The Government’s spending watchdog scolded the Department of Business, Energy and Industrial Strategy for changing the limits on which technologies could take part in the auction without thoroughly testing the impact.
“The Department did not highlight the change to its programme management board or test whether it was likely to lead to unintended consequences,” the NAO report said. “In some situations, the design change could have produced better value for money for consumers, but the Department did not assess how likely these were to occur in practice”.
The unnecessary cost hike has emerged alongside a fresh report from MPs on the Environmental Audit Committee which warned that the UK’s green investment has plummeted to its lowest level in ten years, in a “dramatic and worrying collapse” for the energy industry.
The report revealed that investment in clean energy fell by 10pc in 2016 and 56pc in 2017, to its lowest level since 2008.
“Billions of pounds of investment is needed in clean energy, transport, heating and industry to meet our carbon targets,” said Mary Creagh, the committee’s chair. “The Government must urgently plug this policy gap and publish its plan to secure the investment required to meet the UK’s climate change targets.”
Specifically the committee has called on Government to provide greater clarity on how it intends to deliver the Clean Growth Strategy by the 2018 Budget, and explore the potential of Sovereign Green Bonds.