A Cheshire wind farm developer has threatened to sue the UK government over plans to impose a ‘windfall tax’ on renewable energy companies.
Community Windpower – which has 1.5 gigawatts of the UK’s wind generation capacity – has said it will take legal action to stop the UK’s electricity generator levy.
imposes a 45 per cent levy on “extraordinary receipts” of more than £10m generated by the floating tax selling wholesale electricity at an average price of more than £75 per MWh,
Community Windpower Instructed London law firm Mishcon de Reya In his bid to block the new levy through judicial review.
Mischon de Reya has written to the UK government, warning them of legal action if they go ahead with the levy, on the grounds that the new tax violates the government’s own Net Zero strategy.
Alexander Rhodes, partner at Mishcon, said: “The way this levy has been designed is fully in line with the government’s own stated objectives of transitioning the UK to a net zero economy and developing a secure supply of clean energy. “
“This levy cuts across ambitions that are at odds with the government’s own legislative goals and legal responsibilities,” Rhodes said.
New fee on power producers to come into force from 1scheduled tribe January 2023, after first being announced in the Autumn Statement, and will remain in place until 31scheduled tribe March 2028.
The UK government’s announcement of the electricity generator levy comes after vowing to impose a 35 per cent windfall tax. On profits from oil and gas sector from 1 January 2023 to 31 March 2028.
Rod Wood, managing director of Community Windpower, called the new levy “a smash and grab raid on renewable energy that will pull the rug out from under the UK’s efforts to cut carbon, cut consumer bills and bring about energy security.”
“Not only does this measure chip away at ministers’ green credentials, it will also siphon hundreds of millions of pounds from investment in green energy, harm renewables industries and cost high-quality jobs,” Wood said.
Wood said, “Legal action is a last resort, but the levies’ proposals quietly slipped away before Christmas are worse.”
“Despite forceful representations made directly to the government over the past two months, ministers remain immune to reason.”
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