Wednesday, 8 February 2012

UK Feed in Tariffs... the truth will out!
by Martyn Judd

We wrote a couple of weeks back that the UK Court of Appeal had rejected the Government's bid to repeal the legal ruling that changes to the feed in tariffs were 'legally flawed'. We had all hoped that this would reinstate the 43p rate, but reality is often stranger than fiction!

In the event, the Government simply ignored the Courts and vowed to take the matter to the Supreme Court without leave to do so. This meant that the case was unlikely to be heard for at least 8-months and, in the meantime, the feed in tariff is 21p and NOT 43p, although many unscrupulous installers are saying that it is. In response, REAL (the renewable energy insurance organisation in the UK) issued a stark warning to members that they must not tell consumers that they will get the higher rate. Even British Gas issued a letter stating the same.

Two things may happen from here:
  1. the feed in tariff consultation paper, published tomorrow (9th January), may say that the 21p rate is what is required and, as a result, the DECC will undoubtedly follow the Supreme Court route;

  2. the consultation paper will question the 21p rate cut and the DECC will have to decide where to go from here.
If DECC takes the case all the way to the Supreme Court, then all installations will be subject to the lower feed in tariff and only if the Supreme Court upholds the illegality in 8 / 9 months from now, will the higher rate be back-dated for installations made up until 3rd March. If the DECC abandons the fight, however, then chances are the higher rate will apply immediately to all installations between 12th December 2011 and 3rd March 2012.

Until we know more, we strongly recommend that consumers report installers promoting the 43p tariff to the STA or REAL:



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