New report shows British businesses give show of support for planned energy changes
Our new Energy Matters has revealed that many British businesses believe upcoming changes to energy legislation will have a positive impact, potentially giving them further encouragement to stay in Great Britain.
Energy Matters aims to demystify new and proposed pieces of legislation to explain their impact on the bottom line of UK businesses. For this issue, we are focusing on the upcoming Government consultation about electricity intensive industries and how they will be exempted from certain renewable energy costs. This represents a move away from the current system of compensation.
As part of its wider Comprehensive Spending Review in November 2015, the Government announced its intention to replace the existing compensation arrangements for RO/FiT with an exemption scheme. A consultation on this proposal is expected in the coming month.
There seemed to be clear support for the move towards exemption and backdating compensation. Over half of those we surveyed (51%), regardless of whether or not they were eligible, believe that backdating compensation will help businesses stay competitive.
There was also considerable interest in the upcoming consultation, with half of all respondents saying that they would like to take part, and should have their say given the potential implication of the changes upon their businesses.
David Reed, Head of npower Business Solutions said:
"The proposed exemption would represent good news for the businesses and sectors which are eligible. Making regulatory processes more transparent and more straightforward would reduce the burden on businesses and would provide them with greater clarity about their finances.
"A majority of retailers and manufacturers we spoke to were not aware of the upcoming consultation. That’s why we’re working the Government to host a round table event, to explain these upcoming changes to businesses and discuss the proposed benefits.
"In addition, much of the detail is still to be confirmed and so we hope that the policy will be executed in a proportionate way, with the Government being mindful of the potential distributive impact. We would encourage all businesses to take part in the consultation and to make sure they receive all the support that they are eligible for."