United Kingdom

United Kingdom

Low levy on renewable energy next year

From January, renewable energy will be costing UK consumers just 0.7% on their electricity bills. The levy on electricity sales in England and Wales to pay for the costs of the Non-Fossil Fuel Obligation (NFFO) will be reduced from its present 0.9% to reflect the expiry of the first premium priced power purchase contracts for renewables. NFFO-1 and NFFO-2 contracts come to an end on December 31. The levy is at its lowest level since it was introduced -- primarily as a means of paying for nuclear costs to pave the way for privatisation of the nuclear industry. In 1997/98, the levy raised £279 million. Some 51% went to nuclear with the rest going to renewables. This year, however, levy funds go solely to renewables after NFFO support for nuclear ceased in March.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in