General · 18 April 2026
Rachel Reeves raising tax on low-carbon power producers
UK household energy bills could be limited by a proposed higher windfall tax on electricity generators. Rachel Reeves intends to increase the levy on older low-carbon power plants, with an announcement possibly coming as early as Tuesday. This existing tax, announced in 2022 and effective from 2023, currently applies a 45% rate on electricity sold above £77.94 per megawatt hour (adjusted for inflation from an initial £75/MWh).
Reported by The Guardian · How we write briefs