Carbon Floor Price
Wind farm owners across Britain will earn tens of millions of pounds less than expected because of plans by the Government to freeze the carbon tax. Solar farm, biomass and nuclear plant owners will also see future earnings cut by the change, widely expected to be announced in the Budget later this month. The carbon tax was announced in the 2011 Budget and came into effect last year, with the aim of encouraging new green power plants. It sets a “floor” for the price of burning carbon each year. The tax has the effect of pushing up the wholesale market price for electricity — increasing profits for renewable and nuclear generators who do not have to pay it.