As part of the new Energy Prices Bill, the Government has announced it will legislate for a Cost-Plus Revenue Limit, which will act as a cap on revenue renewable generators can receive.

The Government is proposing that the Cost-Plus Revenue Limit will apply to renewable generators that are outside of the fixed-price Contracts for Difference (CfD) scheme – mainly older wind and solar energy projects – and will consider whether it will apply to nuclear and biomass generation.

Reacting to the Energy Prices Bill, RenewableUK’s CEO Dan McGrail said: “We are concerned that a price cap will send the wrong signal to investors in renewable energy in the UK. A price cap acting as a 100 per cent windfall tax on renewables’ revenue above a certain level, while excess oil and gas profits are taxed at 25 per cent, risks skewing investment towards the fossil fuels that have caused this energy crisis.”

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