Business energy: Govt appeals High Court decision

04/01/2012

The government has confirmed that it will appeal the High Court decision over their planned cuts to Feed-in Tariff subsidies.

Following the ruling that reductions in solar payments were legally flawed, the Department of Energy and Climate Change (DECC) will today file an appeal.

Energy minister Greg Barker took to Twitter to confirm the government's intentions, which, if successful, will prevent companies once again accessing higher levels of sustainable business energy subsidy.

The government has come under criticism from Friends of the Earth for their decision to challenging the ruling, which will have no chance of success, according to Mr Justice Mitting.

Friends of the Earth has stated that the government should be focusing on introducing a clear plan to reduce solar power payments in line with falling installation costs, rather than pursuing an expensive legal appeal that will use taxpayer money.

Moreover, the governments challenge to the ruling will prolong industry uncertainty and jeopardise jobs.

Head of campaigns at the green charity Andrew Pendleton stated: "The government's illegal cuts to solar tariff rates have near-crippled an industry and threatened thousands of jobs.

"Trying to appeal the High Court's ruling is an expensive waste of taxpayers' money - the court says the government has no realistic chance of winning, and it will prolong uncertainty among solar companies just when they need reassurance.

"Ministers should accept the High Court's decision and end business uncertainty and protect jobs with a clear plan to reduce payments from February, in line with falling installation costs."

Friends of the Earth is also calling on the government to expand the scheme overall, which can be done at no extra cost to bill payers because of the tax revenue generated by the scheme.

This must be done by reducing tariff rates in a planned way from February 2012 to protect jobs and to increase the overall budget for the Feed-in Tariff to allow more people - including poorer households and community groups - to benefit from solar power, according to the green campaigns charity.

Posted by Richard Smart