Energy industry risks “death by a thousand cuts”, says RWE boss

Tom Glover has warned that £12 billion of the company’s original £15 billion investment plans by 2030 is now “up for grabs”

Windfall tax and the uncertainty over the UK’s energy policy create the risk of a “death by a thousand cuts” for the energy industry.

That’s the suggestion from Tom Glover, UK Chair of RWE, who said the energy giant’s investment plans were negatively impacted by the lack of clarity on the UK’s tax policy.

Mr Glover noted that nearly £3 billion of the firm’s £15 billion British investment plans have reached a final investment decision – “the remaining £12 billion is up for grabs, if you like”, he added.

Speaking to The Sunday Telegraph, the boss of the company that supplies 15% of UK electricity, explained: “If investments are more uncertain and more risky, either the investment doesn’t happen, or investors charge more.

“If we are stuck with the risk of tax, risk of policy intervention, then clearly when I go for my investment decision, my owners RWE will require a higher return. And if they require a return, ultimately the customers pays.”

This is not the first an energy giant warns about the implications of UK taxes on their future investment plans.

A few months ago, Alistair Phillips-Davies, SSE Chief Executive, said it would review its renewable energy investment after the introduction of a new levy on profits made by electricity generators.

Make sure you check out the latest Net Hero Podcast episode:

Latest Podcast