Wind firm to take UK Govt to court over ‘smash and grab raid’ on electricity generators

A major investor in UK wind energy plans to take the government to court over its “smash and grab raid” on renewables generators.

Wind

A major investor in UK wind energy plans to take the government to court over its “smash and grab raid” on renewables generators.

Community Windpower has told ministers it will sue in an effort to block the new electricity generator levy (EGL), due to come into force on January 1.

Announced as part of Chancellor Jeremy Hunt’s autumn budget, the green energy windfall tax imposes a temporary 45% levy on “extraordinary profits”.

When taken with corporation tax, the EGL brings the headline rate on earnings for renewables firms to 70%.

It will not apply to developments that are covered by a contract for difference (CFD) – those that have such a deal tend to be newer schemes.

As such there have been claims the EGL penalises older, trailblazing schemes, and there are fears it is also putting off green energy investors.

Lawyers brought in

In a bid to block the policy, Community Windpower – a £2 billion investor in over 1.5 gigawatts (GW) of UK onshore wind energy – has mobilised a team of legal professionals.