Veolia slams government’s cut in renewable subsidies28 July 2015

Government is cutting subsidies for biomass Government is cutting subsidies for biomass

According to Veolia the government U-turn risks sending the country back to the dark ages

The Government's recent cutting of subsidies for biomass, anaerobic digestion and biogas, as well as solar and wind, will make very little difference to household bills but will impact heavily on energy security and in the long term increase bills according to a leading environmental solutions company.

"With COP21 on the horizon we must be looking at how we can help reduce emissions, fight climate change and find alternative ways to power the UK," Estelle Brachlianoff, Senior Executive Vice-President, UK & Ireland of environmental solutions company Veolia commented. "This means moving away from our reliance on fossil fuels and continuing to invest in renewables.

"What I don't understand is why the Government would apply the carbon levy on renewable energy plants which are carbon-positive – it's illogical.

"Even worse it removes the business case for existing renewable energy plants that were predicated on the investment avoiding carbon tax until 2023.

"This retrospective legislation will harm the reputation of the UK as a safe and secure investment market as its legislators are no longer as good as their word."

Brachlianoff was reacting to the news last week that the government were taking measures to deal with a projected over-allocation of renewable energy subsidies. In its statement the Department for Energy and Climate Change (DECC) said that reducing energy bills for hard working British families and businesses and meeting climate goals in the most cost effective way are Government priorities.

"My priorities are clear," Amber Rudd, Energy and Climate Change Secretary, said. "We need to keep bills as low as possible for hardworking families and businesses while reducing our emissions in the most cost-effective way.

"Our support has driven down the cost of renewable energy significantly. As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies. We're taking action to protect consumers, whilst protecting existing investment".

Financial support for renewable technologies primarily comes in the form of subsidies which are paid for via energy bills. The total amount of subsidies available is capped via a mechanism called the Levy Control Framework (LCF).

Mark Venables

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Department of Energy & Climate Change

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