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UK Government Bars New Green Subsidies

Energy Live News

Renewable energy project developers have been dealt a huge blow as the government said there will be no new subsidies until 2025.


The budget for support schemes, such as Contracts for Difference (CfDs), has so far been set through the Levy Control Framework (LCF) and since the Spring Budget announcement to end the LCF, the government has been developing its new Control for Low Carbon Levies.

It is designed to limit the green taxes or levies that are added to consumer energy bills.

A document published by the Treasury, alongside the Budget yesterday, suggests the government wants to keep energy costs “as low as possible” and therefore there will be no new low carbon electricity levies “until the burden of such costs is falling”.

It states: “Until the total burden of these costs is forecast to fall in real terms over a sustained period, the Control will not allow for new low carbon electricity levies to be introduced. Based on the current forecast, this will rule out new levy spend until 2025.”

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