(Reporting by Shadia Nasralla and Susanna Twidale Editing by David Goodman, Kirsten Donovan)
Reuters Messaging: shadia.nasralla.reuters.com@reuters.net)) (Adds comment from oil and gas industry body)
LONDON, March 15 (Reuters) - British government measures
to support energy security will be announced later in March, a
budget document said on Wednesday without mention of any fresh
incentives for oil and gas or renewable energy producers.
Oil and gas producers had called for floor prices to be
applied to a windfall tax imposed last year and renewable power
companies wanted better investment incentives, but finance
minister Jeremy Hunt's spring budget included no such actions.
"In addition to the measures in the spring budget, the
government will set out further action later this month to
ensure energy security in the UK and meet our net zero
commitments," the government said in a budget document.
Both the oil and gas and renewables industries will watch
for any updates to how the Energy Profits Levy (EPL) tax applied
to the former and the Electricity Generator Levy (EGL) applied
to the latter might change.
"The Government has repeatedly ignored warnings from the
renewable sector as it bulldozes through its tax raid on green
electricity generators," said Rod Wood, managing director at
wind energy developer Community Wind Power.
"In the face of this draconian cash grab – which simply
makes new investment unviable - there is a real possibility that
the entire UK onshore wind and solar industry shuts up shop and
is forced to move to Europe or United States."
Wednesday's budget included some incentives for nuclear
power and carbon capture and storage projects.
"While we welcome the support for decarbonisation and carbon
capture and storage, the UK risks becoming a hostile environment
for wider investment in domestic offshore energy," said David
Whitehouse, head of the OEUK oil and gas industry association.
"We are disappointed that it has not removed obstacles for
offshore energy firms and the homegrown oil and gas producers."
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