Rexel hopes eco barren Budget is part of wider framework for green growth

Leading renewables specialist, Rexel UK, has stated that it is imperative the Government rapidly follows through with its ‘long term framework’ for the nation’s energy policy, following the Summer Budget.

Of the very few environmental points noted in the Budget, Chancellor Osborne declared the abolition of the Climate Change Levy (CCL) – to be removed from 1 August with a transitional period for suppliers to claim CCL exemption on green electricity generated before that date. It was claimed that the exemption was ‘outdated’ and could be removed because the Government has a ‘long term framework for investment in renewable energy in place’.

In addition, the Chancellor announced he would continue to plough ahead with a planned £1.3m tax support and exemptions for the North Sea oil and gas industry. As suspected, he also confirmed that the new Government will no longer be progressing with previous plans to increase the proportion of revenue from environmental taxes during this Parliament.

Jerry Hamilton, Business Development Director of Renewables & Energy Solutions for Rexel Northern Europe, comments: “It is incredibly disappointing to see so little in the way of environmental policy in this year’s budget and, worse still, the removal of the CCL which will have a profound impact on the take up of energy-efficient measures by commercial users.

“We can only hope that this truly is part of a wider plan which the Government has claimed is a ‘long term framework’ for the UK energy infrastructure – and that this will be delivered quickly.”

He adds: “We must remember that, as a nation, we are at the risk of an impending energy crisis – with more power plants closing and replacements not happening quickly enough. Thus, we need rapid Government intervention in order for us to safeguard our energy future and move a low-carbon economy along.

“Crucially, the Government must drive forward solar and other renewable sources as an integral part of the future energy mix to ensure security of future supply. After all, our use of fossil fuels is finite whereas renewable energy provides a secure, cost-effective long term solution – and must be used more widely commercially and domestically”

He concludes: “Although the Budget has left a distinctive hole in terms of the lack of environmental focus, we hope that the Government will take rapid action to deliver a long term energy policy – this is imperative to ensure the UK stays on track to be a leader in the energy revolution rather than a follower.”

Rexel UK is a distributor of electrical installation supplies. It is part of the Rexel Group, a global distributor of products and services for the energy world, which addresses three main markets – industrial, commercial and residential.