Windfall tax speculation causes concern among UK power producers
Wind farm in UK. Author: JAK SIE MASZ. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.
May 25 (Renewables Now) - A media report about the possibility of Britain introducing a windfall tax on local electricity generators has affected the share trading of sector players, with one particular renewables firm deciding to extend the timetable for a share placing to allow investors to consider the matter.
On Monday, the Financial Times (FT) reported that chancellor Rishi Sunak had ordered treasury officials to work on a possible windfall tax on over GBP 10 billion (USD 12.5bn/EUR 11.7bn) of excess profits by power producers in a drive to address soaring energy bills. The measure will go beyond North Sea oil and gas producers and will impact even wind farm operators, according to the report.
The FT said that an official announcement could be made this week or in early June.
The news report had an immediate impact on the likes of SSE Plc (LON:SSE), Drax Group Plc (LON:DRX) and Centrica Plc (LON:CNA), the shares of which dropped on Tuesday.
At the same time, Bluefield Solar Income Fund Ltd (LON:BSIF), which invests in solar, wind and energy storage, said it is revising the timetable for a planned share placing, setting May 31 as the deadline for commitments. The initial deadline was May 25, 2022.
“Given the timing of this press speculation relative to the originally planned closing date and despite considerable indications of interest received for the Issue, the Company has decided it would be appropriate to extend the timetable to allow investors to consider the topics raised by the press speculation,” the fund said in a regulatory filing.
Bluefield Solar is looking to raise money to pay down its revolving credit facility.