From October, support for renewable energy will add a mere 0.3% to electricity bills in England and Wales. That is when a reduction in the Fossil Fuel Levy from its level of 0.7% comes into effect. The levy pays for the increased cost to electricity suppliers of the Non Fossil Fuel Obligation, under which a premium price is paid for electricity from renewables. The reduction reflects an expected slow-down in the rate of commissioning new NFFO contracted schemes, and is a further indication-if any was needed-that the government will be hard pressed to achieve its targets for electricity from renewable sources.
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