Telephone 020 7238 3157 Website www.defra.gov.uk …

Telephone 020 7238 3157
Website www.defra.gov.uk




                                                                          4 August 2008




Dear Stakeholder,

AID FOR ENERGY CROPS: OPTIONAL SYSTEM OF APPROVED OPERATORS

I am writing to update you on the position in relation to `approved operators' under the Aid
for Energy Crops scheme.

EU reforms of the scheme last year gave Member States the option of introducing an
approval system for collectors/processors. Were this to have been introduced it would
have replaced the present need for securities to be lodged with the Rural Payments
Agency. As such, we recognise that this would have been a simplification for the industry.

However, as you may be aware, the future of the scheme has been uncertain and the
European Commission's proposals for the CAP Health Check, which were published in
May of this year, propose the abolition of the scheme from 2010. In view of the likelihood
that the scheme has only one further year to run, we have decided not to set up a new
approval system. Securities will therefore be required for the 2009 scheme year as
normal.

The Health Check negotiations are expected to be concluded around the end of the year.
Should the Health Check result in the scheme having a longer lifespan than is currently
proposed, we will revisit the issue of approved operators.


Yours sincerely



CLAIRE WILLIAMS
Single Payment Scheme Policy, Defra

9 Millbank, Area 5c, C/o Nobel House, 17 Smith Square, London, SW1P 3JR