Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Energy and Climate Change, what evidential basis was used when calculating the latest forecasts for the Levy Control Framework.

We use a range of assumptions when updating Levy Control Framework (LCF) forecasts. Strike prices for signed Contracts for Difference are available on the Low Carbon Contracts Company website. Renewable Obligation and Feed in Tariff Scheme deployment data is published monthly on the Renewable Energy Planning Database and Ofgem’s website respectively:

https://www.gov.uk/government/publications/renewable-energy-planning-database-monthly-extract

https://www.renewablesandchp.ofgem.gov.uk/Public/ReportManager.aspx?ReportVisibility=1&ReportCategory=0.

The publication of the Renewables Obligation 2016/17 outlined the methodology for deriving some of the LCF’s key assumptions:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/464685/Renewables_Obligation_Level_Calculations_for_2016-17.pdf

A similar approach is taken for FiTs and CfD assumptions, and with interim adjustments made to reflect the latest commercial, technical, and policy specific information available to DECC.

Assumptions on wholesale prices used in the LCF projections that were published alongside the autumn Spending Review were consistent with the wholesale fossil fuel, electricity, and carbon prices scenarios published as part of the updated Energy and Emissions Projections in November 2015, and are set out in Annex M at:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/477625/Annex-m-price-growth-assumptions.xls.