Britain’s system for controlling the soaring costs of green energy subsidies is to be abolished and replaced with new controls in the last year of the present parliament. The Levy Control Framework was established in 2011, setting an annual cap on the costs levied on energy bills to support wind, solar and other renewables. The cost was due to rise to £7.6 billion in 2020-21, but spending is forecast to hit almost £9 billion, or £110 per household per year. The overspend has led to widespread criticism that the design and implementation of the framework has been ineffectual. The government had promised to set out the long-term future of the levy mechanism in the budget. Instead, it announced that it would be “replaced by a new set of controls” that would be “set out later in the year”. It is understood that the existing cap will remain in place until 2020-21, with the new scheme to follow after that. The Renewable Energy Association said that the announcement meant increased uncertainty for investors. “The industry was expecting an announcement regarding the future budget levels and structure but this has been delayed and instead we face a new regime and no clarity on the proposed new ‘set of controls’,” it said.
Times 9th March 2017 read more »