The Electricity Generator Levy has been set at 45% of profit above a power price of £75/MWh. While slightly higher than some expectations, when we update for higher current prices, the overall impact on our valuation is negligible. The long-term impact is also minimal in our view and the removal of uncertainty over the extent of the taxation is beneficial. Drax remains essential to the decarbonisation of the UK power industry as the main viable route to negative emissions at scale.
18 Nov 2022
Drax Group - Known Unknown Now A Known
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Drax Group - Known Unknown Now A Known
Drax Group plc (DRX:LON) | 500 0 0.0% | Mkt Cap: 1,924m
- Published:
18 Nov 2022 -
Author:
Adam Forsyth -
Pages:
7
The Electricity Generator Levy has been set at 45% of profit above a power price of £75/MWh. While slightly higher than some expectations, when we update for higher current prices, the overall impact on our valuation is negligible. The long-term impact is also minimal in our view and the removal of uncertainty over the extent of the taxation is beneficial. Drax remains essential to the decarbonisation of the UK power industry as the main viable route to negative emissions at scale.