Plans to cap revenue generated by green energy firms are a ‘threat to the investment needed to safeguard the country’s energy security’, an industry body has claimed.
The Government’s Energy Prices Bill, which will be debated in the House of Lords today, contains proposals for a revenue cap on low-carbon energy makers such as wind and solar farms.
Storm: The Government’s Energy Prices Bill contains proposals for a revenue cap on low-carbon energy makers such as wind and solar farms
Revenues above this cap will be taxed at a much higher rate.
But Energy UK said the proposals are a ‘de facto windfall tax’ on green energy firms, which would be ‘more punitive than that levied on oil and gas producers’.
Energy providers that rely on fossil fuels will see only their profits, not revenues, taxed at a higher 25 per cent rate and will also benefit from an 80 per cent investment allowance – giving them a 91p tax saving for every £1 they invest.
Energy UK’s Adam Berman, said: ‘It’s astonishing the Government has proposed a scheme that would penalise investment in clean, cheap, low-carbon generation in favour of polluting oil and gas extraction.’
