?Government?proposals for?the design of the tariffs
The government has not yet published any details of its plans for the Renewable Heat Incentive. It has, however, published one consultancy study "Supply curve for Renewable Heat", which will be used to set the tariff levels for the RHI.
It also issued on 15th July 2009 its document describing the proposed design of the Feed-in Tariffs (FITs - the equivalent measure for electricity). This is relevant because several aspects of the FITs are expected to be applied to the RHI too. The details can be seen on the government website here. We have a copy of the document here?and the relevant sections are on?pages 61 to 93.
Our reponse to the FITs consultation
We believe the government has got it more right than wrong.
However there are several issues that we believe should be changed - and?the ones that could also affect the Renewable Heat Incentive?are:
-
Existing installations installed before July 2009 don't get the tariffs
-
The tariff levels have been set quite low (to give only 5-8% return)
-
Some types of renewables listed in the Energy Act have been omitted
-
It is not clear if the tariffs are index-linked
-
The tax implications have not been defined
... and there are lots of more detailed issues - see also here?and responses to the consultation submitted by our associated companies shown in summary below and in full here?and here.
|