Cap on renewable energy price is risky, firms say
The government is set to cap the price of electricity from older renewable and nuclear facilities as early as this week, the BBC understands.
In years gone by, electricity produced by gas had been the cheapest - but this is no longer the case. If you cap the price - then profits, prices and therefore inflation comes down. The latter is a key attraction to the government, which has £500bn of debt. Some energy bosses said they would actually prefer a windfall tax - with one mentioning he would be happy to pay tax at 25% rather than the current 19% and pointed out that the oil and gas companies are able to reduce their tax burden by 91% for every pound they invested.
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