AIC: renewable energy subsidies u-turn will damage investor confidence
Policy reversal undermines long term investment confidence.
The Association of Investment Companies (AIC) has criticised the government’s decision to align inflation indexation for the Renewable Obligation (RO) scheme, a type of clean energy subsidy, with CPI instead of RPI. This decision was published today in ‘Renewables Obligation (RO) scheme indexation changes: government response.’
Richard Stone, Chief Executive of the Association of Investment Companies, (AIC) said: “This decision drives a coach and horses through the government’s commitment to provide a safe and predictable investment environment for renewables. Changing the terms of the scheme damages investor confidence in the British government as a business partner. It undermines the government’s ambitions to attract investment to make Britain a clean energy superpower. Over the long term, rather than reduce costs, households will face higher charges as investors lose faith and the cost of capital to fund future projects increases.”
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Notes to editors
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