7th March 2017 | Posted by: Daniel Birkett | Industry News

The decision on the Energy Intensive Industries exemption from RO and FiT charges is still yet to be made.

A decision has not yet been made in regards to the proposed exemption for Energy Intensive Industries (EII) from RO and FiT charges.

Following a consultation last summer, the government announced plans to exempt EIIs from part of the costs for Renewables Obligation and Feed-in tariff charges. Instead, the additional costs would be passed on to non-exempt consumers.

The initial consultation stated that the government would look to implement the exemption by the 1st of April 2017. However, the decision remains outstanding and it has been confirmed that any exemption would require State Aid approval from the European Commission. In addition to European Commission involvement, any relevant legislation would need to be amended by parliament before it can come into effect.

As a result of this additional deliberation the government has confirmed that the exemption will not be put in place by the 1st of April 2017 as originally intended. Instead, the government funded compensation scheme for EIIs will continue until a decision has been reached. As yet, no indication has been provided by officials on when the exemption is likely to be introduced but have committed to keep the industry updated.

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