Ed Davey (Liberal Democrat)

The Department of Energy and Climate Change requires a cash advance of \xA34,851,000 for financial year 2012-13 from the Contingencies Fund to support urgent preparatory work by National Grid Plc, to initiate recruitment for a panel of technical experts, and to fund external advisers in relation to transitional arrangements for early investors. This work needs to begin before parliamentary approval can be obtained of both the specific enabling legislation and the necessary estimate.

These measures are designed to ensure sufficient investment comes forward in time to replace old generating plant due to close from 2016 onwards with new low carbon plant. This will ensure continued security of supply for the UK and will significantly contribute towards achievement of our legally binding EU 15% renewable energy target, and the decarbonisation targets established by virtue of the Climate Change Act 2008.

Accordingly, parliamentary approval for additional resources of \xA34,851,000 for this new service will be sought in a supply estimate for the Department of Energy and Climate Change. Pending that approval, urgent expenditure estimated at \xA34,851,000 will be met by repayable cash advances from the Contingencies Fund.

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