Shares in UK energy firms slide over windfall tax fears

Shares in some of Britain's biggest power companies fell sharply yesterday over concerns that the UK government will hit electricity generators as well as oil and gas companies with a windfall tax.

Pressure is mounting on ministers to do more to help households offset the soaring cost of living as the UK regulator warned that domestic energy bills were expected to jump more than 40 per cent later this year.

Shares in Drax, owner of the UK's biggest power station, fell 16 per cent, Centrica dropped 10 per cent and SSE fell almost 9 per cent in yesterday after the Financial Times revealed that UK chancellor Rishi Sunak had ordered officials to widen the scope of a potential windfall tax.

The treasury had already been looking at imposing a levy on the profits of North Sea producers, including BP and Shell, which have reported bumper profits. But officials have also been asked to look at expanding the levy to other companies in the energy supply chain as domestic energy bills have soared.

- Copyright The Financial Times Limited 2022