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(From Mondaq.com)
Article by Simon Thorne
Government Energy Policy
Energy policy is under the spotlight. In June last year the Prime Minister asked the Performance and Innovation Unit of the Cabinet Office (PIU) to undertake a review of the strategic issues surrounding energy policy for Great Britain. The PIU published "the Energy Review" on 14 February this year.
The Government intends to issue a White Paper at the beginning of next year setting out its approach to future energy policy in the light of the PIU report, the findings of the Government's current consultation process and existing relevant Government commitments.
The key elements of current UK strategy include the new electricity trading arrangements, the introduction of the renewables obligation to succeed the non-fossil fuel obligation, the climate change levy and an expanded support programme for renewable energy evidenced by grants and increased capital allowances.
A key aim of Government policy is to significantly reduce greenhouse gas emissions so long as the cost to the consumer is acceptable. The PIU recommended that the target for the proportion of electricity supplied from renewables sources should be increased from 10% by 2010 to 20% by 2020.