The publication reported that energy firms fear a windfall tax in view of public opposition to the moves to increase residential utility bills by a maximum of 15%.
In response, British Gas said that it was important for companies in the UK to have a stable and predictable investment climate to fund the capital-intensive renewable power projects.
The Guardian noted Drax, owner of the UK’s largest coal-fired power facility, as saying that a surprise or shock tax is destabilizing for the industry when making long-term investments.
The previous time such a tax was imposed on North Sea oil and gas operators in 2005 resulted in short-term gains to the Treasury but ultimately led to decreased tax revenues on the back of a fall in drilling operations, reports the Guardian.
