Energy crisis: Truss backer to clip wings of green firms’ soaring profits as Brits suffer

Under this deal, companies would agree to a set price for electricity over a 15-year period.

If the wholesale electricity costs are lower than the contract price, then the system works as a subsidy, with generators raking in the difference.

However, market prices right now are at record levels, far higher than any contract.

In such situations, the producer pays the Government the difference, and the money is then allocated to energy retailers in the hopes of lowering bills.

According to data from Low Carbon Contracts Company Ltd, as UK power prices more than tripled in the last year, wind farms have paid back more than £360million.

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Article source: https://www.express.co.uk/news/science/1663151/energy-crisis-uk-cap-green-renewable-companies-profits-soar-cheap-electricity-kwarteng