Tax cuts for community energy

Previously, the Government announced plans to slash the tax reliefs available to community energy projects by at least 30%. The plans to cut tax reliefs for community energy schemes to build new renewable power capacity such as solar and wind. Green campaigners have warned of the adverse affects this will have on the UK's renewable sector.

These changes were announced during the third reading of the finance bill last week and came about completely unexpectedly. No longer will investors in community energy projects be able to benefit from Enterprise Investment Schemes, or the Social Investment Tax Relief as well as other schemes. This in turn makes the investments less attractive due to the sudden decrease in monetary benefit.Earlier this year the Government announced subsidy cuts for domestic solar installations, also known as the feed in tariffs, by up to 87%.

The CEE carried out a survey during October with participation from 80 community energy groups - over 11,000 people were questioned. This survery revealed that 90% of the groups admitted their projects would struggle in the face of the proposed cuts. It is estimated that this change in the plans will lead to the loss of 27,000 jobs, not including the 1,000 already predicted as other solar energy businesses are closing down.

Solar was close to the point where it would be classed as subsidy free, and currently only adds £6 a year to a consumer's bill. Greenpeace energy campaigner Barbara Stoll accused the Government of making a "political choice, not an economic necessity".

Companies currently producing solar energy have blamed the planned subsidy cuts as the reason for their closure . They have caused uncertainty, however it could end up being a short-term issue as future announcements concerning a 'reset' will help to restore investors faith in renewable power.

The changes will come into force from 30 November this year. Financial secretary to the Treasury Dave Gauke has claimed that it will avoid the 'misuse' of the tax break by venture capital schemes. It was announced as part of the summer budget as the Government claimed to monitor the use of venture capital schemes by community energy to ensure that the schemes have not been abused, and ensuring they provide value for the tax payer.

As the energy sector continues to be brought into the limelight it serves as a reminder that it is just as important as ever to keep on top of your energy spend, and make sure your home and your business is continuing to be as energy efficient as possible. You'll thank yourself when the next bill arrives on your doorstep.

Always compare energy with an impartial expert, such as the Energy Advice Line, to make sure that the advice you are given is truly unbiased and completely reliable. Find out more at energyadviceline.org.uk.

Energy demands pose a problem for Britain

Energy demands have been steadily rising in Britain - but do we face a problem in coping with these amounts required?

The new Hinkley Point C will have a capacity of 3.2 billion watts, providing 7% of the nation's electricity once it is completed. This plan is considered by many industry experts as a crucial aid in reducing carbon emissions - in turn helping us to achieve our climate change commitments.

While most of the energy required will be produced by renewable technologies, Hinkley will be there to generate the remaining power. In the future coal and gas will not be viable methods for this back up energy due to the emissions involved - that leaves us with nuclear to pick up the empty space in the market.

Delays to the construction of Hinkley have forced the industry to ask itself, where else can we get the power from? Until we have a method of storing energy generated from renewable sources at an industrial level, we will always require an alternate method. This research is currently underway, but could take decades to complete.

One alternative is to continue with our use of fossil fuels, but being smarter in the way we use the residual carbon dioxide - it can be liquified and pumped back into the ground, also known as carbon capture and storage. Many geologists and energy experts believe that the empty oil fields in the North Sea will be the perfect location for storing this recycled substance.

Hinkley Point C, owned by EDF, was given the go ahead earlier this summer but has since had it's confirmation delayed by the government and the expected cost of the project is predicted to add an additional £37 million on to consumer's bills.

Our advice for consumers is to make sure you're aware of the changes happening in the industry - and we're happy to keep you up to date. If you have any questions about your supply then don't hesitate to get in touch - find our contact details at energyadviceline.org.uk

Household prices to increase

The Energy Advice Line has urged energy users to regularly switch suppliers following a new report predicting households will be paying £100 per year more for their energy within five years.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said the report showed the importance of keeping on top of rising prices by switching.

Independent energy consultancy Cornwall Energy predicts that household bills will have to rise to fund government policies designed to keep the lights on a support green energy.

"Policies designed to play a key role in fighting climate change don't come cheap and they will be a bigger fact of life in years to come," Mr Morgan said.

"But this doesn't mean there's nothing consumers can do to protect themselves from these extra costs - it's just a question of being a savvy shopper.

"This means not accepting the first deal that comes your way and seeking out the best bargains - the same approach you would take for any significany purchase.

"And with the costs of energy subsidies predicted to rise substantially, there's even more at stake than there was before."

The Cornwall Energy report said the subsidies paid by consumers to help suppliers cover the cost of various green energy policies would have risen by 124% by 2020 - 2021.

Analysts said that while the future cost of the actual energy remained uncertain, the costs of green energy policies were only heading in one direction: up.

The government claims it has taken various steps to reduce the burden on customer bills in the past 12 months, largely on the back of lower wholesale energy prices, but suppliers have been harshly crticised by consumer groups for not offering more generous cuts.

"Consumers really have to vore with their feet," Mr Morgan said. "There's nothing they can do about the subsidies that add extra costs to their bills, but consumers can switch to lower cost competitors and make significany savings in the process.

"Many energy users feel there is nothing they can do about these extra costs but, indirectly, there certainly is - by moving to suppliers where tariffs are lower.

"That's why it makes sound financial sense to use our free service - it's independent, impartial and quick. With a few strokes of a computer key consumers can see how much they save - and then we do all the legwork to arrange the switch."

The Energy Advice line Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumers when their fixed-term energy contracts are about to end.

For further information visit energyadviceline.org.uk