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Challenge to renewables obligation dismissed

03/11/10

Lord Justice Moses, sitting in the Administrative Court, yesterday dismissed an application by Tate & Lyle, the sugar manufacturer, to challenge the treatment of 'co-firing with combined heat and power' (CoCHP) in the Renewables Obligation Order. The Government had initially made a calculation error in determining CoCHP's allocation of Renewables Obligation Certificates. In correcting the error in an 'early review', the Government had been entitled to re-assess using up to date pricing data, even though this was to the substantial disadvantage of CoCHP. The court held that the need not to overcompensate CoCHP contrary to state aid rules was as much a cardinal principle of administrative law as was the principle of consistency.

The judgment is here.

Martin Chamberlain appeared for the Secretary of State for Energy and Climate Change.