The Fossil Fuel Levy, which pays for the government's programme of renewables support in England and Wales, is to be cut to just 2.2% of electricity bills in the next financial year from April 1, 1997. According to Electricity Regulator Stephen Littlechild, the new rate will be enough to cover commitments under the Non-Fossil Fuel Obligation (NFFO) and payments to the non-privatised rump of the nuclear industry. For the first time, most levy proceeds -- 58% -- will go to renewables instead of to nuclear. Last November Littlechild reduced the levy rate from 10% to its present 3.7% due to the privatisation of part of the nuclear industry. Until November the levy had stood at 10% or above since the NFFO programme was first introduced in 1990.
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