The Department for Business, Energy & Industrial Strategy (BEIS) introduced its Energy Prices Bill yesterday (Wednesday October 11), which is designed to support households and businesses with energy costs this winter.
It includes powers to stop the recent volatile and high gas prices dictating the cost of electricity produced by much cheaper renewables.
A new ‘Cost-Plus Revenue Limit’ will be implemented to cap the prices of energy generated by renewables and nuclear which are not volatile by nature.
The new Bill follows a rejection of proposed windfall taxes on oil and gas firms under Liz Truss, who said such taxes would deter investment in North Sea oil production.
Dhara Vyas, Energy UK’s director of advocacy, said the Bill risks “the very investment the UK needs to ensure long-term, sustainable economic growth.
“We look forward to continuing to work with government to ensure that any new mechanism is introduced in a way that encourages investment...
