A number of you have been in touch to ask for more details on the assurances we have received from Government that renewables support schemes will not be affected by the Government’s ‘green taxes’ review.
Our CEO Nina spoke with DECC on Wednesday afternoon and was assured that they would not be affected. However, having had continued queries from members, we have requested written reassurance, which we have pasted below. DECC have agreed that we can share this with members, and we have also asked them to put this statement up on their website, which they are working on:
“The Government is looking at how to get people’s energy bills as low as possible to help hard-pressed families. We’ve already increased competition, brought new players in to the market to offer consumers real choice and the most vulnerable are getting direct help with their bills this winter. We’ll continue this work to make sure consumers are getting a good deal.
“No one is talking about changing investment incentives for renewables, such as the Renewables Obligation, Contracts for Difference and feed in tariffs, which are essential for investor confidence in the renewables sector and our commitments to a low-carbon economy. Between now and 2020, the support we give to low carbon electricity will increase year-on-year to £7.6 billion – a tripling of the support for renewable energy.”
It has been mooted in the press that funding could move however from levies to general taxation, but this should not affect the functioning of the schemes. Press reports and comments from Ministers, including Treasury Minister Danny Alexander, strongly suggest that the outcome of the ‘green taxes’ review will be announced by Chancellor George Osborne in the Autumn Statement on 4th December.
To view the full range of energy and climate change policies funded by levies on energy bills and their current typical costs, please see p. 78 of this document: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/172923/130326_-_Price_and_Bill_Impacts_Report_Final.pdf
Head of Policy