Renewables Obligation (Scotland) consultation: Scottish Government response

Annex A - Summary of questions and analysis of responses

Q. We would like to hear and receive the views of consultees on the decisions in relation to implementing the exemption for EIIs as a consequence of the UK Government's proposals, as they relate to the RO Scotland.

Ten respondents indicated that they were in favour of transitioning to an exemption scheme, with most noting that it will provide energy intensive businesses with greater certainty of support in future as well as providing quicker and more accurate support.

Five respondents stated that they opposed the transition to an exemption scheme, with reasons including the increased costs to non-eligible EIIs and the impact on fuel poor households.

Five stakeholders did not comment on the consultation key issue but rather raised related issues.

It should be noted that four stakeholders who did not express support for the transition did so in acknowledgement that it was likely to be adopted by the UK Government. Should UK Government implement an exemption scheme, thirteen respondents argued that Scottish Government should do so uniformly. Many respondents argued that this would allow for the scheme to work as simply as possible throughout GB.

Only one party disagreed with this notion, stating that, in the event of any delay to the UK Government's implementation, Scottish Government should implement the exemption at 1 April 2017 or as soon as possible thereafter.

In the course of their responses, stakeholders discussed a number of related issues. These included assessments of the impact on non-eligible EIIs, the proposal not to regulate suppliers to pass on the benefit of the exemption and the impact of additional costs to households, particularly those in fuel poverty.