Gas tax break confirmed as Drax feels pinch

Gas producers in the UK are set to receive a £500m tax break, after a government treasury decision, affirming commitment to gas production.

After strong lobbying the government announced that it will exempt the first £500m of income from new shallow gas fields in UK waters from the supplementary 32 per cent tax rate.

While the wind power subsidy cut remains a well documented 10 per cent, there was a continuing fall out from the government’s midweek announcement.

Shares in Drax Group, which has been planning to transfer its flagship power station from coal-fuelled to biomass, fell 16 per cent as traders felt the proposed green energy subsidies were not as generous as expected.

For more gas powered generation news




Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...