The UK government has announced to introduce the ‘Cost-Plus Revenue Limit,’ a temporary cap on renewable energy companies’ revenue, to curb the impact of soaring wholesale power prices.
The measure will apply to renewables in England and Wales from the start of 2023 not currently covered by a Contract for Difference (CfD) in order to break the link between “abnormally high gas prices” and how much revenue low-carbon generators receive.
The legislation allows for the revenue cap to implement in Northern Ireland. However, the Department for Business, Energy and Industrial Strategy (BEIS) has yet to decide whether the measure will extend to Scotland.