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Departmental Expenditure Limit (2009-10)

Volume 501: debated on Tuesday 24 November 2009

Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department of Energy and Climate Change Departmental Expenditure Limit (DEL) will decrease by £22,700,000 from £3,125,377,000 to £3,102,677,000.

Within the DEL change, the impact on resources and capital are as set out in the following table:

£’000

Change

New DEL

Voted

Non-Voted

Voted

Non-Voted

Total

Resource DEL

39,044

-39,044

-704,781

1,809,944

1,105,163

Of which:

Administration Budget *

-

-

93,512

-

93,512

Near Cash in Resource DEL *

39,044

-39,044

-728,313

1,854,438

1,126,125

Capital DEL **

-144,129

121,429

682,201

1,322,404

2,004,605

Less Depreciation ***

-

-

-2,987

-4,104

-7,091

Total DEL

-105,085

82,385

-25,567

3,128,244

3,102,677

*The total of ‘Administration Budget’ and ‘Near Cash in Resource DEL’ figures may well be greater than total Resource DEL, due to the definitions overlapping.

** Capital DEL includes items treated as resource in estimates and accounts but which are treated as Capital DEL in budgets.

*** Depreciation, which forms part of Resource DEL, is excluded from the total DEL in the table above, since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

Resource DEL

The Resource element of the DEL remains unchanged with an increase in the voted element of Resource DEL of £39,044,000 offset by a decrease of £39,044,000 in the non-voted element of Resource DEL.

Voted resource DEL

The £39,044,000 increase in the voted element of Resource DEL arises from:

a decrease of £34,043,000 in nuclear decommissioning authority operating appropriations-in-aid

a transfer from non-voted Resource DEL of £5,001,000.

Non-voted Resource DEL

The £39,044,000 decrease in non-voted Resource DEL arises from:

a decrease of £34,043,000 in nuclear decommissioning authority DEL offsetting the reduction in appropriations-in-aid

a transfer to voted Resource DEL of £5,001,000.

Capital DEL

The decrease in the Capital element of the DEL of £22,700,000 arises from a decrease in the voted element of Capital DEL of £144,129,000 and an increase of £121,429,000 in the non-voted element of Capital DEL.

Voted Capital DEL

The £144,129,000 decrease in the voted element of Capital DEL arises from:

a transfer from the Department for the Environment, Food and Rural Affairs of £4,400,000 for Anaerobic digestion

a transfer to the Department for Business, Innovation and Skills of £25,000,000 for the UK Innovation Investment Fund

a transfer to the Department for Business, Innovation and Skills for the Technology Strategy Board of £2,100,000 for the fuel cells and hydrogen demonstration programme

a transfer from non-voted Capital DEL of £170,000

an increase of £121,599,000 in nuclear decommissioning authority non-operating appropriations-in-aid.

Non-voted Capital DEL

The £121,429,000 increase in the non-voted element of Capital DEL arises from:

a transfer to voted Capital DEL of £170,000

an increase of £121,599,000 in nuclear decommissioning authority DEL offsetting the increase in non-operating appropriations-in-aid.

OFGEM DEL (2009-10)

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Office of Gas and Electricity Market’s DEL will be increased by £1,000 from £651,000 to £652,000 and the administration budget will be increased by £1,000 from £701,000 to £702,000.

New DEL

£'000

Change

Voted

Non-voted

Total

Resource DEL

1

702

0

702

Of which: *

Administration budget

Near-cash in RDEL

1

1

702

-93

0

700

702

607

Near-cash in RDEL

1

-93

700

607

Capital DEL**

0

950

0

950

Depreciation

0

-1000

0

-1000

Total

1

652

0

652

*The total of the ‘Administration Budget’ and ‘Near-cash in Resource DEL’ figures may well be greater than total Resource DEL, due to the definitions overlapping

**Capital DEL includes items treated as resource in estimates and accounts but which are treated as Capital DEL in budgets.

Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The change in the resource element of the DEL arises from a token increase in administration costs. The token increase is necessary to bring to Parliament’s attention an increase in administration costs of £4,001,000 offset by an increase in appropriations in aid of £4,000,000. The increase in administration costs is as a result of additional unplanned expenditure on administration of the Smart Meter project, and the offshore transmission tender process.

There is no change in the capital element of the DEL.