Autumn Statement and National Infrastructure Plan from an Energy Perspective

Much of the energy related content in the Autumn Statement and the National Infrastructure Plan is not, and does not claim to be, new. The press has tended to concentrate on the expanded transport programme as opposed to energy projects.

Summarised below are the key points.

Energy Specific

New measures are limited in number and scope. This is not surprising given that the government does not generally directly invest in the energy sector and there have been a large number of recent decisions and announcements (changes to the ROC and the FiT, launch of the Renewable Heat Incentive etc). Measures include:

•    Support for energy intensive manufacturing industry (probably steel, aluminium, cement, petro chemicals) worth approximately £250 million from 2013. There seems to be a multi tiered approach to this with a mixture of direct relief from the carbon price floor and EU Emissions trading, an increase in the applicable relief from the climate change levy and reducing electricity costs
•    Resolution of radar interference issues with offshore wind farms
•    Completion of the roll out of smart meters by 2019

Aside from these, support for the development of Carbon Capture and Storage, the Nuclear building programme, renewables generation (biomass and offshore wind being specifically mentioned), new Gas CCGT and the transmission networks is confirmed.

General

There are a number of measures that, whilst not energy specific, may be beneficial to the energy sector or parts of it (especially smaller companies). These include:

•    Support for training and skills
•    National Loan Guarantee Scheme to lower cost of bank loans for businesses with a turnover of up to £50 million
•    Initial £1 billion through the Business Finance Partnership for mid size and SME's from 2012
•    Extend the Enterprise Finance Guarantee from January 2012 to include businesses with a turnover of up to £44 million
•    Changes to employee legislation
•    Launch of a new Seed Enterprise Investment Scheme from April 2012. It will offer 50% tax incentives on investments and a Capital Gains Tax exemption on gains realised in 2012/2013 and invested in the SEIS in the same year
•    Extending the current small business rate relief holiday for a further six months from 1 October 2012 and the ability to defer 60% of the RPI increase in the 2012/2013 rate to later years
•    Increase in the Regional Growth Fund for England by £1 billion (consequential increases in Scotland, Wales and Northern Ireland)
•    Some increases in the funds available for R&D

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