According to a report by Renewable Energy Focus last week, there’s mounting speculation that despite the weeks earlier comments from Energy Secretary Chris Hulme at the Tory Party Conference, the Treasury will force cuts to the feed-in tariffs upon the Department for Energy and Climate Control.
The tariffs were set up this April (2010) and at the time were guaranteed until 31st March 2013, before the figures would be amended. Cuts would normally have been based on available funds and a hoped for decrease in the cost of manufacturing etc.
It’s got the industry so worried that 64 top business leaders have written an open letter to westminster, claiming that any bringing forward of cuts to the feed-in tariffs will seriously dent investors confidence in the UK and would lead to the UK being unable to meet its carbon reduction targets.
“confidence in the clean tech and renewable energy sectors may cause investors to flee altogether”
Any reduction if feed-in tariffs only affects those homeowners and businesses applying for the tariff after the date of any changes to rates – existing ‘members’ and users of the feed-in tariffs should continue to enjoy the rate at which they signed up to.
Read the full report from Renewable Energy Focus by clicking here.
I guess we’re all going to have to wait until the 20th October when the spending review is published.
photo credit: rizka budiati