph 50)
16. The Government
must re-evaluate the effectiveness of schemes to address fuel
poverty, and ensure thatin the longer termthe domestic
sector bears its proper share of the costs of reducing greenhouse
gas emissions. The best way forward is for the Government to
initiate a proper public debate on this issue. (Paragraph 53)
17. In reviewing the
building regulations, the Office of the Deputy Prime Minister
must incorporate not only far higher standards of energy efficiency
requirements, but also requirements for the use of renewables
where possible, with a view to moving towards zero space heating
requirement for buildings (Paragraph 55)
18. Large-scale investment
is likely to be needed to modernise the grid to accommodate higher
levels of distributed processing and major new sources such as
offshore wind farms. This needs a clear strategy and charging
framework. The White Paper does little to resolve these major
issues or give direction to Ofgem. (Paragraph 58)
19. Responsibilities
for all forms of generation should be brought together within
Ofgem in order to provide a coherent approach to charging issues
and enable an appropriate balance to be struck between the interests
of new and traditional forms of generation. (Paragraph 59)
20. Ofgem's next distribution
price review, to be completed in 2005, will be of enormous importance.
The Government should set out clearly, as a fundamental objective
for the price review, that positive and substantial incentives
must be provided for all forms of renewable and distributed generation.
(Paragraph 60)
21. The creation of
yet more ad hoc groups, such as the Sustainable Energy Policy
Network and the Sustainable Energy Policy Advisory Board, does
not provide an effective response to the Performance and Innovation
Unit's criticism that the present allocation of departmental responsibilities
is incoherent. These new groups are likely simply to add to the
confusing plethora of bodies and organisations already involved
in the energy sector. (Paragraph 76)
22. The Government
should alter the objectives of the Department of Trade and Industry
so as to place a higher importance on environmental objectives
in any trade-off with economic or social objectives, in line
with the recommendation made by the Performance and Innovation
unit. This change must also be fully reflected in the Department
of Trade and Industry's Public Service Agreement (Paragraph
77)
23. We highlighted
last year our conviction that a transition to an environmentally
benign energy system could not be achieved on the basis of unsustainably
'cheap' energy, as the Prime Minister's foreword to the PIU report
indicated was a priority. The Government's approach remains inconsistent,
and the price of energy is likely to rise. (Paragraph 80)
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