German energy group RWE has warned a UK windfall tax on energy companies could put future investment at risk amid speculation the Treasury could be preparing to target the measure at electricity companies.
RWE UK country chair Tom Glover said that the company plans to invest a further £15bn in UK green energy production by 2030 and has provided over £25m to local communities near its projects.
He continued that any potential windfall tax would need to be “carefully considered” to ensure it did not put future investment at risk or much such future investment more expensive for the consumer.
He added: “RWE is unable to comment on rumours of a potential windfall tax when no details are available, however in principle we would believe that a windfall tax is not the best policy instrument to address the current energy affordability crisis.
“A windfall tax is a short term instrument which does not address the longer-term issues of an energy market which needs significant investment to ensure decarbonisation and security of supply.”
HM Treasury has yet to clarify press reports this week that Chancellor Rishi Sunak is considering imposing a levy on energy companies, or that renewable energy producers could be targeted by such a tax.
A package of measures is widely expected to be unveiled tomorrow aimed at alleviating the cost of living crisis in the UK after energy regulator Ofgem confirmed annual household bills would likely rise by more than 40% in October.