UK Government Could Face Lawsuit If It Implements A Windfall Tax On Renewables 

[image credit: beforeitsnews.com]

Looks a tad optimistic. Nobody forced wind farm developers to bump up their prices to match the massive increases in gas and electricity charges. Invoking ‘net zero’ seems a bit of a cheek when they’re blatantly chasing maximum profits.
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A Cheshire wind farm developer has threatened to sue the UK government over its plans to impose a ‘windfall tax’ on renewables companies, reports OilPrice.com.

Community Windpower – which owns 1.5 GW of UK wind generation capacity – has said it will take legal action to block the UK’s Electricity Generator Levy.

The temporary tax imposes a 45 percent levy on “exceptional receipts” of more than £10m generated by selling wholesale electricity at average prices exceeding £75 per MWh.

Community Windpower has instructed London law firm Mishcon de Reya in its bid to block the new levy by way of judicial review.

Mishcon de Reya has written to the UK government, warning them they will take legal action if they push forwards with the levy, on the basis that the new tax contravenes the government’s own Net Zero strategy.

Mishcon partner Alexander Rhodes said: “The way this levy has been designed is completely at odds with the Government’s own stated objectives to transition the UK to a net zero economy and develop a secure supply of clean energy.”

“This levy cuts across those ambitions, contrary to the Government’s own legislated goals and legal responsibilities,” Rhodes said.

The new levy on electricity producers is set to come into force on 1st January 2023, after first being announced in the Autumn statement, and remain in place until 31st March 2028.

Full report here.

via Tallbloke’s Talkshop

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December 29, 2022 at 01:37PM

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