黑洞社区

Firms from across the renewable energy industry are queuing up to take legal action against the government over its bonfire of green policies announced in recent weeks.

Renewable energy suppliers Drax and Infinis have become the latest to announce they are taking legal action against the government, after launching a judicial review challenge to the notice period given by the Treasury on its decision to make renewable energy generation subject to the Climate Change Levy (CCL).

In a statement, both firms said: 鈥淭he basis of this review is that the exemption was removed without the application of an appropriate notice period, as the notice given was only 24 days.

鈥淭he companies ask the court to consider a reasonable and proportionate notice period for withdrawal of such renewable support.鈥�

However, the Treasury has hit back against the companies and insists it will 鈥渞obustly defend鈥� the challenge.

A Treasury spokesperson said: 鈥淭he exemption only provided indirect support to renewable generators, and involved UK taxpayers subsidising foreign renewable projects.

鈥淲e are confident in our reforms, and will robustly defend against the challenge.鈥�

In its half-year results for the six months to 30 June 2015, Drax estimated the change to the exemption 鈥渨ill reduce group EBITDA [earnings before interest, tax depreciation and amortisation] by 拢30m in the second half of 2015 and 拢60m in 2016.鈥�

The news comes after 黑洞社区 revealed last week that environmental pressure group Friends of the Earth is considering legal options over the Department for Energy and Climate Change鈥檚 (DECC) consultation on scrapping feed-in tariffs, which subsidise domestic solar and wind turbine schemes.

Meanwhile, solar firm Solarcentury has also announced it is taking legal action against the government, appealing a High Court ruling that refused an application for a judicial review over a separate DECC consultation on removing support for solar farms over 5MW.

The firm鈥檚 chief executive Frans van den Heuvel said of the High Court ruling: 鈥淭his is still of doubtful legality and the issue of whether the (Levy Control Framework) trumps all other policy will be tested again in the Court of Appeal next year.鈥�

He added that Solarcentury is also considering initiating a judicial review against the current consultation on ending support for solar projects under 5MW.

Trade association RenewableUK refused to rule out legal action against DECC over its decision to end support for onshore wind projects from April 2016, but a spokesperson said the option is a 鈥渓ast resort鈥�.