Power & Energy

UK Renewable Energy Firms warn, Government Plan for Price Cap is Risky

The government of the United Kingdom is all set to cap the price of electricity from older nuclear and renewable facilities as early as this week. The new plans of the UK government could hit the profits of energy companies including Scottish Power, SSE, EDF Energy, and RWE.

The energy companies are concerned that further price limits could affect the reputation of the United Kingdom as a stable regulatory environment and deter investment in the future. The heads of energy companies will discuss their concerns with the UK government.

Currently, the price of electricity produced in older facilities is linked to the overall cost of gas. This is different at newer energy facilities, which manufacture power at an agreed price. In previous years, electricity produced by gas had been the cheapest.

The nuclear and renewable energy producers are making very significant excesses because the price of gas has rocketed, but the costs of energy production have not. The profits have prompted calls for a windfall tax on the renewable firms.

The electricity producers are lobbying hard against the new price cap, and warn that an intervention has several risks. The price cap also decreases the incentive for energy retailers to purchase in advance, thus creating a less predictable, and more volatile market.

Writing is a medium to express feelings and convey facts. A creative mind never rests in peace and this amazing platform gives me the freedom to write about what I like most.

I’ve been a writer/blogger for the last twelve years and have covered technology-related topics. However, I also have considerable years of experience in writing for various domains – Technology, Beauty, Fashion, Pharmaceutical, human psychology etc. Technology is my forte.

I’ve handled many interesting projects. Writing is my passion. As an author, I’ve learned a lot in my long journey of penning down my thoughts!

Recent Posts

Premier League Clubs Agree to Remove Gambling Sponsorships from Team Shirts

After discussions with the government, Premier League clubs have agreed to stop sponsoring their front…

1 year ago

Russia’s Novatek to Gain Shell’s Stake in Sakhalin-2

Analysts reported that Novatek, a Russian natural gas producer, acquired Shell's stake in the Sakhalin-2…

1 year ago

Volkswagen Launches New-Gen Electric Motor to Power its “ID” Family

The electric drivetrain of the next generation for Volkswagen's "ID" has been unveiled. Family EV.…

1 year ago

Egg Prices to Reach Record High in 2023 Globally

According to research, global egg prices are expected to remain at an all-time high until…

1 year ago

Audi Selects Ohme as Smart Charger Partner in UK

Ohme becomes Audi's Official UK Smart Charger Partner Ohme has been selected as Audi's new…

1 year ago

General Motors Invests EnergyX to Unlock Lithium Supply in North America

GM Ventures has signed a strategic agreement to develop EnergyX's lithium extraction and refinery technology,…

1 year ago