Don’t kill off all our hydro power plans
FEARS that a hike in business rates could kill off community hydro projects in North Wales have sparked demands for Welsh Government action.
Projects like Ynni Padarn Peris in Llanberis and Ynni Ogwen in Bethesda were launched last month after being backed financially by the local communities. But already there are concerns they could become unviable after the recent business rates revaluation – which has left some schemes with increase of up to 900%.
Gwyndaf Hughes, from Ynni Padarn Peris, said: “These ventures were set up to gain benefit to local communities and the change to the business rates means that there is no benefit - all the gain goes back as business rates.
“Several hydros have gone out of business as bankrupt and others have faced rate increases of several hundred per cent.
“Many hydros are privately owned but many are for community benefit such as Ynni Padarn Peris and Ynni Ogwen in Bethesda.
“Why make these unviable after giving them several thousands of pounds to set them up as ventures that would be of benefit to their communities?”
Arfon AM Siân Gwenllian AM said: “It is imperative that community hydro projects such as these are given the best start and the most favourable circumstances in which to flourish, and that is why I have such grave concerns regarding the changes to business rates.”
Plaid Cymru has called for a business rate relief scheme to be set up to help community hydro projects after a “ridiculous” increase in their business rates.
Challenging the First Minister, Siân Gwenllian warned that the changes to business rates had a disproportionately negative effect on the sector, and called on the government to offer support to mitigate the damage.
She added: “I’m pleased that across Wales, community hydro schemes are harnessing one of our most reliable natural resources – water – and using the profits to bring benefits to local people.
“I’m pleased that to have three of these community hydro schemes in my constituency - YnNi Padarn Peris, Ynni Ogwen and Ynni Anafon.
“These are schemes that are owned and run by local people, and the profit they make goes back into the local community. They are the kind of projects that we should be promoting, not penalising.”
A Welsh Government spokesperson said: “A range of schemes exist to help small businesses with their nondomestic rates. More than £210m of relief is being provided in 2017-18.
“We have met with representatives of community hydro schemes to assess the effects of the 2017 revaluation and consider what support we might provide. Organisations have also been invited to submit proposals to benefit from £14m of EU funds for small scale renewable energy initiatives.
“We will shortly be consulting on a new, permanent small business rates relief scheme, to be introduced next year. As part of this we will be considering reliefs for certain sectors, including community energy.”