Select Committee on Environmental Audit Eighth Report


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 that—in the longer term—the 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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