Jun 7, 2022
British Gas owner Centrica warns windfall tax will hit investor confidence
British Gas owner Centrica will not launch a legal challenge against the UK chancellor's windfall tax but warned the levy would damage investor confidence. Scott Wheway, Centrica's chair, was asked by shareholders at the company's annual general meeting in Leicester if he would challenge the decision by the UK government to impose a 25 per cent tax on North Sea oil and gas. He warned the windfall tax and any move by the Treasury to extend it to energy generators could cause damage to investment in the UK. Centrica is Britain's biggest energy retailer to households, but also has a sizeable North Sea oil and gas production arm and owns a 20 per cent stake in the UK's existing nuclear power plants. UK chancellor Rishi Sunak has announced a 25 per cent "Energy profits levy" that will increase the rate paid by North Sea producers from 40 per cent to 65 per cent, raising £5bn this year to help UK households cope with rising domestic fuel bills. Other companies including Shell and EnQuest have also hit out at the windfall tax, which could stay in place until 2025.
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