Seven local authorities have so far sent emails to the government announcing the removal of restrictions on their sale of electricity from renewable sources.
This comes after energy and climate change secretary Chris Huhne wrote to all local authorities in England and Wales on August 9 (see MRW story) to let them know they were allowed to sell renewable electricity back to the national grid.
Previously local authorities were restricted from selling any excess renewable electricity into the grid, other than that generated through combined heat and power but Huhne lifted this ban which could mean up to an additional £100m a year in income for local authorities.
The news that seven local authorities have so far taken up this offer, was given by energy minister Charles Hendry as part of an answer to a question on the subject in parliament.
Hendry said: “Seven local authorities have sent emails to the address provided in the Secretary of State’s recent letter announcing the removal of restrictions on their sale of electricity from renewable sources.
“There will be no restriction on how local authorities may spend the resulting revenue, as long as it fits within their remit as authorities.”
The Local Government Association has welcomed the plans, saying that the new legislation could help keep council tax bills low as selling electricity will allow local authorities to generate money.