City Of London
UK Utilities Plunge on Reports Sunak Working on Windfall Tax
- People familiar with the matter say no final decisions taken
- Boris Johnson under pressure to tackle cost-of-living crisis
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UK utility firms sank after it emerged Chancellor of the Exchequer Rishi Sunak has ordered officials to prepare plans for a possible windfall tax on power generators as well as oil and gas firms.
Power plant operator Drax Group Plc tumbled as much as 19%, the most in nearly seven years, while energy suppliers SSE Plc and Centrica Plc both dropped as much as 11%. It also weighed on shares of UK operators listed abroad, including E.ON SE, Electricite de France SA and Iberdrola SA.