10th Feb 2016 15:24
LONDON (Alliance News) - The UK High Court has ruled against Drax Group PLC and Infinis Energy PLC, after the companies called for a judicial review of the UK government's decision to remove climate change levy exemptions.
The companies had claimed that the removal of the climate change levy exemptions was made without a "reasonable and proportionate" notice period. In a statement on Wednesday, Drax said it will now consider the judgement in detail.
"Since their introduction in 2001, CCL exemptions such as levy exemption certificates have played a critical role supporting investment in a wide range of renewable technologies," Dorothy Thompson, chief executive of Drax, said.
"In recognising our right to bring this case, the Court acknowledged that the removal of levy exemption certificates was sudden and unheralded. However, it concluded that the government had not provided any specific and clear assurances on the continuation of exemptions and accordingly ruled in their favour," Thompson added.
According to Drax, the climate change levy is a tax on UK business energy use intended to encourage energy efficiency, reduce carbon emissions and promote energy from renewable sources. The tax was implemented in 2001 and is collected from businesses by energy suppliers through energy bills to their business customers.
Customers were able to claim an exemption from the levy if they bought electricity from qualifying renewable energy sources.
The removal of the exemption came into effect in August 2015.
Shares in Drax were down 1.5% at 225.20 pence on Wednesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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