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Decision on Energy Intensive Industries (EII) Exemption for RO and FITs still outstanding

Posted by SSE Business Energy on 06/03/17 10:12
Last Summer Government consulted on implementing an exemption from part of the costs of the RO and FITs schemes for EIIs, with the consequence that the extra cost of these schemes would fall on non-exempt consumers. The consultation stated the Government’s intention for the exemption to come into effect from 1st April 2017. As of yet the Government response to their consultation setting out their final decision is still outstanding and the exemption will require State Aid approval from the European Commission and Parliamentary time to amend the relevant legislation before it can come into effect.

Government officials have recently confirmed that the exemption will therefore not be in place, as proposed, for 1st April 2017. They have further confirmed the existing Government funded compensation scheme for EIIs will remain in place until the exemption is introduced. Despite the delay Government officials have not provided any further indication of when the exemption may be introduced but have committed to keep industry informed.

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