Removal of levy exemption seen as a threat by cogeneration industry

The UK Combined Heat and Power Association believes businesses will be forced to close after the UK government confirmed that the industry’s exemption will be removed from the Climate Change Levy.

"The decision will leave many businesses with no alternative but to switch off their plant when the change comes in to effect in 2013," the CHPA said. "130,000 manufacturing jobs today depend on CHP to provide reliable, low-carbon energy."

Platts reports that Wednesday's budget confirmed Chancellor of the Exchequer (finance minister) George Osborne's decision to remove CHP plants' eligibility for CCL Levy Exemption Certificates -- a tax incentive introduced in 2003.

The incentive "has helped build and sustain a CHP fleet which provides 7% of UK electricity, saves 13 million mt of CO2 a year and reduces gas imports by 5%," the CHPA said.

Meanwhile the budget announcement that "fossil fuels used to generate heat in good quality CHP plants will not be liable to the carbon price support rates" served only to remove the obstacle to CHP that was introduced with the Carbon Price Floor, the association said.

For more cogeneration news

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...