The Department for Business, Innovation and Skills (DBIS) launched the consultation on 1 April and it closes on 27 May. It outlines proposals for businesses from EIIs to be granted exemption from the Renewable Obligation (RO) and Feed-in Tariff (FiT) schemes, replacing the current compensation model. Backdated compensation is also one of the options explored in the open consultation.
When informed of the proposed changes, 51% of respondents said they thought backdated compensation would help businesses to stay competitive. If the move meets with approval, it will be implemented as early as April 2017.
David Reed, head of npower Business Solutions, said the 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,” he continued.
“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.”
