The UK government is considering a cap on revenue made by renewable energy generators and nuclear power plants to ensure they are not cashing in on record-high energy prices.
Prime Minister Liz Truss could announce a cap after saying companies should be able to invest their profits.
A cap on surplus profits in renewables would be similar to a European Union decision to claw back what are considered excess revenue from companies largely unscathed by high gas costs.
“We have been working with low-carbon generators to find a solution that will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear,” Business Secretary Jacob Rees-Mogg said.
The opposition Labour Party said the government was performing a U-turn, but Mr Rees-Mogg denied the proposal amounted to a windfall tax.
The government said it would try to break the link between high gas prices and the amount made by electricity producers, without releasing much detail.
The price of gas determines the cost of electricity, so as gas prices soared over the past year, many of Britain’s wind and solar farms were paid much more than usual for their products, although their prices had not increased by much.
The government said it planned to introduce a “cost-plus revenue limit”.
It did not say whether cheaper gas generators and coal power plants, which also benefited from the current set-up, would be affected by the new rules.
“The precise mechanics of the temporary cost-plus revenue limit will be subject to a consultation to be launched shortly,” the Department for Business, Energy and Industrial Strategy said.
Officials and ministers have been working closely with the industry on the details, and the proposal would come into force at the start of next year.
Wind turbines around the world — in pictures
It would apply in England and Wales. The government in London said it was consulting with the devolved administration in Edinburgh to see if it should extend to Scotland.
The legislation would also allow the rules to apply in Northern Ireland.
“Businesses and consumers across the UK should pay a fair price for energy,” Mr Rees-Mogg said.
With prices spiralling as a result of Russia's invasion of Ukraine, the government was taking swift and decisive action, he said.
Some of the UK’s wind and solar farms are already paying back their excess profits.
Wind farms and other generators built under the Contracts for Different scheme, which was launched more than five years ago, return money to customers when prices are high.
The government and industry have also backed plans for older wind and solar farms to move on to these kinds of contracts.
Masdar-backed floating wind turbines bring more power to UK — video
Weeks ago, the government announced a cap that limits household energy bills to 34p for each unit of electricity and 10.3p for each unit of gas they use.
“Our actions will mean that energy bills for the typical household will be half what they would have been this winter,” said the Chancellor of the Exchequer, Kwasi Kwarteng.
“We are protecting people, holding down inflation and preventing (Russian President Vladimir) Putin’s energy price rise from causing long-term harm to our economy by supporting businesses.”
It is the latest move on renewables by the government amid reports that it was considering clamping down on solar farms built on land that could be used for farming.
Test series fixtures
(All matches start at 2pm UAE)
1st Test Lord's, London from Thursday to Monday
2nd Test Nottingham from July 14-18
3rd Test The Oval, London from July 27-31
4th Test Manchester from August 4-8
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Read more about the coronavirus
Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
NBA Finals so far
(Toronto lead 3-1 in best-of-seven series_
Game 1 Raptors 118 Warriors 109
Game 2 Raptors 104 Warriors 109
Game 3 Warriors 109 Raptors 123
Game 4 Warriors 92 Raptors 105
SANCTIONED
- Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
- Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB.
- Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.
- Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
- Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
if you go
The flights
Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.
The trip
Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
UAE central contracts
Full time contracts
Rohan Mustafa, Ahmed Raza, Mohammed Usman, Chirag Suri, Mohammed Boota, Sultan Ahmed, Zahoor Khan, Junaid Siddique, Waheed Ahmed, Zawar Farid
Part time contracts
Aryan Lakra, Ansh Tandon, Karthik Meiyappan, Rahul Bhatia, Alishan Sharafu, CP Rizwaan, Basil Hameed, Matiullah, Fahad Nawaz, Sanchit Sharma
