Unintended impact of UK windfall tax: RWE would reconsider investments

RWE is warning against a windfall tax that the UK government is considering imposing on electricity producers as well. According to CEO Markus Krebber, there is a risk that his company will reconsider its EUR 15 billion investment in renewables.

High energy prices, particularly for electricity and natural gas, have affected European households and industry since the second half of last year. By contrast, the current market environment has a fundamentally positive impact on electricity producers, which is why they are drawing the attention of European governments.

The development of gross margins best illustrates the growing profits of coal- and natural gas-fired electricity generators. While for many years they generally stood at positive or negative single-digit EUR figures, since the start of 2022 they have climbed to positive figures in the tens of euros.

Yes, the Parliament vote on #EUETS reform this week is important, but there are other things going on as well. While EUA prices are wallowing, the clean spreads are roofing. #OCTTpic.twitter.com/ssa9fbFdU9