The government came to power in May warning that the levy control framework (LCF) has been overspent. But Davey has branded the claims “misleading” and challenged the Tory minister to be more transparent in how it has used data from the Office for Budget Responsibility.
“They are being disingenuous in what they’re saying,” Davey said.
The government claims that the £1.5 billion overspend on its £7.6 billion LCF budget has come about because of the “successful deployment” of solar and onshore wind technologies resulting in higher than expected payments.
“I’m not suggesting it won’t be tight,” Davey added, explaining that a carefully controlled budget is a key part of the LCF mechanism’s design.
“ only at the end of the period do we get anywhere near the cap – and the headroom,” he emphasised.
In one of his first public speaking appearances since losing his position in parliament Davey lashed out at Chancellor George Osborne’s lack of support for renewable energy.
“He’s motivated by wanting to be the next leader of the party,” he said, adding that the Treasury is “way behind the curve in understanding the energy market – shockingly”.
Davey said the Treasury department viewed the Department of Energy and Climate Change as a group of “provincial hippies who don’t know anything”.
“We were able to win arguments using evidence – but the difference now is that he doesn’t need to debate his decisions.”