UK Government Could Face Lawsuit If It Implements A Windfall Tax On Renewables 

Posted: December 29, 2022 by oldbrew in Energy, government, Legal, net zero
Tags: ,

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Looks a tad optimistic. Nobody forced wind farm developers to bump up their prices to match the massive increases in gas and electricity charges. Invoking ‘net zero’ seems a bit of a cheek when they’re blatantly chasing maximum profits.
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A Cheshire wind farm developer has threatened to sue the UK government over its plans to impose a ‘windfall tax’ on renewables companies, reports

Community Windpower – which owns 1.5 GW of UK wind generation capacity – has said it will take legal action to block the UK’s Electricity Generator Levy.

The temporary tax imposes a 45 percent levy on “exceptional receipts” of more than £10m generated by selling wholesale electricity at average prices exceeding £75 per MWh.

Community Windpower has instructed London law firm Mishcon de Reya in its bid to block the new levy by way of judicial review.

Mishcon de Reya has written to the UK government, warning them they will take legal action if they push forwards with the levy, on the basis that the new tax contravenes the government’s own Net Zero strategy.

Mishcon partner Alexander Rhodes said: “The way this levy has been designed is completely at odds with the Government’s own stated objectives to transition the UK to a net zero economy and develop a secure supply of clean energy.”

“This levy cuts across those ambitions, contrary to the Government’s own legislated goals and legal responsibilities,” Rhodes said.

The new levy on electricity producers is set to come into force on 1st January 2023, after first being announced in the Autumn statement, and remain in place until 31st March 2028.

Full report here.
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Related: ExxonMobil seeks to block EU tax on windfall energy profits

  1. saighdear says:

    …. and, ehh, err, emm, …. when I have a really good harvest from the same inputs, nobody bats an eye. what’s sauce for the goose is sauce for the gander. and when I have a bad year, unless I am a MEMBER of some club, nobody is bothered, and I get no handout. But my business does not get a payrise based on the PRICE of the neighbour’s sales. TAX TAX TAX. and then throw it away at …..ehh, err, emm. What a year!

  2. SasjaL says:

    “Net Zero” … Something most people will discover in their wallets and bank accounts, if this continues …

  3. ivan says:

    The easiest way would be to cut or completely remove the subsidies for the wind farms and solar arrays.

  4. hunterson7 says:

    Imagine a climate tyrant being questioned or challenged. How dare you mere plebes want relief from the climate imperialists. Freezing to death, much less going broke, is a privilege if it helps the climatocracy save the world.
    Happy New Year, Tallbloke!
    Thank you for all you do.

  5. Stephen Richards says:

    Best solution is a free, open unsubsidised market.

    Let ruinables survive on their merit afterall they claim they are cheap.

  6. Phoenix44 says:

    “Community Windpower”. What their problem, if they are for the community? But the company is pretty opaque. Very difficult to find out who owns it and what qualifications the people who run it have. Very unclear who they really are.

    As for the lawsuit, not chance of winning it. Windfall taxes cannot possibly prevent Net Zero. It’s an empty threat.

  7. Eric says:

    Reblogged this on Calculus of Decay .

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