Regulatory Timeline: Environment and Renewables

“The environmental outlook for the remainder of 2015 is focused on a much anticipated European reshuffle of waste policies. The previous Government’s much heralded Red Tape Review appears to be bearing fruit with the simplification of UK producer responsibility law; what remains to be seen is how the new Government will take forward its business energy efficiency tax review.

On the renewables front, the headlines for late 2015 and early 2016 will be the significant changes to the subsidy regimes, many of which are still subject to consultation.”

1 October 2015 – Changes to Feed-in Tariff accreditation

Effective from 1 October 2015 the ability to pre-accredit under the Feed-in Tarrif (“FIT”) scheme has been removed, as has the ability to receive a tariff guarantee through pre-registration.
Subject to the outcome of the FIT Review (see below), if generation tariffs for new applicants remain avaialble under the FIT scheme, the Government will consider reintroducing pre-accreditation for all groups or on a more limited basis.

1 October 2015 – Renewable Heat Incentive

Non-Domestic Renewable Heat Incentive (“RHI”) tariff degressions for certain technologies apply from 1 October 2015. New obligations to report on land-use and biomass sustainability criteria are in force with effect from 5 October 2015.

23 October 2015 – Consultation on the Feed-in Tariff Scheme

Responses to DECC’s consultation on a review of the FIT Scheme are due by 23 October 2015. The Government proposes to end generation tariffs for new applicants as soon as legislatively possible (expected to be January 2016) if cost control measures are not implemented or effective, with the export tariff kept as a route to market for the renewable electricity generated.

30 October 2015 – CRC Energy Efficiency Scheme

The deadline for surrender of allowances for compliance year 1 is 30 October 2015. The annual report for the initial phase is due to be published at the end of 2015.

9 November 2015 – Consultation on business energy efficiency taxes closes

The Government has launched a consultation on its proposed reform of business energy efficiency taxes and associated regulations; the wider objective being to review how tax schemes crossover with energy efficiency policies, with the aim of simplifying and improving the currenct structure. The review will consider the Climate Change Levy ,Carbon Reduction Commitment , Climate Change Agreements, the mandatory reporting of greenhouse gas emissions and the Energy Saving Opportunity Scheme (“ESOS”) amongst others.

Autumn 2015 – Contracts for Difference Auction

DECC has confirmed that there will be no Contracts for Difference (“CfD”) round this October. The Government will set out its plans in respect of the next CfD allocation round during autumn 2015.

5 December 2015 – Energy Savings Opportunity Scheme

Undertakings to which ESOS applies must have notified the Environment Agency that they have complied with the first compliance period of ESOS by 5 December 2015. The second ESOS compliance phase begins on 6 December 2015.

8 December 2015 – Capacity Market

The “T-4” auction (for the delivery year commencing on 1 October 2019) will commence on 8 December 2015.

31 December 2015 – Waste Framework Directive/circular economy package

The European Commission intends to withdraw its current proposals for a Revised Waste Framework Directive and replace it with ambitious new proposals to promote the circular economy. The circular economy package will amend European directives for packaging waste, Waste Electrical ad Electronic Equipment (“WEEE”), batteries, end-of-life vehicles , waste and landfill.

31 December 2015 – Renewable Transport Fuel Obligation

The Government is expected by the end of 2015 to introduce legislation that increases support for certain renewable gaseous fuels and clarifies the regulator’s powers.

31 December 2015 – Heat Network (Metering and Billing) Regulations 2014

Entities that supply and charge final customers for heating or cooling under a district heat network or similar must notify the regulator of all regulated networks by 31 December 2015, to avoid enforcement for non-compliance.

Heat networks in buildings with more than one final customer must carry out viability assessments for individual heat meters and resulting installations must be completed by 31 December 2016.

Early 2016 – Waste Batteries and Accumulators Regulations 2009 and Packaging Waste Regulations 2007

Regulations are expected to come into force to simplify compliance with UK waste batteries and packaging regulations.

1 January 2016 – Waste Electrical and Electronic Equipment Regulations 2013 (WEEE Regulations)

WEEE Regulations relating to reporting and issue of evidence notes by operators of approved authorised treatment facilities or approved exporters of WEEE come into force.

January 2016 – Capacity Market

The first ever Transitional Arrangement Auction will take place in January 2016. This is designed to facilitate the participation of Demand Side Response in the Capacity Market.

1 April 2016 – Landfill Tax increases

The lower rate of landfill tax will increase to £2.65/tonne and the standard rate will increase to £84.40/tonne with effect from 1 April 2016.

April 2016 – Renewable Heat Incentive

The Government is proposing tariff guarantees to apply from April 2016, making projects with long lead-in times more financeable.