The Commons Public Accounts Committee has issued a report about the award of renewables contracts. It is not a pretty sight.
By awarding early contracts worth up to £16.6 billion to eight renewable electricity generation projects without price competition, the Department of Energy and Climate Change (the Department) failed to adequately consider how to secure best value for consumers. In committing 58% of the total funds available for renewable contracts under these transitional arrangements, the Department has severely constrained the amount available to be awarded under new arrangements through price competition, reducing the opportunity to test the market and secure the best value for consumers. Under the terms of these contracts the Department failed to defend consumers’ interest. For example, the risks associated with inflation will be met by consumers with inflation measured on the Consumer Prices Index. At the same time any benefit from excess profits will be retained by the developers as there are no claw-back clauses.