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UK Plans Higher Windfall Tax on Renewable Energy Profits

4/17/2026

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Summary

Story summary

UK Chancellor Rachel Reeves plans to raise the windfall tax on low-carbon electricity generators to help reduce household energy bills.
The levy would target excess profits from older renewable and nuclear plants as electricity prices rise—from £74/MWh to over £100/MWh—amid the Ukraine conflict.
The government may announce changes soon, including consultations on decoupling electricity costs from gas prices, as prices surge.

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Story summary

UK Chancellor Rachel Reeves plans to raise the windfall tax on low-carbon electricity generators to help reduce household energy bills.
The levy would target excess profits from older renewable and nuclear plants as electricity prices rise—from £74/MWh to over £100/MWh—amid the Ukraine conflict.
The government may announce changes soon, including consultations on decoupling electricity costs from gas prices, as prices surge.