Banding of the renewables obligation: competition assessment of grandfathering (2007)

Reckon was asked by renewable energy generator Summerleaze AnDigestion for an analysis of competition issues to support its response to a Government consultation on the "banding" of the renewables obligation scheme. AnDigestion was concerned about adverse effects of the Government's proposed "grandfathering" rules for biomass technologies other than co-firing.

Our analysis showed how the Government's proposals in their original form were discriminatory against plants that had been early movers in developed emerging technologies, and that this discrimination was not objectively justified by any policy objective of the Government. The proposals did not pass the Government's own competition assessment test.

The Reckon report was published as part of AnDigestion's consultation response (24 pages, 10.9M PDF).

The Government subsequently put forward revised proposals which did not suffer from these discriminatory features.

*Franck Latrémolière

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Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.