NAO says UK Government has failed in forecasting costs of renewable energy support

NAO says UK Government has failed in forecasting costs of renewable energy support

The National Audit Office (NAO) is an independent Parliamentary body which audits the financial statements of all central government departments, agencies, and other public bodies in the UK. On 18thof October 2016, it published a report stating that the UK government has failed to accurately forecast the costs of renewable energy support which can result in higher consumer costs in 2020.

Levy Control Framework (LCF) was established to control consumer-funded costs of energy policies by the Department of Energy & Climate Change (and later merged with Department of Business, Energy & Industrial Strategy) and HM Treasury. LCF sets a cap on costs of £7.6 billion for renewable obligation, feed-in tariffs, and contracts for difference (CfD).