Low levy on renewable energy next year
From January, renewable energy will be costing UK consumers just 0.7% on their electricity bills. The levy on electricity sales in England and Wales to pay for the costs of the Non-Fossil Fuel Obligation (NFFO) will be reduced from its present 0.9% to reflect the expiry of the first premium priced power purchase contracts for renewables. NFFO-1 and NFFO-2 contracts come to an end on December 31. The levy is at its lowest level since it was introduced -- primarily as a means of paying for nuclear costs to pave the way for privatisation of the nuclear industry. In 1997/98, the levy raised £279 million. Some 51% went to nuclear with the rest going to renewables. This year, however, levy funds go solely to renewables after NFFO support for nuclear ceased in March.
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