Transparency data
DECC government major project portfolio data, September 2014
Updated 25 June 2015
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| Project name | Carbon Capture & Storage Commercialisation Programme | Dounreay Parent Body Organisation (PBO) - Delivery Phase | Electricity Market Reform Programme | FID Enabling for Hinkley Point C | FID Enabling for Renewables | Geological Disposal Facility Programme (GDF) | Household Energy Efficiency | Magnox & RSRL PBO Competition | Renewable Heat Incentive | Smart Meters Implementation Programme |
|---|---|---|---|---|---|---|---|---|---|---|
| Department | 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) | Amber | Green | Amber | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | Amber | Amber | Amber/Red | Amber/Green | Amber | Amber |
| Description / Aims (From GMPP data) | The CCS Commercialisation Programme aims to build confidence and drive down costs of developing CCS power projects. It supports practical experience in the design, construction and operation of up to two commercial scale CCS projects, by providing up to £1bn of Government capital funding and negotiating an appropriate Contracts for Difference. The CCS Programme aims to bring forward projects that will help make CCS competitive with other low carbon technologies by the 2020s, enabling existing fossil fuel supplies (gas and coal) to be used more cleanly, maintaining the diversity of our fuel mix. This will reduce emissions from electricity generation, 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 play an important role in meeting our carbon targets flexibly and cost effectively, while maintaining energy security. For more information, see: https://www.gov.uk/uk-carbon-capture-and-storage-government-funding-and-support | The objective of the Dounreay Parent Body Organisation (PBO) competition 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 for the Site Licence Company (SLC) at Dounreay, Dounreay Site Restoration Limited (DSRL). Associated with this was to be replacement of the cost reimbursable Management and Operations contract with a Target Cost/Incentivised Fee contract which transferred elements of risk currently held by NDA/HMG to the private sector. The previous plan reflected the cost at £3.5 billion and being achieved by 2038. The successful bid by CDP (Cavendish Dounreay Partnership) reduced the cost by circa £1 billion and brought the interim end state date forward to 2023-2025, although developments during the bidding process which the tenderers could not allow for due to their maturity are yet to be factored in via approved change control. | 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 key elements of the programme which will deliver this are: • The creation of a Contract for Difference (CFD) Mechanism which incentivises low carbon technology and generation (renewables, nuclear and CCS) in a cost-effective way; • The creation of the Capacity Market Mechanism to ensure that the market has sufficient capacity to ensure security of supply in a cost-effective way; and • Putting in place an institutional framework with sufficient credibility to administer the reforms efficiently and effectively. | The aim of Final Investment Decision (FID) Enabling for Hinkley Point C is to avert an investment hiatus in the deployment of low carbon electricity generation caused by the announced reform of the electricity market, in the period between the publication of the EMR White Paper and the full implementation of the EMR Contracts for Difference (CFD). | The aim of Final Investment Decision (FID) Enabling for Renewables is to avert an investment hiatus in the deployment of renewable electricity generation caused by the announced reform of the electricity market, in the period between the publication of the EMR White Paper and the full implementation of the EMR Contracts for Difference (CfD). | The primary objective of the programme is to site and construct a permanent geological disposal facility (GDF) as the safe, secure and environmentally responsible solution to the long-term management of higher-activity radioactive waste in the UK, excluding Scotland. The programme also supports the delivery of the UK’s nuclear new build programme because before development consents for new nuclear power stations are granted, the Government needs to be satisfied that effective arrangements exist or will exist to manage and dispose of the wastes they will produce. | The Household Energy Efficiency programme aims to improve the energy efficiency of domestic housing stock in the UK. It promotes a step change in the delivery of energy efficiency measures, by encouraging private finance. The new Green Deal market framework and Energy Company Obligation (ECO) helps to meet legally binding carbon budgets, support seasonal energy security, tackle fuel poverty and help consumers reduce energy bills over the long term. The programme is designed to remove financial and quality barriers for consumers (by providing standards in the market place), stimulate demand and incentivise companies to engage with the market to deliver energy efficiency measures. The Programme’s Major Milestone is to see one or more energy efficiency improvement measures fitted in 1 million households by March 2015 with support from one of the following: a. Energy Company Obligation b. Green Deal Incentives c. Green Deal Communities d. Green Deal Private Finance e. Green Deal Operations | The objective of the Parent Body Organisation (PBO) competition was to secure a reduction in costs measured against the extant baselines of Magnox and RSRL. The performance obligations associated with delivery of this objective are embodied within a Client Specification which forms the basis of the Site Licence Company Agreement (SLCA) and Parent Body Agreement (PBA). Following the application of competitive tension via the competition process, it is intended that a target cost incentivised pricing arrangement will be put in place for delivery of the performance obligations of the contract at a lower target cost as compared against the extant baselines for Magnox and RSRL. A maximum contract period of 14 years is contemplated with an initial term of some 7 years. Current anticipated funding requirements for the initial period of the contract is circa £4 Billion but this will be adjusted to approximately £2.4 Billion (the Target Cost bid for phase 1) with the addition of some reconciliation items following Due Diligence and consolidation of the contractors delivery plan. Following award of contract, there will be provision for mid-term break points at the sole discretion of NDA at low cost on two years notice. Discussions with HMG concluded that the competition should be conducted against the current Magnox baseline and the optimised RSRL baseline with the expectation of securing at least a 5% reduction as a result of competition. Contract was awarded on 1st September 2014. The final savings opportunities offered by the winning bid are of the order of 35%. | The Renewable Heat Incentive (RHI) is one of the Government’s mechanisms for driving the transition to deployment of renewable and low carbon heat over the coming decades. The RHI is a key contributor to achieving the UK’s share of the EU’s 2020 renewable energy target and the carbon reduction target set out in the Carbon Plan. The RHI 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. The RHI for the non-domestic sector launched in November 2011 and the RHI for the domestic sector launched in April 2014. Both schemes are administered by Ofgem. | 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 in pounds and pence, as well as units of energy. 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. |
| Departmental commentary on actions planned or taken on the MPA RAG rating. | The Programme addressed the recommendations and issues highlighted by the MPA in the 2013 Project Assessment Review (PAR) and successfully signed 2 Front End Engineering Design contracts in December 2013 and February 2014. The Programme is scheduled for a PAR in 2015. | A revised business case has been submitted to reflect inclusion of additional scope to transfer exotic fuel to Sellafield. Currently no changes have been included for the deviation from planned schedule and be will reflected pending final approval of changed business case. | The Programme has met significant milestones including Royal Assent of the Energy Act 2013, implementing EMR secondary regulations, completed prequalification for the CfD auction and the completion of the first Capacity Market Auction. The CfD auction will begin in January 2015 and the programme is on track to award CfD contracts in the spring. As we are still in the implementation phase, risks remain. | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | State aid approval was secured for the five offshore wind projects in July 2014 and the dedicated biomass with combined heat and power (CHP) project in January 2015, with discussions continuing with the Commission in relation to the two biomass conversion projects. The management of offshore wind Investment Contracts was transferred to the Low Carbon Contracts Company (LCCC) on 1 August 2014, the dedicated biomass with CHP plant transferred in February 2015. | In July 2014, the Government published a White Paper setting out the revised siting process for a GDF. The rating reflects the early stages of a long term project that involves working in partnership with communities | The current delivery confidence reflects the need to shape a cohesive longer-term Programme in the new Parliament post-election. The major milestone was achieved 3 months early, with the January monthly statistics reporting that at the end of November 2014, 1,021,298 households had measures installed through ECO, using Green Deal Finance or an incentive scheme. | Contract now in consolidation phase and, as planned, business case and benefits realisation will be re-visited after consolidation is complete. The contract allows a period of 12 months for consolidation. | Action was taken to ensure the successful launch and operation of the domestic scheme; and the successful implementation of changes to the non-domestic scheme. An interim internal review of domestic performance was undertaken and identified activities and investigations to further improve performance, which are being implemented. The response to increased tariff levels for some non-domestic technologies is being monitored. Further regulations to improve both schemes were laid in Parliament in December 2014. | A MPA Gate 0 Review in June 2014 reflected the good progress made since the last Gate Review in 2013, but acknowledged that there remained a number of areas requiring close management attention by the DECC programme team. The Programme needs to continue to work closely with multiple cross-industry delivery partners to ensure Programme success. There is limited contingency in the plan up until live operations of the Data and Communications Company and the critical path activities remain demanding. |
| Project - Start Date (Latest approved start date) | 25/10/2011 | 21/09/2009 | 16/12/2010 | 01/09/2011 | 17/12/2012 | 12/06/2008 | 30/04/2014 | 03/04/2012 | 30/11/2008 | 02/12/2009 |
| Project - End Date (Latest approved end date) | 31/03/2050 | 31/12/2025 | 31/12/2030 | 30/04/2015 | 30/11/2014 | 31/12/2040 | 31/05/2015 | 01/03/2028 | 01/12/2014 | 31/12/2020 |
| Departmental narrative on schedule, including any deviation from planned schedule (if necessary) | The start date represents the approval of the Strategic Outline Business Case (SOC) for a new CCS Programme - The CCS Commercialisation Programme. Following extended preferred bidder selection and negotiations for Front End Engineering Design (FEED) study, two FEED study contracts were awarded in December 2013 and February 2014. The end date represents the decommissioning of CO2 store. The on-going Front End Engineering Design work will further mature the timetable for detailed design, construction, operation and decommissioning. | The Start Date represents when engagement with the market began with industry days and pre-qualification. The End Date represents when the site’s Interim End State will be reached which is a predefined condition of the site and ground. | The first Capacity Market auction and pre-qualification for the first CfD auction were delivered in 2014, and we remain on track to complete our first round of CFD Auctions in 2015. | Start date represents start of project following the EMR White Paper of July 2011. End date represents the expected conclusion of the project following award of contract and transition of contract management to the Counterparty body. End date estimated as being in 2015/16. | Start date represents the start of the project following the publication of the EMR Operational Framework in November 2012. The predicted end date represents the formal closure of the project. The schedule for the FID Enabling for Renewables project has always been dependent on progress on key elements of the enduring Electricity Market Reform (EMR) Programme, including the development and publication of the EMR Delivery Plan and the development of the CfD standard terms. Investment Contracts were awarded in April 2014. | The programme commenced following publication of the Managing Radioactive Waste Safely (MRWS) White Paper in June 2008. In July 2014, the Government published a White Paper on a revised siting process. Planning assumptions will be kept under review by the developer, Radioactive Waste Management (RWM). | Progress against the major milestone (the "1 million homes" target) is on schedule. | The Start Date represents when engagement with the market began with industry days and pre-qualification. The End Date marks the completion of the scope of the Client Specification. | The start date reflects Royal Assent to the Energy Act 2008, which includes the legal powers that underpin the RHI. DECC opened the domestic RHI for applications in April 2014 and implemented extensions to the non-domestic scheme in May 2014. The project end date allows for a post-implementation phase and will be reviewed before the end of 2014/15. | On schedule for 2020. (The Data and Communications Company issued a consultation in Q4 2014 on revised plans for delivery of its initial operational services.) |
| 2014/2015 Budget (£million) | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | £162.86m | £36.10m | £3.68m | £1.02m | £26.38m | £164.00m | £428.00m | £231.79m | £11.38m |
| 2014/2015 Forecast (£million) | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | £162.86m | £35.10m | £6.61m | £1.18m | £26.38m | £164.00m | £390.00m | £233.00m | £13.14m |
| 2014/2015 Variance (£million) | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | £0.00m | -£1.00m | £2.93m | £0.15m | £0.00m | £0.00m | -£38.00m | £1.21m | £1.76m |
| 2014/2015 Variance %age | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | 0% | -3% | 79% | 15% | 0% | 0% | -9% | 1% | 15% |
| Total budgeted whole life costs (£million) (including non-government costs) | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | £1,678.22m | £47,513.95m | £14,470.33m | £22,486.20m | £11,252.48m | £4,723.61m | £3,860.00m | £43,658.13m | £19,258.00m |
| Departmental narrative on budget/forecast variance for 2014/15 (if variance is more than 5%) | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | Budget variance less than 5% | Budget variance less than 5% | Project costs relate to the project team and external technical, legal and financial advisers. In Q2 2014/15 an overspend was forecast against the 2014/15 budget due to changes to the project timetable. Additional budget was sought in DECC's mid year review. | Project costs relate to the project team and external technical, legal and financial advisers. In Q2 2014/15 an overspend was forecast against the 2014/15 budget due to changes to the project timetable. Additional budget was sought in DECC's mid year review. | Budget variance less than 5% | Budget variance less than 5% | The Budget values reflect the plan assured funding for Magnox, the forecast values reported here reflect the new contract now that the competition has been concluded and share transfer completed. | Budget variance less than 5% | The 2014/15 forecast is £13.14M which includes an increase of £1.76M to fund additional assurance and risk reduction activities in line with recommendations from the National Audit Office and MPA Review. |
| Departmental narrative on budgeted whole life costs | Data exempt under Section 43(2) of the Freedom of Information Act (2000) | 1. The budgeted cost is to decommission the Dounreay Site and to take it to its Interim End State (i.e. a defined condition for buildings, waste and land.) 2. The cost of the scope has not changed since Q2. The WLC figure is calculated in nominal terms. | The whole life cost for EMR now includes the estimated support costs for both Contracts for Difference and Capacity Market, resulting in a significant increase compared to earlier estimates, which only included expenditure that is not levy funded. £47,226.29m of the whole life cost is gross Levy Control Framework and levy funded expenditure. The whole life cost includes the estimated cost of CfD support payments within the agreed Levy Control Framework cap of £7.6 billion up to 2020/21, which covers all DECC’s low-carbon electricity levy-funded policies (i.e. CfD, Renewables Obligation, small-scale Feed-in Tariffs and investment contracts). For the Capacity Market, the estimated gross costs are based on an assumption of annual capacity auctions for the duration of state aid approval for the policy (i.e. until 2024/25) but ignore the approximately equivalent savings we forecast from a lower wholesale price. These assumptions are based on our latest view of how EMR will be delivered, and the most recent DECC modelling that informed the Energy and Emissions Projections publication in November 2014. However, there is considerable uncertainty around the actual level of support costs under both mechanisms, particularly given uncertainties about the evolution of demand and fossil fuel prices over the period. The WLC figure is calculated in nominal terms. | The whole life cost (WLC) includes the programme's costs under the Levy Control Framework (LCF), which sets annual limits on the overall costs of all DECC’s low carbon electricity levy-funded policies until 2020/21. These comprise the Renewables Obligation, small-scale Feed-in Tariffs and Contracts for Differences (including Investment Contracts). The annual cap in 2020/21 has been set at £7.6 billion, a level which will enable us to meet our low carbon and renewables ambitions. The overall costs of all DECC’s low carbon electricity levy-funded policies has not previously been included in the published WLC of this programme, and in this case accounts for £14,451.93m of the WLC. The remainder of the WLC is costs for the policy/delivery team. The WLC figure is calculated in nominal terms. | The whole life cost (WLC) includes the programme's costs under the Levy Control Framework (LCF), which sets annual limits on the overall costs of all DECC’s low carbon electricity levy-funded policies until 2020/21. These comprise the Renewables Obligation, small-scale Feed-in Tariffs and Contracts for Differences (including Investment Contracts). The annual cap in 2020/21 has been set at £7.6 billion, a level which will enable us to meet our low carbon and renewables ambitions. The overall costs of all DECC’s low carbon electricity levy-funded policies has not previously been included in the published WLC of this programme, and in this case accounts for £22,481.72m of the WLC. The remainder of the WLC is costs for the policy/delivery team. The WLC figure is calculated in nominal terms. | Whole life cost figures represent the estimated cost of designing, constructing and operating the GDF out to 2130s. Note that the costs reported here only cover costs related to a GDF for legacy waste and waste arising from the existing fleet of nuclear reactors, it does not include any provisions for waste disposal from a new nuclear build programme. The WLC figure is presented in real terms due to the long timescales associated with this project. | The WLC figure consists of: • All Energy Company Obligation (ECO) costs (average cost scenario) to be borne by energy suppliers as detailed in The Future of the Energy Company Obligation Impact Assessment (22/7/2014) • Private Rental Sector (PRS) costs (those for landlords). This calculation is based on the estimated costs from the published consultation stage Impact Assessment (IA). • Government expenditure, including resource, running and administration costs; as well as capital costs including Green Deal Home Improvement Fund (GDHIF) and Green Deal Communities (GDC) funding, and Green Deal Finance Company (GDFC) investment costs. These figures represent allocated budget, not actual spend. The WLC figure is calculated in nominal terms. | WLC cover the costs of decommissioning the 10 Magnox and 2 RSRL sites and taking them into their Care and Maintenance (C&M) states. They also cover the costs of processing and managing the resultant radioactive and non radioactive wastes arising from decommissioning activities. Finally the WLC address the establishment of a "hub" facility to carry out surveillance, and if required maintenance ops on the sites after they enter their C&M states. The WLC figure is calculated in nominal terms. | RHI budgets are only set up to 2015/16 so WLC (which run to 2040) is illustrative only and assume smooth scheme deployment growth up to 2020. This reflects both the domestic and non-domestic RHI, with non-domestic RHI costs lasting 20 years and domestic costs lasting 7 years. As RHI cost estimates run to 2040 inflation estimates have a very large impact. The WLC figure is calculated in nominal terms. | Whole Life Costs are presented in nominal terms for comparability with other programmes. Previous figures were expressed in 2011 real prices, for consistency with the published Smart Meter Programme Impact Assessment. Changes in the provided numbers are solely driven by the change in methodology, not by underlying cost changes. |
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| *The Whole Life Cost figures are based on Q2 2014/15 projections and represent the Department’s best assessment of future expenditure at that time. They are based on a combination of commercial intelligence and DECC’s modelling outputs, drawing on DECC’s projections of generation mix, electricity demand and fossil fuel and carbon prices published in autumn 2014. Uncertainties over the future evolution of key variables used by DECC as modelling input assumptions for these projections must be taken into account when interpreting these figures. | Not set | Not set | Not set | Not set | Not set | Not set | Not set | Not set | Not set | Not set |