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Energy and Committee Office House of Commons 7 Millbank London SW1P 3JA Tel: 020 7219 4610 Fax 020 7219 5998 Email: [email protected] Website: wwwparliament.uk/ecc

Rt Hon Edward Davey MP Secretary of State Department of Energy and Climate Change 3 Whitehall Place, London, SW1A 2AW

27 February 2014

DECC’s Supplementary Estimate 2013-14

The Committee has asked me to write to you regarding the Department’s Supplementary Estimate 2013-14. We have a number of questions as set out below:

1. What is the additional Nuclear Decommissioning Authority income of £214 million forecast (subheads J and F) primarily derived from, and what is it to be spent on?

2. Was the transfer of £21 million of Green Deal funding (subhead A) to the devolved administrations a consequential, under the Barnett arrangements, of decisions on funding from Green Deal in England? Is the overall funding for Green Deal in England affected by the transfer? What is the total reduction in Green Deal funding in England for 2013-14, compared to the original budget and how much of this is being carried forward into future years?

3. Can you give further explanation of why £757 million (subhead M) has been returned to the Mineworkers’ Pension scheme, and, in particular, what has led to the additional £700 million from the Investment Reserve?

4. What specifically will the £18 million allocated for Carbon Capture and Storage support (subhead B) (described in the memorandum as “FEED studies”)?

5. Why is funding for the being reduced by only £21 million (subhead Q) , when the mid-year report suggested the forecast underspend could be as high as £100 million? Is it really necessary to have a margin of safety of nearly £80 million, or have circumstances altered since the mid-year report was written?

We are conscious that Parliament is due to consider DECC’s Supplementary Estimate on 3 March and, if time permits, we would be grateful if you could provide a response to these issues during the debate. We would also be grateful if you would respond formally to us in writing as we may wish to publish this letter and your response to it.

Energy and Climate Change Committee Committee Office House of Commons 7 Millbank London SW1P 3JA Tel: 020 7219 4610 Fax 020 7219 5998 Email: [email protected] Website: wwwparliament.uk/ecc

Tim Yeo

Chair, Energy and Climate Change Committee