Carmichael calls on government to rectify unfair feed-in-tariff rates

3.23.00pm GMT Thu 25th Feb 2010

Orkney and Shetland MP Alistair Carmichael today questioned government ministers on their recently announced ‘unfair’ feed-in-tariff payment rates which will see those who installed renewable energy technology first paid a lower rate of return than those installing equivalent technology in the future.

Speaking in the House of Commons Chamber during Department for Energy and Climate Change (DECC) questions, Mr Carmichael asked;

“The recently announced feed-in tariff creates a two-tier structure for small generators that feed into the grid, leaving those who were prepared to take the initiative in the early stages, at their own financial risk, much worse off. How do the Government justify that unfairness?”

Replying, DECC Minister of State Joan Ruddock MP said;

“I have sympathy with the point that the hon. Gentleman has raised. However, he needs to bear in mind that all the schemes impact on everyone, and we all have to make a contribution if the issue is to be addressed. The whole point of setting the feed-in tariff now is to enable the generation of more renewable energy, and that is why it requires the best possible incentive. Those who have already taken the initiative on their own account will not be producing more generation, and the Government’s aim has to be to get more in place and to create the incentive to make that happen. If we were to equalise the payment, that would not create more generation or more CO2 savings.”

Commenting after his exchange in the House of Commons;

“The Ministers sympathy is not worth a great deal to people who rightly feel short-changed by government policy. If the government is serious about wanting people to develop small scale renewable energy projects then they will have to treat everyone fairly instead of punishing those who demonstrate initiative and commitment.”

Under the government’s recently announced Clean Energy Cashback scheme new feed-in-tariff payment rates of up to 41.3p/kW will only apply to new generators who installed their technology after 15th July 2009. Those who installed their renewable technology before this date will only receive 9p/kW.