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Government defeated on FIT consultation

30 January 2012

The government attempts to make substantial reductions to Feed-In Tariffs (“FITs”) suffered a setback last week, when the Court of Appeal upheld a decision by the High Court that its consultation process was unlawful.

As we highlighted back in November, the government had launched a consultation on proposed reductions in the FIT rates. The changes were due to affect any installations approved on or after 12 December 2011, although the consultation period ran until 23 December. Before Christmas the High Court heard a challenge brought by Friends of the Earth, Homesun Holdings Ltd and Solar Century Holdings Ltd, finding against the Government.

The Government appeal has been dismissed by the Court of Appeal but the Government is considering a further appeal to the Supreme Court. This will cause further delays and uncertainty, particularly for solar panel firms and customers who have had installations approved after 12 December, as they still do not know what rate they will be receiving from April onwards.

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