Energy bosses have expressed concern that the Government’s proposal to cap revenues from renewable generators and nuclear power plants could put off investors. The Government announced on Tuesday that it plans to introduce a temporary “cost-plus revenue limit” in order to break the link between high gas prices and the amount made by all electricity producers.
It announced the proposed cap as part of its Energy Prices Bill but provided little detail about how it would work, saying the “precise mechanics will be subject to consultation launched shortly”. The move comes after the EU announced plans for revenue cap of 180 euros (£159) per megawatt hour for wind, solar and nuclear power last month.
Leaders in the energy sector warned that the mechanism must not put off investment and should be comparable to other countries. Dhara Vyas, Energy UK’s director of advocacy, said they welcomed the Bill as “much-needed support” for millions of households and businesses.
