UK govt says no new low-carbon electricity levies till 2025

Author: Images Money. License: Creative Commons, Attribution 2.0 Generic.

November 22 (Renewables Now) - According to the UK government's Autumn Budget, presented today, there will be no new low-carbon electricity levies until 2025.

The budget says that to keep energy costs as low as possible, the government will not introduce new low-carbon electricity levies until the burden of such costs are falling, which, based on the current forecast, is 2025.

All existing contracts and commitments will be respected, including the commitment of up to GBP 557 million (USD 739m/EUR 627m) for further Contracts for Difference (CfD).

Still, the document explaining the Control for Low Carbon Levies, the government's new control for costs on bills after its announcement in the Spring Budget to end the Levy Control Framework (LCF), says that "new levies may still be considered where they have a net reduction effect on bills and are consistent with the government’s energy strategy." 

The Renewable Energy Association (REA) called for clarity about how the government intends to bring new projects forward, including less developed technologies such as tidal and advanced waste-to-energy. Many new solar photovoltaic (PV) projects will be able to go ahead without subsidies but still need a route to market, it added.

"Let’s be clear; the solar industry is not asking for any new public support – but we urgently need just some of the tax breaks available to fossil fuels today," said Leonie Greene, head of external affairs at the Solar Trade Association (STA). "We also believe solar can win effectively subsidy-free clean power (CfD) contracts today, so we now hope to see clean power auctions for established technologies resume on that basis," Greene also said.

(GBP 1 = USD 1.327/EUR 1.127)  

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Browse all articles from Plamena Tisheva

Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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