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HIGHLIGHTS
- Amid the cost-of-living crisis, PM Boris Johnson has defended the imposition of green levies.
- These additional charges used to fund renewable energy projects, reportedly add £153 to the average energy bill.
Rising inflation in the UK has pushed the prices of food and energy to unprecedented levels, denting people's pockets. Energy prices have risen by £700 per household on an average. Around 33% of Britons are now buying less, cutting expenses, and using their savings to offset the cost of living, as per a survey by KPMG. Experts have warned the damage could exacerbate further as the Russia-Ukraine conflict, the key reason behind the sky-high fuel prices, doesn't seem to end anytime soon.
In such a situation, there were expectations that the government may ditch the green levies in order to bring down the energy bills. These additional charges used to fund renewable energy projects, reportedly add £153 to the average energy bill. However, PM Boris Johnson has defended the imposition of the levies, claiming that there is a lot of prejudice against the green agenda.
Stressing that he wants to take all the possible steps to 'alleviate the cost of living', Johnson has insisted that green technology and green sustainable electricity can actually help to reduce bills.
2022 Kalkine Media®
Image: Around 33% of Britons are now buying less, cutting expenses, and using their savings to offset the cost of living
Let us have a look at some renewable energy stocks and how they reacted to the news.
1. Greencoat Renewables Plc (LON: GRP)
Greencoat Renewables is an Irish firm that invests in wind farms and renewable energy infrastructure. The FTSE AIM 100 Index-listed company currently has a market capitalisation of £1096.96 million as of 22 April 2022. In the last one year, the company has given a negative return of 4.15% to its shareholders, while its year-to-date return stands at 3.12%. Greencoat Renewables Plc’s shares were trading at EUR 1.18 at 8:14 am GMT+1 on 22 April 2022.
2. SSE Plc (LON: SSE)
SSE Plc is a multinational energy company operating in the UK and Ireland and engaged in generating both renewable and non-renewable electricity. The company recently signed a deal with Spanish-German firm Siemens Gamesa Renewable Energy to buy its renewable energy development platform in Europe for €580 million (£484 million).
The FTSE 100 constituent has a current market cap of £19,367.39 million. Its share value has appreciated by 24.37% over the last one year, while the year-to-date return stands at 11.23% as of 22 April 2022. The company’s shares were trading at GBX 1,823.50, up by 0.52% at 8:16 AM (GMT+1), as of 22 April 2022.
2022 Kalkine Media®
3. The Renewable Infrastructure Group (LON: TRIG)
The Renewable Infrastructure Group is a British investment trust that primarily invests in renewable energy assets, with a focus on solar PV parks and onshore wind farms. In March, the FTSE 250-listed company announced that it had raised £277.3 million through a PrimaryBid offer.
The company has given a return of 8.71% to its shareholders in the last one year and its year-to-date return stands at 0.30% as of 22 April 2022. Its shares were trading at GBX 135.00, up by 0.15%, at 8:16 am GMT+1, with a market capitalization of £3,342.98 million on Friday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
