02 October 2014
The Levy Control Framework (LCF) looks likely to be tested again in the coming years, partly due to renewables output continuing to exceed expectations. As the Government’s control on green policy costs, it has already triggered at least one policy change in recent years. While its operation will limit the scale of cost increases consumers will inevitably face, it also puts at risk some of the principles of the overarching energy policy. The LCF highlights the fine line the Government has to tread between energy security and decarbonisation commitments, and its desire to keep consumer bills in check.