Energy Prices Bill: Government unveils price cap legislation

Confirms de facto windfall tax

The UK government presented its new Energy Prices Bill to Parliament, confirming sweeping plans to cap energy prices for households and businesses and unveiling controversial proposals to limit the profits being generated by renewables and nuclear operators.

The new Bill promises to provide the legislative underpinning for the government's Energy Price Guarantee and Energy Bill Relief schemes, which will cap energy bills for households, businesses, and the public sector and limit soaring energy costs that were widely expected to cause an economic disaster this winter. The government reiterated that the support package would cap the average household bill at around £2,500 a year, while non-domestic customers will see prices frozen at current levels for at least six months, meaning they will be paying less than half of predicted wholesale cost...