New business

New business secretary has power to cap renewables revenue

Image: Ceri Breeze/Shutterstock

Britain’s Energy Pricing Bill has become legislation giving new Business Secretary Grant Shapps additional powers to limit the profits made by renewable energy producers.

Trade association Energy UK and energy companies had previously raised concerns about ‘open-ended ministerial powers’ over the industry.

Firms suggest that a cap on profits could hurt long-term investments.

In a letter sent to the Department of Business, Energy and Industrial Strategy, it is stated: “The proposal to grant the Secretary of State powers to broadly modify licenses and issue instructions during energy crisis has the potential to impact just about anything energy companies do on an indefinite basis.

Yesterday former Business Secretary Jacob Rees-Mogg tweeted: ‘The Energy Prices Act 2022, which I tabled in Parliament earlier this month, received Royal Assent last night from Her Majesty the king.

“The law will help to see the country during the winter.”

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