"The increase to the electricity generators levy (EGL) has been timed to land alongside a sweeping set of power market reforms designed to 'break the link' between volatile gas prices and the cost of electricity paid by households and businesses."
"Industry figures have branded the package a 'sham', warning it risks locking consumers and businesses into higher bills for decades and chilling the investment climate for renewables."
"Ministers argue this will decouple renewables revenues from wholesale electricity prices, which are still set by the most expensive marginal plant on the system - almost invariably gas."
"Hardworking British families and businesses should not bear the brunt of global gas price shocks while electricity generators are making exceptional profits."
Rachel Reeves has raised the windfall tax on wind and solar producers from 45% to 55% to prevent them from profiting excessively from the recent oil and gas crisis. This increase coincides with power market reforms aimed at disconnecting electricity prices from volatile gas prices. Industry leaders criticize the reforms as potentially locking consumers into higher bills and deterring renewable investments. The new system offers exemptions for generators switching to fixed-price contracts, aiming to stabilize revenues for renewables independent of gas prices.
Read at Business Matters
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