As part of the degression system introduced by DECC in February of this year, tariffs available to new applicants will be reduced where uptake of a technology is greater than forecast. Uptake is monitored on a quarterly basis against a series of 'triggers', with updates and one month's notice given before any cuts to the tariffs are applied. Uptake has been high for medium commercial biomass and as result, DECC have confirmed that they will be reducing the relevant tariffs by 5%. This reduction to the tariffs will be the first time the degression mechanism has been applied since the degression regulations came into force in April 2013.

The revised rates for new applicants from 1st July 2013 are:

Current Rates New Rates (From 1st July 2013)
Tier 1: 5.3p/Kwh Tier 1: 5.0p/Kwh
Tier 2: 2.2p/Kwh Tier 2: 2.1p/Kwh

Further announcements on potential tariff reductions under the degression system will be made online by 1st September 2013, December 2013 and March 2014.



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