Drax Power Ltd & Anor, R (on the application of) v HM Treasury & Ors [2016] EWHC 228 (Admin) (10 February 2016)

Drax Power Ltd & Anor, R (on the application of) v HM Treasury & Ors [2016] EWHC 228 (Admin) (10 February 2016)

The court held that while the Claimants had a legitimate expectation that significant fiscal changes would be accompanied by reasonable notice, there was no precise or unambiguous assurance from the Government guaranteeing a two-year lead time for withdrawal of the RSE Exemption. The abrupt removal, though undesirable, did not breach the EU law principles of legal certainty or legitimate expectation, nor was it disproportionate or in violation of Article 1 Protocol 1 ECHR. The overriding public interest in fiscal policy and value for money justified the measure. The claim was therefore dismissed.

Citation
[2016] EWHC 228 (Admin)
Parties
Claimant: DRAX POWER LTD; Claimant: INFINIS ENERGY HOLDINGS LTD; Defendant: HM TREASURY; Defendant: HM REVENUE & CUSTOMS; Interested Party: SECRETARY OF STATE FOR ENERGY AND CLIMATE CHANGE; Interested Party: THE GAS AND ELECTRICITY MARKETS AUTHORITY; Interested Party: FCC ENVIRONMENT (UK) LTD
Jurisdiction
England and Wales
Judgment Date
10 February 2016
Procedural Posture
Judicial Review / Permission and Substantive Hearing (rolled Up)
Outcome
Claim dismissed
Legal Topics
Legitimate Expectation, Legal Certainty, Proportionality, Article 1 Protocol 1 ECHR, Climate Change Levy, Renewable Energy Support, Primary Legislation Challenge
Public Law Tax Law European Union Law Human Rights Legitimate Expectation Legal Certainty Proportionality Article 1 Protocol 1 ECHR +3 more

Case Brief

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Parties

DRAX POWER LTD

Claimant

INFINIS ENERGY HOLDINGS LTD

Claimant

HM TREASURY

Defendant

HM REVENUE & CUSTOMS

Defendant

SECRETARY OF STATE FOR ENERGY AND CLIMATE CHANGE

Interested Party

THE GAS AND ELECTRICITY MARKETS AUTHORITY

Interested Party

FCC ENVIRONMENT (UK) LTD

Interested Party

Procedural Posture

Judicial Review / Permission and Substantive Hearing (rolled Up)

Legal Issues

  1. 1 Whether the removal of the RSE Exemption from the Climate Change Levy with 24 days' notice violated EU law principles of legal certainty and legitimate expectation
  2. 2 Whether the removal was disproportionate under EU law
  3. 3 Whether the removal violated the Claimants' rights under Article 1 Protocol 1 ECHR

Ratio Decidendi

The court held that while the Claimants had a legitimate expectation that significant fiscal changes would be accompanied by reasonable notice, there was no precise or unambiguous assurance from the Government guaranteeing a two-year lead time for withdrawal of the RSE Exemption. The abrupt removal, though undesirable, did not breach the EU law principles of legal certainty or legitimate expectation, nor was it disproportionate or in violation of Article 1 Protocol 1 ECHR. The overriding public interest in fiscal policy and value for money justified the measure. The claim was therefore dismissed.

Court Disposition

Claim dismissed

Orders

  • Permission for judicial review granted
  • Substantive claim dismissed