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Future of British Business

UK Plans to Cap Renewables’ Profits Amid Rising Energy Costs

  • Government working on plan to include more clean-energy firms
  • Natural gas is pushing up costs and benefiting renewables
UK Business Secretary Kwasi Kwarteng

UK Business Secretary Kwasi Kwarteng

Photographer: Chris Ratcliffe/Bloomberg
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The UK government plans to offer fixed-price contracts to existing renewable-energy producers as a way to blunt the impact of soaring power costs on households this winter, according to people familiar with the discussions.

Business Secretary Kwasi Kwarteng is working to extend so-called contracts for difference to generators to replace more lucrative subsidies in an attempt to cap profits and avoid imposing a windfall tax, said the people, who asked not to be identified because the discussions are private.