The UK’s Energy Prices Bill has become a law giving extra powers to the new Business Secretary Grant Shapps to limit the profits made by renewable energy generators.

Trade association Energy UK and energy companies had previously raised concerns over the “open-ended ministerial powers” over the industry.

Companies suggest that a cap on profits will potentially hurt long-term investment.

In a letter sent to the Department of Business, Energy and Industrial Strategy, it is stated: “The proposal to grant the Secretary of State powers to be able to widely modify licenses and issue directions in times of an energy crisis has the potential to impact just about everything energy companies do on an indefinite basis.”

Yesterday, Former Business Secretary Jacob Rees-Mogg tweeted: “The Energy Prices Act 2022, which I laid before Parliament earlier this month, received Royal Assent last night from His Majesty the King.

“The Act will help see the country through the winter.”

The Energy Prices Act 2022, which I laid before Parliament earlier this month, received Royal Assent last night from His Majesty the King. The Act will help see the country through the winter.

— Jacob Rees-Mogg (@Jacob_Rees_Mogg) October 26, 2022