Senior Conservative MP Tim Yeo has come out in strong support of the Renewable Energy Association (REA) he heads as president as it faces a High Court showdown over allegations of incompetence.
Respected Mr Yeo, who is the influential Chair of the Commons' Energy and Climate Change Select Committee, said he had “confidence in the management” of the REA and its wholly owned REAL consumer scheme as the organisation faces a legal challenge over its actions.
The long-serving Conservative MP, who has held Government posts in trade and industry, transport, the environment and agriculture, was appointed as the REA's first ever president in March.
The REA and its REAL consumer scheme are currently facing a High Court legal case over damaging claims it has unfairly targeted companies with a campaign of disruption.
The two organisations are being challenged over whether it is acting beyond its powers and unfairly interfering with legitimate companies.
The court documents also raise concern that the REA and the REAL Scheme, which was recently chosen to help regulate the Green Deal scheme, were last year both actually operating while insolvent.
But in a statement, a spokesperson for MP Tim Yeo, made clear he “is not involved in any way with or responsible for its management or finances, nor with the management or performance of REAL”.
The statement added: “However he has confidence in the management of both organisations and has been advised that accounts will shortly be filed which will confirm that REA has positive net assets.”
A judge has been asked to force the REA and REAL to reassure it’s members by providing up to date information about its finances and reveal the nature of an employee fraud that occurred in 2008 and what steps it has taken to recover the loss.
A claim was lodged with the High Court in London last month, which sets out in detail how the industry trade association has allegedly acted and is asking for a ruling that the REAL must act without bias and provide members with genuine support.
It claims by meddling in the affairs of companies, REAL is not acting “fairly, reasonably or impartially”.
The court action has been launched by the same legal team that defeated the Government over the unlawful cuts to the Feed-in Tariff on behalf of MCS-registered Crystal Windows and Doors.
London-based Crystal, which has an annual turnover of £26 million, is one of the largest employers of its kind in the region and has installed over 120,000 windows and 600 solar power systems since it diversified into renewable energy in January 2011.
Management at the REA and REAL say they rebut all facts in the claim and say they will defend the court proceedings robustly.