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Onshore windfarm subsidies to be cut in further shakeup of green levies Onshore windfarm subsidies to be cut in further shakeup of green levies
(34 minutes later)
The Treasury is to cut subsidies for onshore windfarms and solar panels again while increasing support for offshore wind turbines as part of a further shakeup of green levies to make them more "cost-effective". The Treasury is to cut subsidies for onshore windfarms and solar panels again while increasing support for offshore wind turbines as part of a further shakeup of green levies to make them more cost-effective.
Danny Alexander, chief secretary to the Treasury, will unveil the plans later on Wednesday after delivering a speech setting out plans for £375bn of infrastructure spending over the coming decades. Danny Alexander, chief secretary to the Treasury, will unveil the plans on Wednesday after delivering a speech setting out plans for £375bn of infrastructure spending over the coming decades.
He said taxpayer support for solar and onshore wind would be cut as developers were finding ways to install them more cheaply.He said taxpayer support for solar and onshore wind would be cut as developers were finding ways to install them more cheaply.
The changes relate to so-called "strike prices" for subsidies after 2015, which give energy companies a guaranteed price for electricity produced from renewable sources and nuclear power. Essentially, the taxpayer provides a top-up on the market price of power.The changes relate to so-called "strike prices" for subsidies after 2015, which give energy companies a guaranteed price for electricity produced from renewable sources and nuclear power. Essentially, the taxpayer provides a top-up on the market price of power.
David Cameron had come under pressure from backbench Tory MPs and some ministers over the impact of windfarms and solar parks on the countryside in their constituencies.David Cameron had come under pressure from backbench Tory MPs and some ministers over the impact of windfarms and solar parks on the countryside in their constituencies.
However, Alexander said the overall level of subsidies would remain the same and stressed his commitment to helping the UK meet its climate change targets.However, Alexander said the overall level of subsidies would remain the same and stressed his commitment to helping the UK meet its climate change targets.
He told BBC Radio 4's Today programme: "I believe passionately in meeting this country's obligations on tackling climate change and meeting environmental commitments, but we should be doing so in the most cost-effective way we can."He told BBC Radio 4's Today programme: "I believe passionately in meeting this country's obligations on tackling climate change and meeting environmental commitments, but we should be doing so in the most cost-effective way we can."
However, the plan was criticised by Labour for undermining certainty for investors in renewables so soon after previous cuts to financial support for onshore wind farms and solar panels.However, the plan was criticised by Labour for undermining certainty for investors in renewables so soon after previous cuts to financial support for onshore wind farms and solar panels.
Chris Leslie, shadow chief secretary to the Treasury, told BBC Radio 5 Live: "They're just chopping and changing all the time – very bad for stable, long-term investment."Chris Leslie, shadow chief secretary to the Treasury, told BBC Radio 5 Live: "They're just chopping and changing all the time – very bad for stable, long-term investment."
It comes after ministers negotiated cuts to the energy company obligation – a programme to help poor households reduce their energy usage – as part of a deal with the big six firms to bring down gas and electricity bills by £50.It comes after ministers negotiated cuts to the energy company obligation – a programme to help poor households reduce their energy usage – as part of a deal with the big six firms to bring down gas and electricity bills by £50.
Earlier this week, Tim Yeo, chairman of the Commons energy committee, warned the cuts could open the door to a further attack on green levies, which make up less than 10% of energy bills.Earlier this week, Tim Yeo, chairman of the Commons energy committee, warned the cuts could open the door to a further attack on green levies, which make up less than 10% of energy bills.
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