Corporate report
DECC data
Updated 24 May 2013
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| Project name | Green Deal | Magnox & RSRL PBO Competition | New Nuclear Programme | Plutonium Management | Renewable Heat Incentive | Smart Meters Programme | Urenco Future Options | Carbon Capture & Storage - Programme | Dounreay Parent Body Organisation (PBO) | Electricity Market Reform Programme | FID Enabling | Geological Disposal Facility Programme (GDF) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Department | DECC | DECC | DECC | DECC | DECC | DECC | DECC | DECC | DECC | DECC | DECC | DECC |
| MPA RAG rating (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the MPA Annual Report) | Not set | Not set | Not set | Not set | Not set | Not set | Not set | Not set | Green | Not set | Not set | Not set |
| Description / aims | The Green Deal programme aims to create a market framework and a new energy company obligation which will enable a step change in the delivery of energy efficiency measures and contribute towards meeting legally binding carbon budgets. Key objectives around creating the market framework are to remove financial and quality assurance barriers for consumers, stimulate demand and allow new entrants to the market for energy efficiency in household and business buildings. For more information, see: https://www.gov.uk/government/policies/helping-households-to-cut-their-energy-bills/supporting-pages/green-deal | The objective of the Parent Body Organisation (PBO) procurement, through applying competitive tension, is to put in place a target cost incentivised pricing arrangement to deliver the Research Sites Restoration Ltd (RSRL) and Magnox Optimised Decommissioning Plan (MODP) at a lower cost than is currently planned. A maximum contract period of 14 years is anticipated with an initial term of some 7 years. For more information, see: http://www.nda.gov.uk/contracts/competition/magnox-rsrl.cfm | The new nuclear programme will: a) ensure operators can build and operate new nuclear power stations in England and Wales from the earliest possible date; taking into account our no public subsidy policy; and b) create a framework so that operators contribute as much low carbon electricity as possible to meet the UK’s 2050 carbon targets cost effectively. The programme does this by creating the right regulatory and policy framework, removing unnecessary obstacles and proactively identifying actions to ensure that the first station can be operational from 2019. For more information, see: https://www.gov.uk/guidance-for-operators-of-new-nuclear-power-stations | The programme aims to deliver a permanent long term management solution for stocks of civil plutonium, following consultation on options undertaken in February 2011. The preferred option is to build manufacturing facilities to convert the plutonium into Mixed Oxide (MOX) fuel and to immobilise and make safe the plutonium not suitable for reuse. In the intervening period, plutonium stocks are safely and securely stored, including overseas owned plutonium in the UK (to which we are in the process of taking title). For more information, see: https://www.gov.uk/government/consultations/managing-our-plutonium-stocks | The rationale for the RHI is to help meet the Government’s renewables target which requires 15% of energy to be sourced from renewable sources by 2020 in a cost-effective way and to help lower carbon emissions. The Renewable Energy Strategy published in 2009 suggests that a 12% contribution to achieving the target could come from the heat sector. The Renewable Heat Incentive provides financial support to renewable heat generators and producers of biomethane that is designed to help address the additional cost associated with renewable technologies, in order to incentivise their take up. For more information, see: https://www.gov.uk/government/policies/increasing-the-use-of-low-carbon-technologies/supporting-pages/renewable-heat-incentive-rhi | The Government's vision is for every home in Great Britain to have smart electricity and gas meters by 2020. Smart Meters will give consumers up-to-date information about how much gas and/or electricity they have used. Smart meters will have benefits for consumers, suppliers and energy networks. Consumers will have near real-time information about their energy use, enabling them to monitor and manage their energy consumption, save money and reduce carbon emissions. Switching between suppliers will also be made simpler. Energy suppliers will have access to accurate data for billing and will be able to offer a wider range of services and tariffs. Energy networks will have better information to manage and plan current activities and support the move towards the development of a smart grid. For more information, see: https://www.gov.uk/government/policies/helping-households-to-cut-their-energy-bills/supporting-pages/smart-meters | As announced on 22 April 2013 by the Business and Energy Minister, the British Government is proceeding with plans to sell some or all of its one-third shareholding in the uranium enrichment company Urenco. The decision to proceed with preparations for a sale comes after the Government has secured agreement to do this from its Dutch and German partners. Any final decision to sell will require the support of both the Dutch and German Governments and shareholders. Building on the work of a number of years, this sale supports the Government's strategy to dispose of public assets that do not require public ownership. Funds released from a sale can then be used to meet the Government's priorities of achieving strong and sustainable growth across the country. Subsequent to the Machinery of Government change in February 2013, the Urenco project has transferred from DECC to BIS. For more information, see: https://www.gov.uk/government/news/government-to-proceed-with-urenco-sale-to-realise-value-for-the-taxpayer | The CCS Commercialisation Programme aims to build confidence and drive down costs of developing a cost competitive CCS industry, by supporting practical experience in the design, construction and operation of commercial scale CCS with £1bn Government capital funding. As a result of the CCS Programme existing fossil fuel supplies (gas & coal) will be used more cleanly, maintaining the diversity of our fuel mix; emissions from electricity generation will be reduced; in addition to providing a flexible and predictable supply of low carbon electricity generation, that can respond to changes in demand. The CCS Programme will also help in meeting carbon targets flexibly and cost effectively, and help maintian energy security. For more information, see: https://www.gov.uk/uk-carbon-capture-and-storage-government-funding-and-support#ccs-commercialisation-competition | The objective of the procurement was to secure a reduction in the cost and time to take Dounreay site to its interim end state by securing a new Parent Body Organisation (PBO) for the Site Licence Company (SLC) at Dounreay, Dounreay Site Restoration Limited (DSRL) without any significant health, safety, enviromental or security issues. The successful bid by BDP (Babcock Dounreay Partnership) reduced the target cost by circa £2 billion to circa £1.5 to £1.6 billion (Current Year values) and brought the interim end state date forward to 2023-2025. For more information, see: http://www.nda.gov.uk/contracts/competition/dounreay/index.cfm | The aim of the programme is to undertake the necessary reform to the electricity market to ensure the UK can attract the investment in electricity generation needed to have a secure, affordable supply of electricity towards the end of this decade and in the longer-term and to meet its renewable and carbon emission reduction targets in the most cost-effective way. The outcome sought is an electricity market that can: attract around £70-75bn of investment in new electricity generation by 2020 and around a further £50bn to 2030; attract sufficient investment in development and retention of flexible capacity from the demand or the supply side to ensure sufficient capacity margins can be maintained; attract sufficient investment in low carbon generation to meet our climate change and renewable energy targets; and achieve these aims with minimum impact on consumer bills. For more information, see: https://www.gov.uk/government/policies/maintaining-uk-energy-security--2/supporting-pages/electricity-market-reform | The Electricity Market Reform White Paper set out the Government’s commitment “to work actively with relevant parties to enable early investment decisions to progress to timetable wherever possible, including those required ahead of implementation of the Feed-in Tariff with Contracts for Difference (FiT CfD)”. The first developer to seek assurance through the FID Enabling project is New Nuclear Build Generation (NNBG), led by EDF, to build a new nuclear plant at Hinkley Point C. By providing an appropriate form of comfort in advance of the implementation of EMR reforms, we are likely to encourage final investment decisions to come forward that would otherwise have been delayed until all necessary legislation had been enacted and new institutional arrangements put in place; or possibly cancelled altogether. This supports the Government’s decarbonisation and security of supply objectives as well as stimulating investment which creates jobs and growth. For more information, see: https://www.gov.uk/government/policies/maintaining-uk-energy-security--2/supporting-pages/electricity-market-reform | The 2008 Managing Radioactive Waste Safely (MRWS) White Paper confirmed geological disposal as Government policy for the safe and secure long-term management of higher-level radioactive waste - both legacy wastes and wastes produced from potential new nuclear power stations. The Geological Disposal Facility (GDF) programme is designed to implement that policy. Key parts of the programme include gaining community agreement to investigating the potential for hosting a GDF; completing site identification and assessments; securing legal and regulatory approvals and underground construction and testing to achieve the first waste emplacement by 2040. For more information, see: https://www.gov.uk/managing-radioactive-waste-safely-a-guide-for-communities |
| Departmental narrative, actions on Delivery Confidence Assessment | The Green Deal launched at the end of January. DECC is monitoring the early stages of the Green Deal to ensure that the framework supports effective delivery, and to identify and address barriers, as well as putting in plans for longer-term evaluation. Statistics on the operation of the Green Deal and ECO are published on a monthly basis and can be found here: https://www.gov.uk/government/organisations/department-of-energy-climate-change/series/green-deal-and-energy-company-obligation-eco-statistics . | TBC - commercial negotiations underway | TBC - commercial negotiations underway | TBC - commercial negotiations underway | TBC - policy still under development | TBC - commercial negotiations underway | TBC - commercial negotiations underway | TBC - commercial negotiations underway | Programme fully on track. | TBC - Energy Bill progressing through Parliament | TBC - commercial negotiations underway | TBC - pending consultation |
| Project - start date | 20/05/2010 | 20/04/2012 | 31/01/2008 | 23/05/2011 | 30/11/2008 | 02/12/2009 | 01/02/2010 | 25/10/2011 | 21/09/2009 | 10/12/2010 | 01/09/2011 | 30/06/2011 |
| Project - end date | 31/12/2030 | 30/06/2028 | 31/12/2019 | 31/03/2110 | 01/02/2014 | 23/09/2019 | Not set | 01/01/2045 | 31/12/2025 | 31/12/2030 | 30/11/2013 | 31/12/2040 |
| Departmental narrative on schedule, including any deviation from planned schedule | Start date represents the Coalition agreement. Green Deal was launched on time on 28 January 2013. The Green Deal market is expected to run through until 2030. | Start date represents issuing of Prior Information Notice (PIN) for the competition. Share transfer and contract award is now expected in September 2014. The end of the contract period is expected to be 2028. | Start date represents the 2008 Nuclear White Paper. The facilitative actions set out in the 2008 White Paper have largely been completed, establishing the policy and regulatory framework to enable the deployment of nuclear power. The end date corresponds to first electricity generation at Hinkley (on current timetable as set out in its planning application), expected from 2019. | Start date represents the Starting Gate independent assurance review to initiate the programme. Indicative date for commercial operations of the MOX plant to begin is 2027, with decommissioning of the plant complete by 2110. | The start date reflects Royal Assent to the Energy Act 2008, which includes the legal powers that underpin the RHI. The project end date of 01/02/2014 reflected the previously expected launch of the domestic RHI scheme in Summer 2013. DECC now expects to open the Domestic RHI for applications from Spring 2014 and the project end date will be revised to reflect this. | Start date represents publication of the Government response to the consultation on smart metering for gas and electricity. Start of mass roll out is expected to begin in late 2015, with mass rollout due to be completed in 2020. | The start date represents the commencement of Urenco future options work. The form, scale and timing of any proposed sale has not yet been determined and will be conditional on further discussions with our Urenco partners. | Start date represents approval of strategic business case for new CCS Programme. First projects are expected to be operational between 2016-2020 with decommissioning expected around 2045. | Start date represented the issuing of the Prior Information Notice (PIN). Contract award and share transferred concluded on time in March 2012. Site Interim End State is expected to be achieved in 2023-25. | Start date represents the publication of the EMR consultation. EMR mechanisms are expected to be in place for delivery body to operate and deliver by December 2014. Benefits expected to be realised by 2030. | Start date represents start of project following the EMR White Paper of July 2011. End date represents the expected conclusion of negotiations. | The programme commenced following publication of the Managing Radioactive Waste Safely (MRWS) White Paper in June 2008. Under original plans, first waste deposited on site was expected by 2040. However, on 30 January 2013, three local councils in west Cumbria (the only communities engaged at that time in the MRWS process) voted on further participation in the siting process for a GDF. In the absence of a positive vote at both Borough and County level - an agreed pre-requisite for the process to continue in west Cumbria - the process in west Cumbria has been brought to a close. The department is learning lessons from the experience in west Cumbria and has launched a 'Call for Evidence' which will inform a public consultation later in the year. Should changes to the siting process be made following consultation, the GDF programme will be re-baselined and planning assumptions will be reviewed. |
| 2012/13 Budget (£million) | 66.5 | 740 | 2 | Not set | 108 | 20.1485 | 2.5 | 4.9 | 150 | 10.2 | 11.6 | 22 |
| 2012/13 Forecast (£million) | 66.5 | 740 | 2 | Not set | 41 | 20.1485 | 2.5 | 4.9 | 154.7 | 10.2 | 11 | 22.2 |
| Total budgeted whole life costs (£million) (including non-government costs) | 10304.2 | 7603 | 40.79 | Not set | 33149 | 17171.9455 | 11.98 | Not set | 1578 | 40.1 | 20.92 | 11626.2 |
| Departmental narrative on budget/forecast variance for 2012/13 (if variance is more than 5%) | 12/13 budget is made up of £30m of capital for Green Deal Incentives, plus scheme administration and advice services (eg Energy Savings Advice Service) | 12/13 budget represents the current year's Annual Site Funding Limit (ASFL). | 12/13 budget represents the cost for development and delivery of policy and regulations. | 12/13 budget is commercially sensitive | The 12/13 budget was based on the RHI annual expenditure limit of £133m, minus £25m that was set aside for the Renewable Heat Premium Payment scheme. The relatively low forecast reflected delays to the launch of the scheme and low take-up for some technologies. The forecast spend above is based on an extrapolation of the application rates received by Q3. The forecast underspend is therefore the difference between the available budget and anticipated spend. | 12/13 budget represents funding for the central Government programme only. | 12/13 budget represents the estimated cost of administering the sales process, including use of expert advisers for the FY12/13 year as at September 2012. A significant portion of the budget allocated at the outset of FY12/13 was rolled forward into FY13/14. | 12/13 budget represents cost of managing programme. | 12/13 budget represents the first year of site management and decommissioning. Variance is due to change controls for scope not included in the tender now being brought into contract. | 12/13 budget represents costs of policy and regulatory development in the EMR team only, it does not include support staff from other DECC teams such as legal, HR, finance and the FID Enabling project. It does includes expert advisers and programme spend. | 12/13 budget represents cost of managing Investment Contract negotiation, including for expert advisers. The under-spend in 12/13 against the revised budget reflects that negotiation timelines / activities have continued to change in comparison to earlier expecations and the need for flexibility in accommodating external experts required to support the negotiations. | 12/13 budget represents cost of managing the programme, community engagement and preparatory studies. This includes some £20m of NDA expenditure through the NDA Radioactive Waste Management Directorate (RWMD). |
| Departmental narrative on budgeted whole life costs | Whole life cost represents £10bn (discounted) anticipated total capital spend via private sector investment on energy efficiency measures over the life of Green Deal and the Energy Company Obligation (ECO), plus £200m of Government-provided incentives, with a small balance made up of scheme administration and advice services | Whole life cost is made up of the Planned Assured Funding Level (PAFL) from 14/15 to 20/21 with spend levels beyond that set to align with the current planned profile. | Whole life cost represents costs for delivery of the facilitative/regulatory framework. Stations will be built, operated and decommissioned by the private sector. The Electricity Market Reform programme will provide the market framework including contracts for difference for the operators. | Indicative discounted costs estimated at around £3bn in the consultation response on the management of the UK's plutonium stocks published on 1 December 2011. More detailed costs are commercially sensitive. Whole life cost represents the discounted costs for designing, constructing, operating and decommissioning the MOX plant and immobilisation plants. | Whole life cost represents lifetime subsidy costs (undiscounted) for the non-domestic scheme up to 2040 and assumes that policy does not change to 2020/21. The estimate above is from the RHI Impact Assessment published in September 2012. It is subject to revision, in the light of forthcoming announcements on the non-domestic and domestic schemes. | Whole life costs for installing and operating smart meters as well as the data and communications infrastructure will fall to industry; primarily energy suppliers. This figure is undiscounted. | Whole life costs represent the anticipated project costs as at September 2012 of taking the project from inception to completion, including use of expert advisers. | Government whole life cost is currently assessed to be £1092.4m. £292.4m of this total represents spending that was incurred under the Demonstration 1 CCS Programme which ran until 2011; spending incurred and forecast spending by DECC on managing the programme, and a provisional allocation of £200m from the £1bn committed by Government for risk reduction (Front End Engineering Design) and capital funding for selected projects during this SR. Work continues to determine the precise funding profile following an announcement on 20 March 2013 for two Preferred Bidders to proceed to the next stage, subject to conditions. The £1bn will be avaliable when projects need it. Note that total whole life costs are greater than £1bn as additional support, subject to affordability, will be provided through Contracts for Difference (CfD) via the Electricity Market Reform (EMR) programme. Private sector investment has also been excluded at this time for commercial reasons. | Whole life cost represents new contract forecast of £ 1.578 billion (i.e. bid price plus £ 100m fee) excluding change controls which will be processed through consolidation period up to December 2012 and beyond. | Whole life cost figures represent the cost of managing the programme and setting up the institutional framework (see notes on 12/13 budget above). They do not include the public finance costs of EMR mechanisms, including the contracts for difference feed in tariff and the capacity mechanism, which will come under the Levy Control Framework (LCF) as Annually Managed Expenditure (AME). | Whole life cost figures represent the cost of managing the Investment Contract negotiation, including for advisers. They do not include the eventual public finance cost for the Investment Contract, which will come under the Levy Control Framework (LCF) as Annually Managed Expenditure (AME). | Whole life cost figures represent the estimated undiscounted cost of designing, constructing and operating the GDF out to 2130. The undiscounted cost of designing and constructing the first stages of a GDF (to first emplacement of waste in 2040) is estimated to be £4bn. |
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