Date set for price cap plans and clean growth plan

The government is due to publish both its draft energy cap legislation and the clean growth strategy on Thursday.

In a twin pronged announcement on energy, the government will be publishing the two landmark documents on the same day.

Utility Week has learnt that the clean growth strategy is due to be launched at an event at the Here East innovation centre on the former Olympic Park in London.

A spokesperson for prime minister Theresa May also said that the energy price legislation would be published on Thursday.

The two announcements will be linked by a section in the clean growth strategy.

Climate change minister Claire Perry revealed at the Conservative party conference last week that the section will outline evidence showing how households’ fuel costs have dropped due to measures like energy efficiency.

According to a briefing note issued last week by Conservative party headquarters to accompany May’s speech, the draft bill will outline beefed up powers for Ofgem to introduce a cross-market cap on standard variable tariffs. The note also said that the cap would only be in place for a temporary period while the smart meter roll-out beds in.

The clean growth strategy is the long-delayed document that will outline the government’s plans for how it intends to implement the emissions reduction targets outlined in the 5th carbon budget, which was adopted by the government following last year’s Brexit referendum.

The budget states that the UK’s emissions of the greenhouse gas must drop to 57 per cent of 1990 levels by 2030.

The strategy, which was formerly known as the emissions reduction plan, was delayed following the summer reshuffle saw Perry take over the climate change portfolio from Nick Hurd, who had indicated before the general election that it was nearly ready to publish. Perry has said that she wanted more time to work on the strategy to make it more ‘ambitious’.  

The Committee on Climate Change estimated in a report, published in June, that the government must identify 80-100 TWh of additional low-carbon generation by the end of the next decade to meet its 5th carbon budget targets.