The PM promised the plan “in days”, but the BBC understands the Treasury is worried about costs.
Image source, PA Media
The government’s new energy supply strategy has been delayed, after reports the Treasury resisted some of the costs involved.
Boris Johnson promised the plan in “days” on 9 March to help tackle energy prices and reduce reliance on Russia.
But the date has been pushed back, with a Downing Street spokesman saying the energy strategy would not be released this week as expected.
The plan will outline a range of ways to produce more energy in the UK.
It is thought to include strategies for nuclear energy and renewable energy, plans to make homes more energy efficient and a route to increasing North Sea oil and gas production.
But a source told the BBC that the Treasury had raised concerns about the long-term cost implications of a target Mr Johnson had outlined – producing 25% of the UK’s energy through nuclear by 2050 – as nuclear power plants are extremely expensive to build.
And sources close to the work said it was the primary area holding the strategy up.
The BBC understands there are split opinions over other elements of the strategy too.
Some ministers and Tory MPs had pushed for the government to re-examine fracking, but it is not expected to play a significant role.
The government’s moratorium on fracking will remain in place unless they believe the science has changed and it is deemed safe.
Cabinet ministers are also split on whether planning laws in England should be reviewed to make it easier to approve new onshore wind farms.
Business Secretary Kwasi Kwarteng and Levelling Up Minister Michael Gove are in favour, but some other cabinet ministers remain opposed.
Because some of the targets set out in the strategy will be years – even decades – away, the cost of them would fall outside the current Spending Review period.
It’s understood that commitment to longer-term funding at future spending reviews is one of the complications that has led to delay.
Onshore wind
It is also understood the strategy will outline community benefits and incentives for renewable energy sources, including onshore wind.
An idea being considered by ministers is making energy bills cheaper depending how close people live to an onshore wind farm.
The PM’s official spokesman confirmed the further delay to the strategy on Monday, but said it was “a significant piece of work”, adding: “It is right we take the right amount of time to do it.
“We will set out plans for publication as soon as possible.”