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No-deal Brexit will spell Group, which has been
investing in converting its
£16-a-tonne carbon tax coal-‚red power plants to
burning wood pellets with
the help of UK government
subsidies.
“It provides investors with
School of Economics. certainty and is a critical
“It’s probably high enough factor in ensuring an end to
to keep coal o„ the system the use of coal in the power
in the next couple of years. system,” Mr Gardiner said.
But the question will be The Treasury said in its
what they decide in the autumn budget document
longer term.” that the proposed tax
The tax is contingent Under the plan, the UK would apply to all
on a no-deal Brexit would essentially have two “stationary installations
separate yet ‚xed carbon currently participating
prices, including the current in the EU ETS” from
THE UK WILL INTRODUCE the UK’s commitment to carbon price support the beginning of April,
a provisional £16-a-tonne reducing pollution. system — commonly if Britain leaves the EU
carbon emissions tax in the The announcement, while known as the carbon “oor without a deal.
event of a no-deal Brexit as contingent on a no-deal — which has been frozen “A rate of £16 would
part of contingency plans Brexit, removes one of the at £18 a tonne until 2021. apply to each tonne of
to replace the EU Emissions big uncertainties for UK Combined, emissions will carbon dioxide emitted over
Trading Scheme, according power markets at a time of be taxed at a ‚xed rate of and above an installation’s
to The Financial Times. great upheaval. £34 a tonne in the UK, well emissions allowance,
The level set by the “This is essentially above the £25 level most which would be based
Treasury is broadly in line replicating the role of the analysts believe is needed on the installation’s free
with the current EU ETS EU ETS component in the to make the use of cheaper allowances under the EU
price, which suggests it event of a no-deal Brexit,” but highly polluting coal ETS,” the Treasury said. It
would be high enough to said Josh Burke at the unattractive. added that the carbon “oor
continue disincentivising the Grantham Research Institute The measure was price could be reduced aœer
use of coal by power plants on Climate Change and the welcomed by Will Gardiner, 2022 “if the total carbon
and factories and maintaining Environment at the London Chief Executive of Drax price” remained high. ■

Adverts for smart meter roll out banned the ASA’s website.
An ASA spokesperson
from claiming the devices are ‘free’ said: “The use of the term
‘free’ in ads can sometimes
cause confusion for
Gaz and Leccy are £200 per household, with consumers and should not
the smart meter providers expected to pass be used unless something
rollout's mascots on the costs to customers is a genuine free o„er. It’s
through higher bills. important consumers are
But as the cost of the not misled so, in this case,
programme spirals, energy the advertiser agreed to
‚rms have blamed smart amend their ad.
meters as a reason for “We recommend that
a string of controversial they use the term ‘at no
price hikes. extra cost’ instead, because
The ASA said that because consumers will be paying
people would be paying for the smart meter in the
for smart meters indirectly same way that they already
ADVERTS FOR THE told Smart Energy GB, through their bills they pay for their current meter,
government’s smart meter the industry body which were not a “genuine free which means it is not
roll out have been wrongly produces the adverts, to stop o„er”, meaning they should technically ‘free’.”
claiming the meters are making the claim in TV, radio not be described as free. Between April and August
‘free’, advertising regulators and print adverts. The case was resolved via a Smart Energy GB produced
have said. The smart meter rollout so-called “informal ruling”, TV, radio and print adverts
The Daily Telegraph was originally estimated to meaning Smart Energy GB which the ASA has said on
revealed that the Advertising cost energy companies £11 avoided having the details October 10 must not appear
Standards Authority has billion, equivalent to around of the case published on again in their current form. ■

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News.indd 2 15/11/2018 14:22