Britain may limit the income of producers of renewable energy

MOSCOW, 11 Oct — PRIME. The UK government plans to introduce restrictions on the income of renewable energy companies in order to reduce the impact of increased energy prices on residents of the country, Bloomberg reports, citing people familiar with the situation.

According to the agency, representatives of the British Ministry of Business, Energy and Industrial Strategy held talks with the largest suppliers of renewable energy on Monday evening. The agency declined to provide details, saying the government would continue to protect households from rising energy prices.

It is noted that the negotiations in Britain are built according to the scheme of the mechanism that was proposed to be introduced in the EU to establish a temporary income limit for companies that produce electricity at low costs.

The British government has reportedly already been in talks with industry over the coming winter amid the anticipated energy crisis. Then it was about the supply of electricity by “green” producers at fixed, not market prices. However, the talks fell through amid fears that prices for most electricity are already insured before the end of the year.

The West has stepped up sanctions pressure on Russia because of Ukraine. The disruption of supply chains has driven up fuel and food prices in Europe and the US. In the UK, the rising cost of living has hit millions of households. The country’s energy bills have risen significantly. Against this background, British Prime Minister Liz Truss was forced to announce a freeze on energy bills from October 1 for the next two years, so that the average annual bill for gas and electricity does not exceed 2.5 thousand pounds sterling.

British media have previously reported that Truss’ intention to freeze residents’ energy prices could cost the country around £130bn ($150bn) over a year and a half. This comes as British energy regulator Ofgem announced in August that it would raise the maximum allowable annual electricity bill for consumers to £3,549 effective October 1, more than £1,000 more than the price cap proposed by Truss.