I have received a number of communications from constituents who have contacted me about the proposed changes to Feed-in Tariffs (‘FITs’).
As constituents may be aware, my Government made a commitment to meet 15% of the UK's energy demands from renewable resources by 2020. The use of FITs to deliver this commitment have led to levels of deployment that have surpassed all expectations. As a result, the targets for deployment of FITs for wind, hydro and anaerobic digestion for the period 2020-2021 will have been exceeded by the end of 2015 and is also predicted to be delivered early for solar digestion.
With targets being hit five years early, it is clear that a market has been established and I am proud that this market is thriving in the Bexhill and Battle constituency. Therefore, and now that the market has been created, it is only right that Government reduces its involvement.
Whilst it is good news that renewable energy has been rolled out sooner than anticipated, the extra costs associated with providing FITs are ultimately paid for by all customers through their energy bills. The Government must ensure that these customer bills are kept to an affordable level. For this reason, the Government is consulting on proposals designed to relieve the pressure on energy customers from rising bills, improve value for money and keep the costs of renewable energy policies sustainable.
The consultation closes on 23 October 2015 and many constituents have confirmed that they have completed the exercise and sent me their responses. For constituents who have not yet completed the consultation exercise, it can be found on www.gov.uk by searching on the term ‘Feed-in Tariffs consultation’. The consultation proposes new tariff rates based on the latest information about how much these schemes really cost. The Government’s preliminary view is that, by capping spending on new FITs at £75-100 million by 2018-19, Government will be able to continue funding for a new generation of renewable energy projects. Existing facilities would not be affected by these changes.
A number of constituents have raised concerns as to the roll-out of the proposed changes to FITs. To ensure that these concerns, and the wider issues, are conveyed to the Department of Energy and Climate Change, I recently met with the Minister of State, Andrea Leadsom MP. The Minister confirmed that the consultation responses would be reviewed in full before decisions are taken. It was clear to me from this meeting, however, that the Government intends to reduce Government subsidies in renewable energy now that the market has been established and I support this approach.
The Minister assured me that the Department of Energy and Climate Change wishes to see the renewables sector continue to thrive and succeed, and made particular reference to solar to this end. Once the department has reviewed the findings from the consultation and reported, I will post an update on my website. Having taken the opportunity to have questioned the Minister on this matter on behalf of my constituents, I confirm that I support fully my Government’s position. I understand fully the concerns which certain businesses may hold and I wish to do whatever I can to support them outside the sphere of Government subsidies.