Centrica has welcomed the Budget’s focus on renewable energy.

Centrica has welcomed the measures set out in the UK Budget yesterday (22 April), in particular its renewable energy aims, however fuel poverty remains an issue for some organisations.

Measures set out in the Budget include: a commitment to cut carbon emissions by more than a third by 2020; support for low-carbon industries; funding for offshore wind projects; and the encouragement of low-carbon energy and green manufacturing.

Gas and electricity networks will also benefit from support and additional investment to help them prepare for energy security and climate change objectives.

For the consumer, the Chancellor, Alistair Darling, announced £435 million worth of support for energy efficiency schemes for homes, firms and public buildings. In addition, he set out higher-level winter fuel allowance plans for pensioners – those over 60 will receive £250 support and over 80s £400.

Nick Luff, Centrica’s Group Finance Director, was pleased with the focus on renewable energy: “The Government has put forward a number of welcome measures that provide a boost to UK energy supply security and the meeting of its renewable energy commitments. We welcome the proposal to adjust the Renewable Obligation (RO) to help with the challenging economics of new offshore wind development, which should aid in the creation of many new “green collar” jobs.

“The RO rewards renewables producers with funding from those energy suppliers that choose to source their power from cheaper but higher emitting fossil fuel generation. It is not a government subsidy, rather a Robin Hood-style redistribution mechanism taking money from the ‘dirty’ to pay the ‘clean’.”

However, not all organisations are happy with the Budget’s energy aims. One of the UK’s leading charities Help the Aged, which recently merged with Age Concern, has voiced its concern. Michelle Mitchell, its Charity Director, commented: “Maintaining the Winter Fuel Payment, measures to help grandparents and help for low-income savers will provide cheer to pensioners in an otherwise gloomy Budget. But the failure to do more to tackle fuel poverty will continue to leave many pensioners out in the cold.”