Government decides more time is needed to talk about energy efficiency

Following discussions that have so far been "constructive and productive", the government has decided that an extra two months of consultation is needed in the run up to agreements on energy efficiency measures.

These agreements are intended to complement the proposed Climate Change Levy announced in this year's budget by providing energy-intensive businesses with a discount.

Agreements need to be signed before next spring's budget, when levy rates will be set. The levy itself is due for introduction in April 2001.

The Climate Change Levy is a key component in the government's strategy for meeting commitments made at the Kyoto global warming summit - a 12.5% reduction in greenhouse gas emissions by 2010.

On published "indicative" figures, the levy will put business energy costs up anywhere from 8% to 14% - thus the emphasis on improving efficiency.

Elliott Chase