The High Court challenge in December was made on the basis that the cuts, which were brought into force before the end of the consultation, were illegal and had led to chaos and uncertainty in the industry, causing many jobs which were either unfinished or planned, to be cancelled.
The Court ruled that the Government had breached rules governing consultation exercises by announcing that the feed-in tariff incentives would be effectively halved before the end of the consultation period. Mr Justice Mitting, the judge presiding over the case, commented that the consultation was “legally flawed” and can therefore be subjected to a judicial review, adding that the ministers were “proposing to make an unlawful decision”.
The ruling effectively paves the way for a judicial review that could force the Government to re-launch the consultation, significantly delaying when the proposed cuts will come into effect. However, at present the effects of this ruling are unknown.
At the time Tony O’Connor, Managing Director of BritishEco, said: “I am hopeful that the ruling will prevent the Government from making decisions in this manner in the future and that they will seek to work together with companies to create a sustainable future for solar PV”.
However, yesterday the Government announced it was set to appeal against the ruling, saying that the Department of Energy and Climate Change (DECC) would file an appeal today – the last day for such action – despite Mitting’s warning that any appeal would have limited chances of success.
Climate Minister, Greg Barker, was quoted by The Guardian as saying: “We disagree with the Court’s decision. We will be seeking an appeal and hope to secure a hearing as soon as possible. Regardless of today’s outcome, the current high tariffs for solar PV are not sustainable and changes need to be made in order to protect the budget which is funded by consumers through their energy bills.”
He said on Twitter that he recognised that the court case “prolongs uncertainty” but added “that many installers are telling us @ 21p solar PV still makes sense for right home” and that “the budget means 4 every 1 new taker @43p, 2 homes won't get it at 21p”.
Friends of the Earth, meanwhile, believes an appeal “would be a waste of taxpayers' money” and is urging Ministers to focus instead on putting the solar industry back on a stable footing.
“Trying to appeal the High Court's ruling is an expensive waste of taxpayers' money. The Government must expand the scheme - with all the tax revenue the scheme generates, this can be done at no extra cost to bill payers,” commented Friends of the Earth's Head of Campaigns, Andrew Pendleton. “Ministers should end business uncertainty and protect jobs with a clear plan to reduce payments from February - in line with falling installation costs.”
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