British government to review biomethane subsidy levels

LONDON, Feb 28 (Reuters) - The British government has launched a review of its biomethane subsidies over concerns that the costs do not justify the returns, the Department of Energy and Climate Change (DECC) said on Friday.

The subsidies are aimed at promoting clean and efficient energy technologies, but tight budgets in the wake of the financial crisis have resulted in several government reviews into such schemes.

"The biomethane injection tariff is to be reviewed following representations from industry that there is a risk of overcompensation for large biomethane... under the current Renewable Heat Incentive (RHI (Xetra: RAD.DE - news) )," DECC said in a statement.

"Their costs may not justify support at current levels," it said.

DECC said it would review the tariff's cost and performance data, and plans to consult this summer if changes are required.

Britain's RHI is a long-term financial support programme for industry and the public sector which was launched in 2011. There are plans to extend the RHI to the household sector. (Reporting by Melissa Massey; editing by Henning Gloystein and Jason Neely)