The UK’s Levy Control Framework for renewable electricity support: effects and significance

Lockwood, Matthew (2016) The UK’s Levy Control Framework for renewable electricity support: effects and significance. Energy Policy, 97. pp. 193-201. ISSN 0301-4215

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There is a long-standing debate over price vs. quantity approaches to supporting the deployment of renewable electricity technologies. In the context of a a recent shift from quantity to price-based support, the UK has also introduced a new form of budgetary framework, the Levy Control Framework (LCF). The introduction of the LCF has been very important for investors but has received relatively little attention in the academic literature. The paper gives an overview of the LCF, explores its effects on renewables policy, on consumers and on investor confidence arguing that an unintended consequence of its introduction has been to increase uncertainty, through interactions with underlying support mechanisms. A number of problems with the current scope and design of the LCF are noted. It is argued that the LCF is best understood as aimed at avoiding a political backlash against renewable support policy in a context where the benefits of such policy are concentrated economically and socially. The paper concludes by placing the LCF within a wider context of a shift towards greater budgetary control over renewable energy support policy across European countries.

Item Type: Article
Schools and Departments: University of Sussex Business School > SPRU - Science Policy Research Unit
Subjects: J Political Science > JF Political institutions (General) > JF1338 Public administration
Depositing User: Matthew Lockwood
Date Deposited: 10 Jan 2019 13:11
Last Modified: 02 Jul 2019 13:21

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