British businesses are being urged to join the consultation on exemption for energy intensive industries from the indirect costs of the RO/FiT schemes.
As part of its wider Comprehensive Spending Review in November 2015, the Government announced its intention to replace the existing compensation arrangements for renewables obligation (RO) / Feed-in Tariff (FiT) with an exemption scheme.
A consultation, opened on April 1, 2016, covers the eligibility critieria and the mechanism for exempting eligible companies.
The consultation is open to both businesses and the general public, and will be published online.
The deadline for responses is May 27, 2016.
Those wishing to take part in the consultation can do so here.
There seemed to be clear support for the move towards exemption and backdating compensation.
More than half of those surveyed (51%), regardless of whether or not they were eligible, believe that backdating compensation will help businesses stay competitive.
There was also considerable interest in the upcoming consultation, with half of all respondents stating that they would like to take part, and should have their say given the potential implication of the changes upon their businesses.
When asked if they were aware of the proposed changes to RO and FiT, 54% of manufacturers highlighted that they had no knowledge of Government plans.
Head of npower Business Solutions, David Reed, commented: “The proposed exemption would represent good news for the businesses and sectors which are eligible.
“Making regulatory processes more transparent and more straightforward would reduce the burden on businesses and would provide them with greater clarity about their finances.
“A majority of retailers and manufacturers we spoke to were not aware of the upcoming consultation. That’s why we’re working with the Government to host a roundtable event, to explain these upcoming changes to businesses and discuss the proposed benefits.
Reed continued: “In addition, much of the detail is still to be confirmed and so we hope that the policy will be executed in a proportionate way, with the Government being mindful of the potential distributive impact.
“We would encourage all businesses to take part in the consultation and to make sure they receive all the support that they are eligible for.”
npower Business Solutions has released new research on exemption from renewable energy costs in electricity intensive industries, including the finding of its recent survey and a comment from the EEF’s energy policy advisor, Richard Warren.