UK Chancellor George Osborne’s budget move to cut back on green tax breaks has cost one renewable firm £18million over the next two years, it was claimed today.
Mr Osborne announced that the Government is to scrap the Climate Change Levy (CC) exemption for renewable generators with immediate effect. The CCL has been a key part of the renewable support regime in the UK since 2001 and the industry understood that the previously announced phase-out would not happen until 2020.
Eric Machiels, chief executive of Infinis Energy, hit back at the decision, which he said will hit the industry hard and cost Infinis millions.
He added: “Based on our initial assessment of this measure, Infinis expects a reduction in EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately £7million in the year ending 31 March 2016 and approximately £10-11million in the year ending 31 March 2017.
“The announcement of the government’s intention to discontinue the CCL at this time was quite without warning. We are disappointed by the several recent changes to the regulatory framework which will disincentivise long-term investment in the build-out of new energy infrastructure in the UK. Infinis generates low cost, reliable, renewable energy and we now look to the government for regulatory stability.”
Machiels’ statement follows criticism from other industry leaders. RenewableUK’s Director of Policy, Dr Gordon Edge previously said the CCL revision was a “punitive measure”.
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