From CO2 Target
to Distributed Cost
to Distributed Cost
Cost-flow Categories · Where it Lands
Core Audit Questions
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1What is measured, and what is modelled?Direct costs sit on bills and price tags — measurable. Indirect costs flow through prices, taxes, and timing — usually modelled, often imperfectly. The audit asks which of each is in the headline number.
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2Which costs are direct, and which are transferred?Direct costs are visible on the household bill or invoice. Transferred costs travel via supply chains, contract terms, and tax structure — invisible at the point of purchase but real in the budget.
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3Who pays first, and who pays later?Today's energy bills hit today's household budgets. Deferred costs sit on government balance sheets and replacement cycles — payable by people who didn't choose them.
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4What distributional effects are omitted?Headline modelling reports national averages. The audit asks which sub-populations and timeframes are missing from the average — and whether the omitted detail would change the policy verdict.
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5What trade-offs are justified?The framework's signature question. The CO2 target licenses concern; it does not pre-justify which payer category absorbs the cost of meeting it. That decision needs its own audit.