One of the primary objectives of the current review of feed-in tariffs is to ensure that the Feed-in Tariffs (FITs) scheme does not cost more to consumers than the amount set in last year's spending review (i.e. around £900 million over the period 2010-11 to 2014-15 in nominal undiscounted prices). This includes a saving of £40 million (around 10%) in 2014-15 compared with original projections carried out before the start of the scheme. It also represents a significant further saving compared with our estimation of likely spend in the absence of a review this year.
The spending review envelope for each year is shown in the following table. It is important to note that each year's figure includes the ongoing cost associated with installations commissioned in previous years.
|Envelope (£ million)|