Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

Judicial review for 'hasty' Climate Change Levy removal

Drax Group and Infinis Energy have initiated proceedings for a judicial review of the notice period given by the Treasury when removing the exemption from the Climate Change Levy (CCL) for electricity generated from renewable sources.

In July, chancellor George Osborne announced in his summer Budget that the CCL exemption for renewably sourced electricity would go, meaning electricity suppliers are able to claim only on renewable electricity generated before 1 August.

Drax has complained that the exemption was removed without an appropriate notice period, in this case 24 days after the announcement.

The companies have asked the court to consider “a reasonable and proportionate” notice period for withdrawal of the renewable support.

The Drax power plant (pictured) is based in North Yorkshire and co-fires biomass and coal.

The CCL was implemented in 2001 as a tax on UK business use to encourage energy efficiency, reduce carbon emissions and promote energy from renewable sources. 

Customers were able to claim an exemption from the CCL if they bought electricity from certain qualifying renewable energy sources.

The Anaerobic Digestion and Bioresources Association has also criticised the policy changes, saying the removal of the CCL would cost the anaerobic digestion sector £11m.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.