Financial Services Authority of the United Kingdom (FSA) is accused of undermining official policy by refusing new applications for community projects in renewable energy sources, writes The Guardian.
The future community-owned projects in green energy, which ministers say are crucial to break the dominance of the big six UK energy producers (“Big Six”), is about to be jeopardized by the Authority, according to declarations by cooperatives and the Labour Party.
Thousands of towns and villages formed cooperatives in the UK in recent years to generate clean electricity with the help of wind turbines and solar panels. Ed Davey, Secretary of Energy, visited last year a solar project installed in a tower block in south London and said that he wants “no more, nor less than an energy revolution in the communities”, while former Minister of Environment, Greg Barker, said such projects are necessary to “break the grip of domination from the part of large energy companies.”
But in the last six weeks, FSA, which registers new cooperatives, has blocked many new applicants because, the authority says, they do not have enough members, despite the fact that previously authorized similar organizations.
Tom Greatrex, MP and candidate for Minister of Energy, sent a letter to Martin Wheatley, Executive Chairman of FSA, warning that the change of attitude puts at risk the future of energy generated by cooperatives in the UK.
“The government of David Cameron speaks well of energy created for the community – but the reality is that future energy cooperatives are in danger because of the approach changing on the part of FSA. This sudden change threatens a model that combines the twin goals of energy decarbonization and community involvement”, said Greatrex.
“FSA urgently needs to reconsider its approach – and Ed Davey needs to wake up and prevent lasting damage to the prospects of many community-owned energy projects in the UK”, he added.
Mike Smyth, President Energy4All, an organization that helps community groups to set up energy co-operative projects, said earlier that the FSA has stopped “completely out of the blue” the registration of new co-ops and blocked at least six to eight applicants.
“To completely block the development of this field without any proper explanation and a misunderstanding of what is happening. Energy sector is ready for mutual involvement – there is a lot lack of confidence in energy companies – and they (FSA ) stopped everything.”
“Is the Government policy that all new generation of renewable energy projects to be held next year in part or whole by a cooperation organization at the community level. And FSA actively undermine this policy by eliminating the well adjusted for this business. It makes things more difficult, hampers innovation and opposes the participation of people in the energy sector.”