Green energy levy under fire: Plans ‘threaten investment needed to ensure the country’s energy security’, says industry body
The industry body says plans to cap the revenue earned by green energy companies are “a threat to the investment needed to ensure the country’s energy security”.
The Government’s energy pricing bill, which will be debated in the House of Lords today, contains proposals to cap the income of low-carbon energy producers such as wind and solar farms.
Storm: Government’s energy pricing bill contains proposals to cap income for producers of low-carbon energy such as wind and solar
Earnings above this limit will be taxed at a much higher rate.
But Energy UK said the proposals were a “de facto windfall tax” on clean energy firms that would be “more punitive than that levied on oil and gas producers”.
Energy suppliers that rely on fossil fuels will only see their profits, not their income, taxed at a higher rate of 25 per cent and will also benefit from an 80 per cent investment allowance, giving them a tax saving of 91p for every £1 they invested.
Adam Berman of Energy UK said: “It’s amazing that the government has proposed a scheme that will penalize investment in clean, cheap, low-carbon generation in favor of polluting oil and gas extraction.”
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