Energy Secretary Ed Davey has confirmed that the decision on setting new bands for the Renewable Obligation (RO) scheme has delayed.
It was expected that the decision would be made before the Parliamentary summer recess that began this week.
But when questioned about the matter at the Energy & Climate Change Committee in the House of Commons, Ed Davey confirmed that discussions were still ongoing within Government.
He said: “We have been working hard to conclude it. The crucial thing is that when we do come out with it, we can explain and justify it.”
Reports in the Telegraph newspaper suggested that Chancellor George Osborne had been involved in a row with Ed Davey with the Chancellor pushing for a 25 per cent cut in RO subsidies.
However, Ed Davey denied these discussions had taken place. He said: “I think I can happily say on the record that there has been no one in Government arguing for the kind of cuts you have seen in the newspapers of 25 per cent.”
The Energy and Climate Change Secretary said that he hoped to publish the new bands by 30 September.
Renewable Energy Association chief executive Gaynor Hartnell slammed the delay. She said: “Those within DECC know that this delay is immensely damaging to the industry and will be seeking to resolve things as rapidly as they can. Developers need certainty and soon.
“This delay is the most serious yet. It does not bode well for the schedule for electricity market reform, which is far more complex.”