Feed in Tariffs – the state of play
After losing their high court battle on feed in tariffs and having their actions deemed unlawful by a high court judge, the government tried to appeal the decision. Three appeal court judges have ruled that they do not have grounds for an appeal and threw out the case today. Despite being refused permission to appeal to the Supreme Court, Energy Secretary Chris Huhne has confirmed the government will seek permission anyway. Although legally the tariff should now be back to its original rate pre 12th Dec 2011 the Department of Energy and Climate Change (DECC) refuse to put the tariff back up until they know whether or not the Supreme Court will listen to the government’s appeal.and that’s not very likely.
It is understood that because the Court of Appeal this morning refused leave to appeal to the Supreme Court, the three appeal judges are indicating the likelihood of permission being granted is extremely remote as they feel there is no ambiguity over the points of law.
Fact.. according to the DECC the current tariff remains at 21p until the Supreme Court decide whether or not to grant leave of appeal to the government.
Fact..the government lost the initial high court case and their actions were ruled unlawful.
Fact..the government asked for an appeal of the high court decision and three appeal court judges said no to this as they felt the government did not have a legal argument to field.
Fact..the government asked the appeal court judges if they could go to the Supreme Court for an appeal. The appeal court refused them permission to go to the Supreme Court.
Fact..the government are now asking the Supreme Court directly if they will listen to their appeal, the Supreme Court will now decide whether to listen to the appeal (it could take 28 days to decide) or throw it out just as the appeal court judges did.
Conclusion
The government seem to be fighting a losing battle and have already been defeated by the High Court and the Appeal Court. Going to the Supreme Court seems to be a delaying tactic to stop consumers taking advantage of the 43.3p tariff which should now be reinstated. They have already stated that they will reintroduce the 43.3p tariff up until the 3rd of March if they lose the court action?..so 28 days from now is the 22nd of Feb and if it is announced that the Supreme Court will not hear the appeal (most likely) then this would give consumers 10 days to have their system installed which would result in panic and people being disappointed.
Even at the 21p tariff the average annual return of investment would be 8% to 10% which is still substantial and will still outperform the current financial markets.
Our advice..be brave, install now! If the unbelievable happens and it stays at 21p you still have a very healthy return on your money. If it reverts back to the original tariff of 43.3p (most likely) then your annual return on investment could hit 15% to 17%!!!
