Open consultation: Contracts for Difference (CfD): proposed amendments to the scheme

We’re seeking views on proposed amendments the Contracts for Difference (CfD) scheme, which provides support for new low carbon electricity generation projects, to enable it to continue to support new generation and provide best value for bill payers in coming years.

Government aims to support the development of onshore wind projects on remote islands, where they benefit local communities. This consultation sets out a proposed definition of remote islands wind, as a new technology that can compete in future auctions for ‘less established’ technologies. An impact assessment is published regarding this proposal.

The responses to the Call for Evidence on fuelled technologies in the CfD scheme, published in November 2016, have informed the development of a number of policy changes relating to fuelled technologies. This consultation proposes:

  • refinements in relation to Advanced Conversion Technologies, to ensure that only more innovative and efficient plants are awarded subsidy
  • changes to the overall efficiency requirements for Combined Heat and Power, to ensure that CfD supported plants are of a suitably high overall efficiency. An impact assessment is being published regarding this proposal
  • updated greenhouse gas emissions criteria that new projects using solid and gaseous biomass as feedstock will have to comply with.

The consultation also makes new proposals to facilitate more accurate forecasting of budget spend, and invites views on various other potential changes to the detailed terms of new CfD contracts.

Open consultation: Aviation EU Emissions Trading System: proposed amendments to UK legislation

This consultation will cover UK implementation of the agreed amendments to the Aviation EU Emissions Trading System (EU ETS). The amendments to be implemented are:

  • to extend the existing Intra-European Economic Area (EEA) scope for the Aviation EU ETS until 31 December 2023
  • to introduce simplified procedures for operators emitting less than 3,000 tonnes of CO2 per annum on intra-EEA flights; and
  • to extend the exemption for non-commercial operators emitting less than 1,000 tonnes of CO2 per year until 2030

The consultation will be of particular interest to aircraft operators, aerodrome operators, verifiers, other participants in the EU ETS and environmental groups. This consultation is not limited to these stakeholders; any organisation or individual is welcome to respond.

Our impact assessment estimates the reduction in compliance costs for aircraft operators, the reduction in the environmental benefits of Aviation EU ETS, and the reduction in government auction revenues between 2017 and 2023, as compared to a scenario where the EU and UK legislation was not amended. Consultees are invited to submit any additional evidence or other relevant information on the impacts of the policy option assessed in our impact assessment.

The measures proposed in this consultation are without prejudice to future decisions on the UK’s future relationship with the EU on the EU ETS.

Postal Addresses

Emissions Trading & Industrial Decarbonisation Team
Department for Business, Energy and Industrial Strategy
6th Floor, Abbey 2
1 Victoria Street
London
SW1H 0ET

Respondents in Northern Ireland, Scotland, and Wales are requested to copy their responses to:

Northern Ireland

By email: Climate.Change@daera-ni.gov.uk By post:

Climate Change Unit
Environmental Policy Division
Department of Agriculture, Environment and Rural Affairs
2nd Floor, Klondyke Building,
Cromac Avenue,
Gasworks Business Park,
Malone Lower
Belfast
BT7 2JA

Scotland

By email: climate.change@scotland.gsi.gov.uk By post:

Climate Change Division
Scottish Government
Climate Change Division
Area 1D South
Victoria Quay
Edinburgh
EH6 6QQ
Enquiries: 0131 244 7815

Wales

By email: decarbonisationmailbox@gov.wales By post:

Carbon Trading and Climate Risk Branch
Department for Environment and Rural Affairs
Welsh Government
Floor 1 East Cathays Park
Cardiff
CF10 3NQ

Open consultation: National Policy Statement for new nuclear above 1GW post 2025: siting criteria and process

Updated: Clarification note about Assessment of Sustainablity Scoping Report

National Policy Statements (NPS) establish the case for Nationally Significant Infrastructure Projects, as defined in the Planning Act 2008. The current nuclear power NPS lists 8 sites as potentially suitable for the deployment of new nuclear power stations by the end of 2025.

We are considering the planning framework for nuclear power generation for the long term by starting work towards a new NPS for nuclear power generation for deployment after 2025. The first step towards this new NPS is to consult on the process and criteria for designating potentially suitable sites for the deployment of new nuclear power stations between 2026 to 2035 and with over 1GW of single reactor electricity generating capacity. There will be a further consultation on the draft NPS, which will build on the outcome of this consultation.

As part of the designation of the NPS, an Assessment of Sustainability (AoS) will also be undertaken. The scoping report on the AoS sets out how it will be undertaken, the level and type of information it will cover, and how it will be integrated into the development of the proposed new NPS for nuclear. In accordance with Regulation 12(5) of the Environmental Assessment of Plans and Programmes Regulations 2004, only specific statutory consultees are being consulted on the AoS Scoping Report. However, we have made the scoping report publicly available on this page, for information purposes only.

We are keen for views on the proposed process and criteria from industry, local authorities, regulators and non-departmental public bodies, NGOs and local residents.

Assessment of Sustainability

Only specific statutory consultees are being consulted on the AoS Scoping Report. This consultation is open for the statutory 5 week period and closes on 11 January 2018.

Open consultation: Low Carbon Contracts Company and Electricity Settlements Company Operational Costs 2018-2019 to 2020-2021

We’re seeking views on the proposed 2018-2019, 2019-2020 and 2020-2021 operational cost budgets and resulting levies for the Low Carbon Contracts Company (LCCC) and the Electricity Settlements Company (ESC). We would also like your views on a proposal to amend legislation so that the levies can be set more than one financial year in advance.

The Low Carbon Contracts Company enters into and manages Contracts for Difference (CfD) with low carbon electricity generators. The Electricity Settlements Company is responsible for financial transactions relating to the Capacity Market, including making capacity payments to capacity providers, controlling collateral and managing auction bid bonds.

The operational costs of the companies are recovered through levies on electricity suppliers, as set out in legislation. Subject to the outcome of the consultation, the regulations will be amended, and the operational cost levies for 2018-2019, 2019-2020 and 2020-2021 will be reflected in secondary legislation, which is intended to be laid in Parliament in early 2018, to come into force (subject to the will of Parliament) before 1 April 2018.

Open consultation: Cost of energy review: call for evidence

The government commissioned Professor Dieter Helm CBE to undertake an independent Review of the cost of energy on 6 August 2017. Professor Helm’s report was published on 25 October 2017.

The government is now taking time to carefully assess the findings and recommendations set out in the Helm Review. As part of that process we’re asking for the views of businesses, consumer groups, academics and other stakeholders.

Open consultation: Bringing forward EU Emissions Trading System 2018 compliance deadlines in the UK

This consultation seeks views on a proposal to bring forward the 2018 compliance deadlines for UK operators in the EU ETS to before the date of EU Exit on 29 March 2019. These changes are intended to:

  • Provide clarity to EU ETS participants on the UK’s 2018 compliance obligations during the UK’s withdrawal from the EU.
  • Alleviate the negative impacts of an amendment to the EU ETS Directive, recently agreed by the European Parliament and Council, which stipulates that aviation and stationary operators will not be able to use allowances issued by a Member State in respect of which there are obligations lapsing. The stated objective of the amendment to the Directive is to protect the environmental integrity of the EU ETS in the event of a UK departure from the System in March 2019. This would mean that allowances issued by the UK in 2018 could not be used for compliance. However, bringing forward the 2018 compliance deadlines would mean that obligations for 2018 compliance would not be lapsing and it would therefore not be necessary to implement a measure which would have negative and disruptive effects on the smooth operation of the carbon market and on EU ETS participants.

The consultation is being conducted by the UK Government in its responsibilities as the Member State, for negotiating on the EU ETS with the EU. Policy responsibility for emissions trading within the UK is a devolved matter, and the UK Government will work with the Northern Ireland Executive, the Scottish Government and the Welsh Government to inform them of stakeholders’ views on this consultation, and consider our collective response.

We welcome responses from any organisation or individual but this consultation will be of particular interest to all UK-regulated EU ETS operators with obligations to comply in the power, aviation and industrial sectors.

Subject to responses to the consultation, we propose to lay legislation before Parliament in December with the intention that the changes take effect from 1 January 2018.

The measures proposed in this consultation are without prejudice to future decisions on the UK’s future relationship with the EU on the EU ETS.

Your responses

We hope that you will respond online here:

Bringing forward EU Emissions Trading System 2018 compliance deadlines in the UK

If you prefer to send your response by post or email, please use the main postal and email address below, and if responding from Northern Ireland, Scotland and Wales, please copy your response to these addresses:

Location Postal Address Email
Northern Ireland Department of Agriculture, Environment and Rural Affairs
2nd Floor, Klondyke Building
1 Cromac Avenue
Gasworks Business Park
Belfast
BT7 2JA
Climate.Change@daera-ni.gov.uk
Scotland Climate Change Division
Scottish Government
1G Dockside
Victoria Quay
Edinburgh
EH6 6QQ
euets@scotland.gsi.gov.uk
Wales Radioactivity and Pollution Prevention Branch
People and Environment Division
Welsh Government
Cathays Park
Cardiff
CF10 3NQ
rppmailbox@wales.gsi.gov.uk

Open consultation: 2011 Changes to Part 2 of the Housing Grants, Construction and Regeneration Act 1996

As part of its commitment to better regulation, the government said it will undertake a non-statutory Post Implementation Review of the 2011 changes to the Housing Grants, Construction and Regeneration Act 1996 (the “Construction Act”).

To help inform that review, this consultation seeks information to help establish how effective those changes have been in securing their objectives. The consultation also asks some more general questions on the existing construction payment and adjudication framework and a set of questions on the affordability of adjudication, its misuse and its continuing relevance.

The consultation is relevant to any party to a commercial construction contract as defined by the construction contracts legislation. It is also relevant to adjudicators, arbitrators and lawyers. While this consultation concerns construction specific legislation it may also be relevant for those with an interest in prompt payment more generally and to insolvency practitioners. The legislation does not apply to residential occupiers.

The final stage Impact Assessment of the 2011 amendments is available on the Legislation site.

The consultation runs in parallel with one on Retention payments in the construction industry.

Open consultation: Retention payments in the construction industry

The purpose of this consultation is to seek information on the practice of cash retention under construction contracts and gather views on the findings of the supporting documentation.

The consultation is relevant to any party to a commercial construction contract as defined by the construction contracts legislation. It is also relevant to adjudicators, arbitrators and lawyers. While this consultation concerns construction specific legislation it may also be relevant for those with an interest in prompt payment more generally and to insolvency practitioners. The legislation does not apply to residential occupiers.

The research report and consultation stage Impact Assessment are published alongside this consultation.

The consultation runs in parallel with one supporting the Post Implementation Review of the 2011 changes to Part 2 of the Housing Grants, Construction and Regeneration Act 1996.

Open consultation: Downstream oil supply resilience

We are consulting on possible new measures to maintain the security of fuel supply to consumers. The proposed measures would apply to companies operating in the downstream oil sector and form part of a wider package of proposed reforms to government’s approach to the protection of critical infrastructure.

These proposals are consistent with the department’s objective of ensuring that the UK has secure and reliable energy supplies, and our ongoing work with the sector on fuel supply resilience.

This consultation seeks views on proposals to improve fuel supply resilience in the following areas:

  • Monitor - to enable BEIS to collect information from the downstream oil sector to better understand the impact of potential disruptive events, and to use the information to support industry in improving fuel resilience
  • Protect - to align this sector with protections that apply in other critical service sectors, by enabling government to ensure that new owners of critical fuel infrastructure are financially sound and operationally capable; and to take government spending power to enable government to support supply resilience improvements and schemes
  • Insure - to enable industry to create and operate collective, sector-wide industry-led schemes to maintain fuel supply in case normal supply arrangements are seriously disrupted; and a power to direct individual companies to participate in such schemes and take other action that may be necessary to ensure resilience

The purpose of the consultation is to gain a formal view from industry and other interested parties on the proposals in this consultation document, and your ideas as to how these proposals can be improved.

Open consultation: National security and infrastructure investment review

This green paper is the result of the government’s review of the Enterprise Act 2002 and its powers in relation to foreign investment and national security. It sets out the approach the government proposes to take in both the short and long term. We will use your responses to the green paper to develop these proposals further.

The consultation is split into 2 parts.

Part 1

In the short term, we propose to amend the turnover threshold and share of supply tests within the Enterprise Act 2002. This is to allow government to examine and potentially intervene in mergers that currently fall outside the thresholds in 2 areas:

  • the dual use and military use sector
  • parts of the advanced technology sector

Part 1 of the consultation lasts 4 weeks, closing on 14 November 2017.

Part 2

The second part of the green paper seeks views about potential long-term reforms that government should take to its approach to ensuring that investments and takeovers cannot raise national security concerns.

Part 2 of the consultation lasts 12 weeks, closing on 9 January 2018.