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Levy Control Framework: a chance for budget discipline or a political fiction?

Speakers at the British Institute of Energy Economics’ meeting discussing ‘policy, discontinuity and uncertainty in energy markets’ agreed on one thing: Decc should set out its strategy, and soon, if it wants to maintain investment

The Levy Control Framework (LCF) came under debate at this year’s BIEE meeting. Former energy secretary Ed Davey told attendees that “having a budget is a good thing, and reassuring for investors”, but he insisted that “the government is misleading people about whether the LCF is overspent”. He said the headroom was “designed to compensate [for the increased spend] if energy prices come down”, and there was expected to be attrition because “some projects that gained Contracts [for Difference] were unlikely to go ahead”.

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