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Cameron “cancels” RHI

Yesterday at Prime Ministers’ Questions, energy prices were the topic of robust clashes between the Prime Minister and Ed Milliband, with Cameron announcing the RHI’s ‘cancellation’.

Cameron had said: “Let me remind [Mr Milliband] of one of the first acts this Government took. We inherited an energy policy from him that would have put £179 on every single bill because of his Renewable Heat Initiative – and we cancelled it”.

The Department of Energy and Climate Change (DECC) has since confirmed the £430 million RHI is still going ahead.

The MicroPower Council (MPC) has also written to its members to clear up the confusion.

“It is important to reassure everyone that the Prime Minister was briefed incorrectly in giving this response, and we have confirmed this with the Government,” commented MPC chief executive David Sowden. 

Mr Sowden continued: “The Coalition did not “cancel” the RHI, rather it changed the policy’s funding base by changing it from the previous Government’s intent to introduce an additional levy on fossil fuels (and therefore something which would have added to fuel bills) to it being funded by general taxation.

“In support of this, the RHI has an agreed budget, only very recently reinforced by confirming an additional £430m of funding for the final year of this Comprehensive Spending Review period (2015/16).

“The issue has been highlighted to Special Advisers at No.10 and at DECC.”

The relevant extract can be found at http://www.parliamentlive.tv/Main/Player.aspx?meetingId=13831&player=smooth, at 12:08.

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