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It is UK government policy that all new build homes must be
zero-carbon by 2016. A central part of meeting this target will be
"energy service companies" which provide power for entire sites
using fuel-efficient energy sources.
However, the European Court of Justice has recently decided that
such schemes may be unlawful because, in some situations, it
provides monopolies for such providers.
This decision has thrown doubt on whether the government's
zero-carbon target can be hit. Almost every housing scheme of 200+
units over the last twelve months has included proposals for
on-site power generation involving an energy service company.
implications
What the industry needs now is urgent clarification from the
regulator on the impact this ruling will have on companies. The
Business Enterprise and Regulatory Reform department and the energy
regulator Ofgem have recently completed a consultation on the
possibility of easing restrictions on de-centralised energy
systems, to encourage development of low-carbon electricity. This
decision by European Court may prevent any widening of exemptions
and require existing policy to be re-considered.
need advice?
Contact Robert Wassall, Head of the Social Housing group, on T:
023 9253 0373 or E: robert.wassall@bllaw.co.uk.
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