High Court rules ‘panic’ cuts to feed-in tariffs are potentially illegal
Environmental campaigners are this week feeling buoyant following the High Court ruling that the Energy Secretary’s drastic proposal of a 50% cut to solar PV subsidies back in October is ‘legally flawed.’
Whilst a review of the Feed-in Tariffs was always due in 2012; due to the overwhelming uptake in solar PV, the Department of Energy and Climate Change (DECC) had proposed that current Feed-in Tariffs were not, in their view, sustainable for solar PV and that they would be cut radically.
Dramatically in October, the DECC brought forward the review and announced that any project registered after 12 December 2011 would be downgraded to the lower rate from April 1 2012, after initially receiving the current higher tariff. This proposal, designed to save the Coalition £700m a year by 2014-15, sent shock waves through the renewable energy sector; who feared that such a knee-jerk reaction would destabilize parts of the industry, not only in terms of investor confidence but also the supply chain and employment levels.
Yesterday, Friends of the Earth and two leading solar PV companies, HomeSun and Solarcentury challenged this decision at the High Court and were relieved to hear judge Mr Justice Mitting’s ruling that DECC’s actions were potentially illegal, and can now be subject to a judicial review.
Friends of the Earth's executive director, Andy Atkins, said: "We hope this ruling will prevent Ministers rushing through damaging changes to clean energy subsidies - giving solar firms a much-needed confidence boost.”
"Ministers must now come up with a sensible plan that protects the UK's solar industry and allows cash-strapped homes and businesses to free themselves from expensive fossil fuels by plugging into clean energy." Andrew Watkin, head of Energy and Marine Team at Carter Jonas commented.
“We are delighted with the news that DECC has been challenged over its impulsive and ill considered approach to dealing with the solar industry. Whilst it is no doubt humbling for them to be on the receiving end for once, especially bearing in mind the FiT cut earlier in the year to curtail solar park developments, let’s hope that they come forward with a rational strategy by which we can all move forward with confidence to help try and achieve the targets set by 2020.”
Posted by: Carter Jonas LLP
