The government’s new energy supply strategy has been delayed after the Treasury Department reportedly rejected some of the associated costs.
Boris Johnson promised the plan in “days” on March 9 to get a grip on energy prices and reduce dependence on Russia.
But the date was pushed back as a Downing Street spokesman said the energy strategy would not be released this week as expected.
The plan will identify a number of ways in which more energy can be produced in the UK.
It is believed to include strategies for nuclear and renewable energy, plans to improve household energy efficiency and a way to increase oil and gas production in the North Sea.
However, a source told the BBC that the Treasury has raised concerns about the long-term cost implications of a target outlined by Mr Johnson – to produce 25% of the UK’s energy from nuclear power by 2050 – as nuclear power plants are extremely expensive to build.
And sources close to the work said that was the main area keeping the strategy going.
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The BBC understands that opinions are divided on other elements of the strategy as well.
Some ministers and Tory MPs had urged the government to reconsider 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 at odds over whether planning laws in England should be reviewed to make it easier to approve new onshore wind farms.
Business Minister Kwasi Kwarteng and Leveling Up Minister Michael Gove are in favour, but some other cabinet ministers remain opposed.
As some of the targets set out in the strategy will be years – even decades – away, the cost of doing so would be outside the current spending review period.
It is understood that the commitment to longer-term funding in future spending reviews is one of the complications that has caused delays.
It is also anticipated that the strategy will outline community benefits and incentives for renewable energy sources, including onshore wind power.
One idea being considered by ministers is to make electricity bills cheaper depending on people’s proximity to an onshore wind farm.
The Prime Minister’s official spokesman on Monday confirmed the strategy’s further delay but said it was “a significant piece of work”, adding: “It is right that we are taking the right time to do this.
“We will make plans for the release as soon as possible.”
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