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UK Plans to Stop Taxpayer-Funded Wind Farms From Gaming the System

  • Producers delay fixed contracts with government as prices soar
  • Treasury studies options after backing away from windfall tax
Offshore wind turbines near Great Yarmouth, UK.

Offshore wind turbines near Great Yarmouth, UK.

Photographer: Chris Ratcliffe/Bloomberg

The UK is looking to close a loophole that allows taxpayer-supported wind farms to take advantage of surging market prices when selling power to the grid.

The government plans to stop wind generators from delaying the start of their fixed-price contracts as prices rise, according to people familiar with the matter. That delay means they can charge market prices for electricity and then keep the profits instead of repaying the Treasury. It’s part of a broader effort in the UK to figure out how to stifle the impact of soaring electricity prices on British consumers. A consultation will be launched this summer.