The UK government has published details of its Energy Prices Bill that contains provision for a new ‘Cost-Plus-Revenue Limit’ for electricity generated from renewable sources.
Commenting on the provision, a spokesperson for SSE said:
“Any revenue cap must be set at a level that doesn’t discourage essential investment in the UK’s renewable energy sector and therefore should be comparable to other countries, particularly given the €180 cap being implemented by the EU. After all, the key lesson of the current energy crisis is the need to bolster our homegrown energy defences.
“It is also vital that the cap does not negatively impact on security of supply this winter, therefore flexible technologies, such as hydro, that require strong price signals to meet demand when most needed should be excluded.
"We will now work with the Government on the details of the policy to ensure it meets its objective of addressing extraordinary profits without throwing away the UK’s global leadership position on renewable energy investment”.