© Reuters RWE UK investments up in air over windfall tax and lack of strategy
Proactive Investors – UK boss Tom Glover has warned that the energy company’s investments have been put in doubt as a result of the windfall tax on renewable generators and a lack of strategy.
German group RWE , which is the second largest generator in the UK supplying around 15% of the country’s needs, had earmarked £15bn to expand its British operations by 2030, but Glover suggested £12bn of this could still be taken elsewhere.
Investments in the US and Asia look “more attractive,” Glover told the Telegraph, given a seeming rise in the constant threat of policy and tax interventions in the UK.
Some £3bn of the £15bn has reached a final investment decision, Glover said, adding “the remaining £12bn is up for grabs, if you like.
“So, when we say it’s allocated in our business plans, it can be reallocated at any point in time.”
RWE, which is based in Germany, operates a mix of gas, biomass and hydro plants, as well as onshore and offshore wind farms, holding around 7GW of capacity, or enough to power 10mln homes.
Its concerns come after the government introduced an electricity generator levy at the start of this year, seeing generators charged 45% on ‘exceptional receipts’ where energy is sold above £75/MWh.
“If we are stuck with the risk of tax, risk of policy intervention, then clearly […] my owners RWE will require a higher return. And if they require a return, ultimately the customer pays,” Glover added.