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UK ministers pressing ahead with renewable energy windfall tax

By Michele Maatouk

UK ministers are reportedly pressing ahead with plans to cap prices at renewable energy generators, after talks failed to persuade them to voluntarily fix contracts well below the current wholesale rates.
According to The Times, a cap to stop renewable electricity generators cashing in on soaring power prices could rake in up to £14bn a year for the Treasury.

Conservative think tank Onward said that it could earn the government between £4.1bn and £10.2bn, assuming about 25% of generators are receiving bumper profits from higher wholesale power prices, The Times said.

Onward said a £10bn windfall would equate to relief of up to £364 per household. Those at risk of being hit by the tax say the windfall will be much smaller.

Energy firms fell on the news. At 1030 BST, Centrica shares were down 3.2%, while Drax shares were 4.4% lower.

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