Connect with us

Hi, what are you looking for?

Business

Wind farm developer in judicial review bid against UK government over ‘windfall tax’ plans

A Cheshire wind farm developer has threatened to sue the UK government over its plans to impose a ‘windfall tax’ on renewables companies.

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 per cent levy on “exceptional receipts” of more than £10m generated by selling wholseale 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.

The UK government’s announcement of the Electricity Generator Levy comes after it vowed to impose a 35 per cent windfall tax on profits from the oil and gas sector from 1 January 2023 to 31 March 2028.

Community Windpower’s managing director Rod Wood called the new levy “a smash and grab raid on renewables that will pull the rug out from under the UK’s efforts to cut carbon, cut consumer bills and bring on energy security.”

““This measure not only leaves Ministers’ green credentials in shreds, it will also suck hundreds of millions of pounds out of investment in green energy, hammering renewable industries and costing high quality jobs,” Wood said.

“Legal action is a last resort, but the levy proposals quietly slipped out ahead of Christmas are worse than we feared,” Wood added.

“Despite forceful representations made directly to Government over the past two months, Ministers have remained immune to reason.”

Read more:
Wind farm developer in judicial review bid against UK government over ‘windfall tax’ plans

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    Since the rise of online casinos, cybersecurity has become a major concern for both casino operators and players alike. The transactions that go around...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 rightdecisionnow.com | All Rights Reserved