Delays and political interference in the setting of subsidies for wind farms may deter investment in the UK, energy companies have warned.
Ministers had been due to announce revised subsidy levels for renewable energy technologies yesterday – a decision originally due in the spring but delayed amid political infighting over the scale of cuts for onshore wind farms.
However The Daily Telegraph revealed yesterday that the decision had been delayed again, with Chancellor George Osborne demanding cuts of 25pc, to be phased in over several years, but Deputy Prime Minister Nick Clegg thought to insist the cut be limited to the 10pc recommended by the government’s review.
Keith Anderson, ScottishPower’s chief corporate officer, said the company was “worried” by the delay and warned: “One of the key advantages of the UK as a place to invest is the predictable nature and stability of its regulatory regime. Sticking to the evidence and the timetable is key to investor confidence.”
He had previously warned that, if political intervention were to override evidence-based outcomes, the company might have to start considering “political risk” when deciding whether to invest billions of pounds in the UK.