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UK to Set Out Plans Next Week on Power Generator Windfall Tax

  • Government previously identified excess profits in the sector
  • Tax of 25% on oil and gas profits imposed earlier this year
Power transmission lines hang in Newport, UK

Power transmission lines hang in Newport, UK

Photographer: Chris Ratcliffe/Bloomberg

The UK plans to announce in the coming days whether it will extend a windfall tax to electricity generators -- a difficult task as the government tries to help consumers struggling with inflation while also supporting renewable energy.

Officials have been weighing the levy after identifying excessive profits in the power sector. Earlier this year, the government imposed a 25% tax on the profits of North Sea oil and gas producers.