Chancellor George Osborne delivered his Autumn Statement yesterday (25 November). In the context of widespread cuts and efficiency savings, the Chancellor managed to find room for a welcome exemption from the costs of environmental policies for Energy Intensive Industries and increased funding for the Renewable Heat Incentive.

Below are the energy policies from the Review:

  • Reducing levies will take an average of £30 off projected household energy bills from 2017
  • £250 million will be invested in a nuclear research and development programme
  • The current Energy Company Obligation (ECO) scheme will be replaced from April 2017 with a new cheaper domestic energy efficiency supplier obligation which will run for 5 years. The new scheme will upgrade the energy efficiency of over 200,000 homes per year
  • The Government will shortly publish its responses to consultations on changes to the Renewables Obligation and Feed in Tariffs schemes
  • The government will provide an exemption for Energy Intensive Industries, including the steel industry, from the policy costs of the Renewables Obligation and Feed-in Tariffs
  • The government will increase funding for the Renewable Heat Incentive to £1.15 billion by 2020-21, while reforming the scheme to deliver better value for money
  • The government will commit up to 10% of shale gas tax revenues to a Shale Wealth Fund, which could deliver up to £1 billion of investment in local communities hosting shale gas developments
  • The sale of the Green Investment Bank is expected to conclude 2016-17
  • Over £350 million funding for public forests, National Parks and Areas of Outstanding Natural Beauty will be protected over the Spending Review period
  • The government will consult on legislation to ensure the reduced rate of VAT on energy saving materials is maintained in line with EU law

More detail can be found here.