The U.K. Wednesday lost a bid to overturn a court ruling that its planned cuts to solar power subsidies were illegal, a decision that could allow thousands of consumers to claim the higher payouts introduced by the previous Labour government.
The U.K. Wednesday lost a bid to overturn a court ruling that its
planned cuts to solar power subsidies were illegal, a decision that could allow
thousands of consumers to claim the higher payouts introduced by the previous
Labour government.
The Court of Appeal unanimously rejected Energy Secretary Chris Huhne's
argument that he had sufficient authority to back-date the lower subsidy to
include solar projects completed within days of a consultation period on the
matter coming to an end.
Huhne said the government plans to appeal the decision in the Supreme Court.
Plans to cut the "feed-in tariff" solar subsidy were announced in
October, with government ministers arguing the proliferation of cheaper solar
panels should translate to a reduced payout to those consumers and businesses
prepared to install them.
Huhne wants to reduce payments made to households and businesses who installed
their solar panels after Dec. 12. But a legal challenge from two solar
manufacturers, SolarCentury and HomeSun, and environmental group Friends of the
Earth led to a high court judge ruling that the government had mishandled the
implementation of the cuts.
Opponents of the cuts say they could put thousands of jobs in the solar
industry at risk, but the government argues it can't afford to pay the higher
rate indefinitely and that reducing the tariff now is the only way to continue
the subsidy.
The case is the latest sign of
Europe
's
once booming renewables sector being rolled back as sovereign debt worries
crimp government spending and cheaper Far Eastern manufacturers put price
pressure on the companies who make solar panels and wind turbines.
While
U.K.
solar
manufacturers account for a small proportion of the European industry, larger
peers have also suffered as a result of subsidy cuts and increased Chinese
competition. Germany's Q-Cells SE (QCE.XE) and SolarWorld AG (SWV.XE) have posted
loses in recent months, while Norway's Norwegian solar power equipment maker
Renewable Energy Corp. ASA (REC.OS) has temporarily shuttered 50% to 60% of its
capacity at two Norwegian plants.
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