Fife Council facing £1m hit from Treasury's carbon scheme changes
Fife Council could be out of pocket to the tune of £1 million after a Treasury spending review shifted the goalposts on a scheme to promote energy efficiency.
- By Jonathan Watson
- Published in the Courier : 19.11.10
- Published online : 19.11.10 @ 08.58am
Following a review by the UK Government last month, revenues from the Carbon Reduction Commitment energy efficiency scheme, which were meant to be returned to local authorities, will now be used to support public finances.
Although the full implications of these changes are yet to be determined, if no payment is made to councils it is likely that Fife will have to buy carbon allowances based on its consumption. At a rate of £12 per tonne of carbon, it means that the council could pay as much as £1 million from the start of the 2012/13 financial year.
The scheme had been organised by the Department of Energy and Climate Change and is described as "central to the UK's strategy for improving energy efficiency and reducing carbon dioxide emissions," to meet targets set out in the Climate Change Act 2008.
Revisions made last month were implemented to assist businesses, however, and it would appear that the very changes which might help the private sector could adversely affect the public purse.
Councillor Ron Edwards vented his frustration at a meeting of the environment, enterprise and transportation committee meeting on Thursday.
He said, "I think it's a disgrace. We deliberated long and hard as part of the initial scheme on carbon commitment.
Now it's just a tax on the council and we will lose out. It's been deliberately manipulated and it puts the council in a difficult position."
Ultimately the council, like any other local authority, can do little to argue against any revisions, although committee chairman Tony Martin said that he has written to energy secretary Chris Huhne to state his disappointment.
Photo courtesy of Stewart Lloyd-Jones.
01.06pm - 19.11.2010 Chris - here, UK Report This
This is insanity. Carbon credits are a total nonsense based upon a myth.
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