Undermining renewables

According to the Renewable Power Association, the UK Government is 'sabotaging' growth in the UK's renewable energy industry.

New business rates set by UK Deputy Prime Minister Prescott will raise bills for green generators by up to 700%, while rates for nuclear and fossil fuel plants are set to fall dramatically.

This situation arises from the way in which business rates will be calculated from April. The formula used by the Valuation Office makes rates proportional to the receipts of each plant. In the case of renewable generators this includes the incentive payments for sustainable energy sources. Since 2002, all electricity consumers have been paying a small proportion of their bills to support renewable power. Now, the Government will effectively be taxing these incentive payments through the rating system.

Trade Associations representing the sector are exasperated by this measure. "This is another nail in the coffin of the Government's renewable energy targets," said Philip Wolfe of the Renewable Power Association. "We have been urging the Department of Trade and Industry, which is responsible for renewables, to work with the ODPM's business rates department to find a sensible solution".