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Wind power firms threaten to sue government over rumoured subsidy cuts

According to various reports, the Treasury has been demanding a 25 per cent cut to the subsidies, following pressure from Conservative backbenchers who are mounting an increasingly vocal campaign against wind farms and renewable energy subsidies.

RenewableUK warns deep cuts to Renewable Obligation Certificate banding could breach Electricity Act

Wind energy companies have warned they could sue the government if it imposes drastic cuts to subsidies that derail the expansion of the renewable energy industry.

The Department of Energy and Climate Change (DECC) is later this month expected to confirm cuts to subsidies offered to large-scale renewable energy developers in the form of Renewable Obligation Certificates (ROCs).

DECC's consultation document proposed a 10 per cent cut in the level of ROCs available for onshore wind farms from 1 ROC per Megawatt hour (MWh) currently to 0.9 ROCs/MWh from 2013.

However, according to various reports, the Treasury has been demanding a 25 per cent cut to the subsidies, following pressure from Conservative backbenchers who are mounting an increasingly vocal campaign against wind farms and renewable energy subsidies.

Trade body RenewableUK has consistently argued that any cut greater than 10 per cent would make investment propositions for many wind farms economically unviable and could "kill dead" the onshore wind industry in the UK.

Now it has... more [truncated due to possible copyright]  

RenewableUK warns deep cuts to Renewable Obligation Certificate banding could breach Electricity Act

Wind energy companies have warned they could sue the government if it imposes drastic cuts to subsidies that derail the expansion of the renewable energy industry.

The Department of Energy and Climate Change (DECC) is later this month expected to confirm cuts to subsidies offered to large-scale renewable energy developers in the form of Renewable Obligation Certificates (ROCs).

DECC's consultation document proposed a 10 per cent cut in the level of ROCs available for onshore wind farms from 1 ROC per Megawatt hour (MWh) currently to 0.9 ROCs/MWh from 2013.

However, according to various reports, the Treasury has been demanding a 25 per cent cut to the subsidies, following pressure from Conservative backbenchers who are mounting an increasingly vocal campaign against wind farms and renewable energy subsidies.

Trade body RenewableUK has consistently argued that any cut greater than 10 per cent would make investment propositions for many wind farms economically unviable and could "kill dead" the onshore wind industry in the UK.

Now it has warned that such deep cuts could also contravene the government's own Electricity Act, which states that the Secretary of State must consider the impact of a banding review on the market and the deployment of renewable energy capacity.

RenewableUK spokesman Rob Norris told BusinessGreen that wind energy companies could launch a judicial review against the government if it imposed any cut deeper than 10 per cent.

However, he downplayed reports that RenewableUK was itself preparing a legal case.

"At this stage, RenewableUK is not considering taking legal action over ROC banding," he said. "We are confident that we have made a robust case to government for the cuts in financial support for onshore wind to be no deeper than 10 per cent."

He added that if government attempted to make cuts deeper than 10 per cent and failed to justify the move with technical evidence, the industry as a whole would examine whether a judicial review would be appropriate.

"The government's own established procedure, as laid down in the Electricity Act 1989 (amended 2008), states that any cuts in financial support must be evidence-based, and that the Energy Secretary must take into account the desirability of securing the long-term growth and the economic viability of the renewable energy industries."

DECC is expected to confirm the results of the banding review by 17 July, when Parliament breaks for summer recess.

A spokesman for DECC refused to comment on speculation over the subsidy cuts and said no date had been set for the announcement.

"It is vital that our support for renewable electricity both encourages investment and represents value for money for consumers," he said.

"The government will publish support levels for renewable electricity technologies for the period 2013 to 2017 shortly."


Source: http://www.businessgreen.co...

JUL 6 2012
https://www.windaction.org/posts/34260-wind-power-firms-threaten-to-sue-government-over-rumoured-subsidy-cuts
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