Nine years ago the Department of Enterprise, Trade and Investment was successful in obtaining UK Government agreement that the emerging gas industry in Northern Ireland should be exempt from a climate change levy imposed on large business energy customers
This exemption has led to local businesses saving an estimated £26 million. The current exemption is due to expire on 31st March 2011.
Phoenix Natural Gas have today confirmed that they have written to the Department of Enterprise, Trade and Investment to highlight why it is important, for both customers and for the continued expansion of the gas industry to new areas, that local Government lobbies hard to have the exemption extended.
If the climate change levy exemption was extended, as a minimum, by a proposed further 21 months to the end of 2012, Phoenix estimate that the savings for business customers could increase to a figure of around £36 million.
Phoenix Group Chief Executive Peter Dixon said:
“This vital exemption also massively contributes to the ongoing reduction in carbon dioxide emissions in Northern Ireland by encouraging more energy users to switch to natural gas; where it is available. There is still a lot of potential here to expand gas to new areas. This levy, effectively a carbon tax, if implemented would impair the potential for new investment which is vitally needed to secure the expansion of the network and the resulting benefits that would bring for both the economy and the environment”.
Nigel Smyth, Director, CBI Northern Ireland, said his organisation would also be writing to government to urge that early action be taken to avoid such a levy on natural gas consumers. He said “We must convince the Enterprise Minister of the importance and impact of this issue. At a time when every penny counts such a move would undoubtedly have serious consequences for many businesses already under huge pressures. We must avoid further increases to our energy prices.”