DECC makes contingency plans to delay FiT cut
Green policy news – by GreenWise staff
19th January 2012
The Department of Energy and Climate Change (DECC) has announced contingency plans to delay the cut to the Feed-in Tariff (FiT) for solar electricity, should it lose its case in the Court of the Appeal.
In a statement,
DECC said it was today laying before Parliament draft licence modifications which makes provision for a reduced
FiT rate from April 1 2012 onwards for new
solar PV installations with an eligibility date on or after March 3 2012. The contingency plans are being put into place because the Government is still awaiting a decision from the
Court of Appeal on its case against the High Court decision that its previous plans to cut the FiT from December 12 were unlawful.
"I know this is a difficult time for the sector and I want to do as much as I can to end the current uncertainty created by the legal challenge," Energy and Climate Change Minister Greg Barker said. "We must reduce the level of FiTs for solar panels as quickly as possible, to protect consumer bills and to avoid bust in the whole Feed-in Tariffs budget.
"We’re appealing against the court ruling that’s challenged our proposal for a December reference date. This remains our aim, and we are waiting for the judgment of the Court of Appeal. But this is too important for us to sit and do nothing while we wait. Today we’re putting in place a contingency that will bring a 21pence rate into effect from April for installations from March 3."
Welcome move
DECC’s decision is likely to be welcomed by the solar industry, which has been reeling ever since DECC announced on October 31 it planned to slash the FiT by more than 50 per cent on solar installations completed on or after December 12 this year – giving the industry just six weeks to prepare for the deep cuts.
A High Court case brought against it by Friends of the Earth and two solar companies – Solarcentury and Homsun – in December ruled that the cuts were unlawful.
However, DECC sought to appeal against the High Court decision and that case still has not reached a decision, leading to further uncertainty for the solar industry.
And in a sign that it might soften its original position, Barker said should DECC win its appeal case it would "retain the option" of introducing a December reference date.
"In the circumstances we believe this gives the industry as much certainty as is possible. And it puts us in a better position to protect the budget for everyone involved," he added.
DECC said it would announce the outcome of its consultation into the FiT, which closed on December 23 2011 – including a set of reforms – by February 9. It said it had received over 2,000 responses to the consultation.
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