The House of Commons Public Accounts Committee (PAC) has called on the UK Government to do more to demonstrate the value for money of consumer-funded low carbon energy schemes.

In a report into the Levy Control Framework – which is designed to help control the costs of Contracts for Difference, Feed-in Tariffs and the Renewables Obligation, the three government schemes to support low-carbon generation – MPs accused the former Department of Energy & Climate Change (DECC) of having a “culture of optimism bias”.

They said the framework has “suffered from a lack of transparency, rigour and accountability”.

The report said the schemes are likely to add around £110 to the typical household’s annual energy bill in 2020, £17 more than previously budgeted.

Government has ‘failed’

Meg Hillier, Chair of the PAC, said: “Bill-payers deserve to know whether or not the energy schemes they fund represent good value.

“The Government has failed to meet its commitment to report annually on the impact these policies are having on bills.

“Current arrangements just aren’t good enough.”

> Download the report