Drax Power Ltd & Anor, R (on the application of) v HM Treasury & Ors

Drax Power Ltd & Anor, R (on the application of) v HM Treasury & Ors

The court held that the Claimants failed to establish that the government had promoted a legitimate expectation of a two-year lead time or equivalent compensation for the withdrawal of the RSE Exemption. The modelling and past practice did not amount to a precise or unambiguous assurance. In the absence of such an expectation, the abrupt removal was not unlawful under EU law or the ECHR. The decision was proportionate, justified by public interest, and within the government's margin of appreciation. The application for judicial review was therefore dismissed.

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 / Judgment After Rolled Up Hearing (permission and Merits)
Outcome
Application for judicial review dismissed
Legal Topics
Legitimate Expectation, Legal Certainty, Proportionality, Tax Law, Climate Change Levy, Renewable Energy, Property Rights, Article 1 Protocol 1 ECHR
Constitutional Law Administrative Law EU Law Human Rights Legitimate Expectation Legal Certainty Proportionality Tax Law +4 more

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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 / Judgment After Rolled Up Hearing (permission and Merits)

Legal Issues

  1. 1 Whether the removal of the Renewable Source Electricity Exemption from the Climate Change Levy with 24 days' notice violated EU law principles of foreseeability, legal certainty, and protection of legitimate expectations
  2. 2 Whether the removal was disproportionate under EU law and the ECHR
  3. 3 Whether the Claimants' rights under Article 1 Protocol 1 ECHR were infringed

Ratio Decidendi

The court held that the Claimants failed to establish that the government had promoted a legitimate expectation of a two-year lead time or equivalent compensation for the withdrawal of the RSE Exemption. The modelling and past practice did not amount to a precise or unambiguous assurance. In the absence of such an expectation, the abrupt removal was not unlawful under EU law or the ECHR. The decision was proportionate, justified by public interest, and within the government's margin of appreciation. The application for judicial review was therefore dismissed.

Court Disposition

Application for judicial review dismissed