Green funding ‘threatened by windfall tax’, says SSE boss

Dozens of main buyers are contemplating whether or not to ditch funding for inexperienced UK vitality initiatives due to threats to increase the windfall tax, in keeping with the boss of SSE. 

The Government has pledged to lift round £5billion by way of a one-off levy on oil and fuel corporations whose earnings have soared following spiralling vitality costs. 

Money raised will go in direction of serving to households fighting the price of residing disaster. 

But SSE chief govt Alistair Phillips-Davies warned that Treasury threats to widen the tax to electrical energy producers have made main buyers rethink funding commitments – even to renewable vitality schemes. 

Phillips-Davies mentioned the tax might hamstring efforts to construct the large-scale inexperienced vitality initiatives that may assist wean Britain off fuel imports. He mentioned: ‘We have heard from many clean energy investors recently who are now asking whether the UK remains a good place to deploy capital. 

‘The irony is that the more difficult and expensive we make it to build the big projects we need, the longer the UK will be dependent on expensive imported gas.’ 

Although it earns some income from gas-fired vegetation, SSE shouldn’t be a part of the group that might be focused by the Energy Profits Levy unveiled by Chancellor Rishi Sunak final month. 

But the Government has mentioned it’s consulting with the electrical energy technology sector – which incorporates SSE – as sure corporations have additionally seen ‘extraordinary profits’ as a result of report fuel costs. 

SSE could possibly be focused after it final month reported a 23 per cent rise in full-year earnings to £1.2billion. 

Last week the Perth-based group, which is price £17billion, revealed Phillips-Davies acquired a pay packet price £4.5m in 2021. 

Although the UK is a hub for renewables initiatives, these want massive exterior funding due to their big improvement prices. 

It is that this money that’s most in danger at a key time when many schemes are attempting to get off the bottom. 

SSE plans to take a position £24billion in renewable and vitality transition initiatives this decade. 

Phillips-Davies mentioned the uncertainty across the levy was ‘clearly unhelpful’. 

He sounded the alarm after it emerged Norwegian state oil big Equinor is reportedly reconsidering a £4.5billion North Sea venture.