The UK government is working on laws that would impose a revenue cap on renewables generators after reports that talks between the industry and officials failed to find a voluntary strike price for new long term power contracts.
The Financial Times is reporting that Liz Truss’s administration could outline legislation as early as this week to limit profits some operators are making due to historically high electricity market prices, which are being drive by gas shortages.
Industry and officials met during September with a price of £50-60 per megawatt-hour mentioned as a starting point for negotiations, according to the FT.
However, the two sides failed to find an agreement on what would be a voluntary opt-in to long term CfDs for existing generation projects.
Now, government is pressing ahead amid warning from renewables generators that any cap must be similar the EU one introduced recently at €180/MWh.
A meeting between industry representatives and officials is said to be scheduled for today to flesh out the proposals, according to the newspaper.