The Government has failed in its bid to get permission to appeal to the Supreme Court over a High Court ruling which deemed its decision to lower solar feed-in-tariffs was illegal.
In November, the Government announced it was bringing forward the date for its reduction in feed-in tariffs to December 12, 2011, rather than in April 2012 as previously planned and 11 days before the consultation ended on December 23. Friends of the Earth argued this change with little notice was unlawful.
The High Court deemed the ruling was illegal in January only for Government to announce it was to make a formal appeal one week later.
Under the proposals, solar panels installed after December 12 last year would have received reduced Fit payments. For new residential units up to the 4kw band, the rate was cut from 43.3p per kw to 21p per kw.
The plans led to some EIS and VCTs withdrawing offerings or considering changes to product mandates.
The decision to reject the appeal means that any installations built from April 1, 2012, will receive the lower feed-in-tariff rate. All domestic installations finished before March 3 this year will still get the higher 43.3p rate, while those finished between March 3 and March 31, will receive the higher rate until April 1, then it is reduced to 21p.
full article
Monday 26 March 2012
Wednesday 25 January 2012
Government cut to solar tariffs blocked as appeal fails
The court case involved the government's move to halve the payments made to households with solar panels, which it says are unsustainable.
Solar businesses and campaigners had warned thousands of jobs could be lost as a result of the move.
Under the feed-in tariffs programme, people in Britain with solar panels are paid for the electricity they generate.
Confusion
The decision will lead to widespread confusion over what the tariff level is.
The previous tariff was just over 43p per Kilowatt-hour generated.
The new tariff of 21p per kilowatt-hour had been expected to come into effect from 1 April.
But in October, the government said the reduced rate would be paid to anyone who installed their solar panels after 12 December, sparking anger from environmental groups and installers.
The government announced a consultation on the proposals, which closed on 23 December - 11 days after the decision was to have been implemented.
The High Court ruled that changing the tariffs in this way was "legally flawed", a ruling the Court of Appeal has now upheld.
The change had particularly upset industry as it affected projects which may already have been commissioned but not installed.
"This decision has very important implications for the whole renewable energy sector in the UK," said Ben Warren a partner at Ernst and Young.
"It is a clear message that retrospective adjustment of support is not acceptable,"
Appeal
The government has put a contingency plan in place which would see the current tariff, of 43p, remain in place until the start of March.
However, they are also considering appealing in the Supreme Court against the latest ruling, potentially allowing them to return to the cut-off date of 12 December.
A DECC spokesperson said: "The Court of Appeal has upheld the High Court ruling on FITs. We are now considering our options."
They added that it meant there were "no guarantees" on any tariff consumers were offered after 12 December.
The tariff for surplus electricity exported to the national grid remains 3.1p per kilowatt-hour paid in addition to the tariff, and is unaffected by the changes.
Money shortage
There is also uncertainty about the sustainability of the reduced rate - as a rush of installations now may use up the scheme's remaining budget.
"The future of the feed in tariff beyond April 2012 is now hugely uncertain. Government and industry now need to work together to create a sustainable solar industry in the UK," added Mr Warren.
The Renewable Energy Association has called for the overall budget to be increased.
"The government's action and the subsequent court case had together thrown the solar industry into a state of extreme uncertainty," said chief executive Gaynor Hartnell.
"We now want to put this behind us as swiftly as possible, and work with government and supporters to secure a larger budget for small scale renewable energy generation," she added.
full article
Solar businesses and campaigners had warned thousands of jobs could be lost as a result of the move.
Under the feed-in tariffs programme, people in Britain with solar panels are paid for the electricity they generate.
Confusion
The decision will lead to widespread confusion over what the tariff level is.
The previous tariff was just over 43p per Kilowatt-hour generated.
The new tariff of 21p per kilowatt-hour had been expected to come into effect from 1 April.
But in October, the government said the reduced rate would be paid to anyone who installed their solar panels after 12 December, sparking anger from environmental groups and installers.
The government announced a consultation on the proposals, which closed on 23 December - 11 days after the decision was to have been implemented.
The High Court ruled that changing the tariffs in this way was "legally flawed", a ruling the Court of Appeal has now upheld.
The change had particularly upset industry as it affected projects which may already have been commissioned but not installed.
"This decision has very important implications for the whole renewable energy sector in the UK," said Ben Warren a partner at Ernst and Young.
"It is a clear message that retrospective adjustment of support is not acceptable,"
Appeal
The government has put a contingency plan in place which would see the current tariff, of 43p, remain in place until the start of March.
However, they are also considering appealing in the Supreme Court against the latest ruling, potentially allowing them to return to the cut-off date of 12 December.
A DECC spokesperson said: "The Court of Appeal has upheld the High Court ruling on FITs. We are now considering our options."
They added that it meant there were "no guarantees" on any tariff consumers were offered after 12 December.
The tariff for surplus electricity exported to the national grid remains 3.1p per kilowatt-hour paid in addition to the tariff, and is unaffected by the changes.
Money shortage
There is also uncertainty about the sustainability of the reduced rate - as a rush of installations now may use up the scheme's remaining budget.
"The future of the feed in tariff beyond April 2012 is now hugely uncertain. Government and industry now need to work together to create a sustainable solar industry in the UK," added Mr Warren.
The Renewable Energy Association has called for the overall budget to be increased.
"The government's action and the subsequent court case had together thrown the solar industry into a state of extreme uncertainty," said chief executive Gaynor Hartnell.
"We now want to put this behind us as swiftly as possible, and work with government and supporters to secure a larger budget for small scale renewable energy generation," she added.
full article
Wednesday 18 January 2012
cut your energy bills
All of the 'big six' companies have announced small price reductions in the past week, taking the average total annual energy bill from £1,293 to £1,259 — a £34 cut, according to comparison site uSwitch.
British Gas has reduced electricity by 5 per cent with immediate effect. This will mean 5.3million people will save £24 a year on average.
EDF will reduce gas prices by 5 per cent from February 7, allowing 1.4million people to save £36 a year. Scottish & Southern Energy will cut gas prices by 3.8 per cent from March 26. It means 3.5million customers will save £28 a year.
Npower is cutting gas prices by 5 per cent from February 1, so 1.9million gas customers will save an average of £38. For the next two months, it is also waiving the £20 exit fees it charges 140,000 customers on fixed tariffs.
E.ON is cutting electricity prices by 6 per cent from February 27. This means 3.7million people will see an average reduction of £33 and exit fees will also be waived.
Scottish Power will reduce gas prices by 5 per cent, also from February 27, knocking an average £36 off 1.4million people’s bills.
Bills increased by an average of £224 last year, so the recent cuts have only wiped out 15 per cent of this.
Why has this happened?
Wholesale gas and electricity prices have fallen over the past year. British Gas says the 'longer term trend' of gas prices will be for them to rise.
But Adam Scorer, of Consumer Focus, says: 'Companies will respond differently depending on where they think wholesale prices are heading.'
Should I switch to a new deal?
Now that all of the big six suppliers have changed prices, it is a good time to switch because there is a level playing field.
If you are on a fixed tariff, it will depend on when you signed up as to whether you can now save money. You should also calculate if the exit penalties — typically £20 for gas and £20 for electricity — are more than the savings you could make by switching, although Npower and E.ON are waiving these fees.
For example, those on British Gas’s dual fuel deal that expires in June 2012 are currently paying over the odds at £1,217, but those whose deals expire in October 2012 are paying only £1,045 — which is hard to beat, according to comparison site Moneysupermarket.
The average standard tariff is now £1,251. But you can save money by switching to an online deal — where you input your meter readings and receive your bills via email. The cheapest online deal is First Utility's iSave v9 at £1,030, or Scottish Power’s Online Energy Saver 17 at £1,085. If you want a fixed tariff, the cheapest is Ovo’s New Energy Fixed at £1,059.
How do I switch?
If you have access to the internet, you can use a comparison website such as Moneysupermarket, uSwitch or Confused. You can also use This is Money's energy bill finder to switch.
To get the most accurate comparison, you will need your annual usage in kWh (this should be on the back of your bill or on your annual statement) and the exact name of the tariff you are on.
If you don’t have the internet, comparison website uSwitch’s free service ‘Send us your bill’ allows people to send them a copy of their latest energy bill and an adviser will call you back. Send your bill and phone number to FREEPOST USWITCH.
Copies of bills will not be returned afterwards, but will be destroyed. Alternatively, you can call uSwitch on 0800 093 06 07.
Is there anything else I can do?
you should submit a meter reading the day before your price fall comes into effect, to ensure as many days as possible are billed at the lower price. Keep our table to remember when to do it.
Which is the cheapest energy tariff?
The cheapest online tariff is currently First Utility's iSave Dual Fuel V9, with an annual bill size of £1,030. The cheapest of the 'big six' is nPower - with its Go Fix 10, with an annual bill size of £1,078.
However, customers are tied into a fixed contract until 8 April 2013. The cheapest of the 'big six' online, if you do not want to fix your prices, is with Scottish Power for an annual bill size of £1,085.
The cheapest standard plan (which means paying on receipt of the bill) remains EDF Energy for an annual bill size of £1,202.
The cheapest fixed is OVO's New Energy Fixed - this plan is an online and fixed plan. Prices are fixed for one year from live date. Average bill size is £1,061.
The longest fixed is Scottish and Southern Energy's Price Fix 7 - prices are fixed for three years from going live. Annual bill size of £1,307.
These estimations are all based on a medium user consuming 3300kWh electricity and 16,500kWh gas with bill sizes averaged across all regions.
full article
British Gas has reduced electricity by 5 per cent with immediate effect. This will mean 5.3million people will save £24 a year on average.
EDF will reduce gas prices by 5 per cent from February 7, allowing 1.4million people to save £36 a year. Scottish & Southern Energy will cut gas prices by 3.8 per cent from March 26. It means 3.5million customers will save £28 a year.
Npower is cutting gas prices by 5 per cent from February 1, so 1.9million gas customers will save an average of £38. For the next two months, it is also waiving the £20 exit fees it charges 140,000 customers on fixed tariffs.
E.ON is cutting electricity prices by 6 per cent from February 27. This means 3.7million people will see an average reduction of £33 and exit fees will also be waived.
Scottish Power will reduce gas prices by 5 per cent, also from February 27, knocking an average £36 off 1.4million people’s bills.
Bills increased by an average of £224 last year, so the recent cuts have only wiped out 15 per cent of this.
Why has this happened?
Wholesale gas and electricity prices have fallen over the past year. British Gas says the 'longer term trend' of gas prices will be for them to rise.
But Adam Scorer, of Consumer Focus, says: 'Companies will respond differently depending on where they think wholesale prices are heading.'
Should I switch to a new deal?
Now that all of the big six suppliers have changed prices, it is a good time to switch because there is a level playing field.
If you are on a fixed tariff, it will depend on when you signed up as to whether you can now save money. You should also calculate if the exit penalties — typically £20 for gas and £20 for electricity — are more than the savings you could make by switching, although Npower and E.ON are waiving these fees.
For example, those on British Gas’s dual fuel deal that expires in June 2012 are currently paying over the odds at £1,217, but those whose deals expire in October 2012 are paying only £1,045 — which is hard to beat, according to comparison site Moneysupermarket.
The average standard tariff is now £1,251. But you can save money by switching to an online deal — where you input your meter readings and receive your bills via email. The cheapest online deal is First Utility's iSave v9 at £1,030, or Scottish Power’s Online Energy Saver 17 at £1,085. If you want a fixed tariff, the cheapest is Ovo’s New Energy Fixed at £1,059.
How do I switch?
If you have access to the internet, you can use a comparison website such as Moneysupermarket, uSwitch or Confused. You can also use This is Money's energy bill finder to switch.
To get the most accurate comparison, you will need your annual usage in kWh (this should be on the back of your bill or on your annual statement) and the exact name of the tariff you are on.
If you don’t have the internet, comparison website uSwitch’s free service ‘Send us your bill’ allows people to send them a copy of their latest energy bill and an adviser will call you back. Send your bill and phone number to FREEPOST USWITCH.
Copies of bills will not be returned afterwards, but will be destroyed. Alternatively, you can call uSwitch on 0800 093 06 07.
Is there anything else I can do?
you should submit a meter reading the day before your price fall comes into effect, to ensure as many days as possible are billed at the lower price. Keep our table to remember when to do it.
Which is the cheapest energy tariff?
The cheapest online tariff is currently First Utility's iSave Dual Fuel V9, with an annual bill size of £1,030. The cheapest of the 'big six' is nPower - with its Go Fix 10, with an annual bill size of £1,078.
However, customers are tied into a fixed contract until 8 April 2013. The cheapest of the 'big six' online, if you do not want to fix your prices, is with Scottish Power for an annual bill size of £1,085.
The cheapest standard plan (which means paying on receipt of the bill) remains EDF Energy for an annual bill size of £1,202.
The cheapest fixed is OVO's New Energy Fixed - this plan is an online and fixed plan. Prices are fixed for one year from live date. Average bill size is £1,061.
The longest fixed is Scottish and Southern Energy's Price Fix 7 - prices are fixed for three years from going live. Annual bill size of £1,307.
These estimations are all based on a medium user consuming 3300kWh electricity and 16,500kWh gas with bill sizes averaged across all regions.
full article
Sunday 15 January 2012
There are more charging points than electric cars in UK as sales slump
Sales of electric cars have slumped so badly that there are now more charging points than vehicles on the road.
Just 2,149 electric cars have been sold since 2006, despite a government scheme last year offering customers up to £5,000 towards the cost of a vehicle.
The Department for Transport says that around 2,500 charging points have been installed, although their precise location is not known.
The government grant has boosted sales - from 138 in 2010 to 1,1082 last year - but only £3.9million of the £300million set aside has been paid out.
A spokesman for the DFT told The Sunday Times: 'It's fair to say that there hasn't been a huge take-up over the past year.'
The high cost of electric cars has put many off. The Nissan Leaf still costs £25,990 even after the £5,000 grant has been deducted.
Electric cars are also only suitable for short journeys, with a maximum range of around 100 miles on a full charge.
The government is spending £30million on publicly-funded charging points and those in private companies.
These range from points which take between six and eight hours, to those which provide an 80 per cent charge in half an hour.
Drivers can pay an annual fee to use the majority of the points, with authorities charging a membership fee for the year but no extra charge for electricity.
full article
Just 2,149 electric cars have been sold since 2006, despite a government scheme last year offering customers up to £5,000 towards the cost of a vehicle.
The Department for Transport says that around 2,500 charging points have been installed, although their precise location is not known.
The government grant has boosted sales - from 138 in 2010 to 1,1082 last year - but only £3.9million of the £300million set aside has been paid out.
A spokesman for the DFT told The Sunday Times: 'It's fair to say that there hasn't been a huge take-up over the past year.'
The high cost of electric cars has put many off. The Nissan Leaf still costs £25,990 even after the £5,000 grant has been deducted.
Electric cars are also only suitable for short journeys, with a maximum range of around 100 miles on a full charge.
The government is spending £30million on publicly-funded charging points and those in private companies.
These range from points which take between six and eight hours, to those which provide an 80 per cent charge in half an hour.
Drivers can pay an annual fee to use the majority of the points, with authorities charging a membership fee for the year but no extra charge for electricity.
full article
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