Rt Hon Lord Lilley

    Peter Lilley: To ask the Secretary of State for Energy and Climate Change, with reference to the report, The Size and Performance of the UK Low Carbon Economy, published in March 2015, whether estimates of gross value added for electricity generation include (a) the value of renewable obligation certificates and (b) the element of the feed-in tariff and Contract for Difference prices which are above the market price of energy.

    Andrea Leadsom: The report on the Size and Performance of the UK Low Carbon Economy is based
    on a bottom-up analysis of company accounts from those businesses
    participating in the sector.

    The report estimates gross value added within the sector by taking gross
    profit less the sum of employment costs, depreciation and amortisation. This
    definition is consistent with the approach generally taken in official
    statistics as a measure of the value of goods and services produced in an
    area, industry or sector of an economy.

    To the extent they are included within company accounts, the report captures
    the value of renewable obligation certificates and the element of the
    feed-in tariff which is above the market price of energy. However, this will
    exclude payments to householders and other non-business or charity
    electricity generators.

    No element of Contracts for Difference (CfDs) will be included in the
    estimates as the report only covers the period 2010 to 2013, before the
    introduction of CfDs.

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