Centrica share price: Ministers snub Race Bank wind farm plan

on Dec 5, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Thursday, December 5: Centrica (LON:CAN) yesterday saw its plan to build a £2 billion wind farm off the coast of Norfolk thrown into doubt due to the company being unsatisfied with the level of subsidies that would be guaranteed.

Centrica’s Race Bank project was not among those selected as eligible for increased subsidy contracts which casts fresh doubts over its future. As The Telegraph revealed last month, the project would not go ahead unless planned subsidies were increased. Centrica has said that Race Bank could generate enough electricity for 450,000 households.
In today’s trading, Centrica shares have gained 0.48 percent to 332.89p as of 10:33 UTC.

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The Department of Energy and Climate Change (DECC) said the projects that did qualify had been selected according to criteria which made sure that “they were technically and financially viable, and would contribute to wider industry development”. Among the 16 projects there are three offshore wind farms proposed by Denmark’s Dong Energy.
“We continue to believe that Race Bank is one of the best consented offshore projects in the UK and we will now work with DECC to understand how they reached their decision and we will continue to review all our options for the project,” a Centrica spokesman said, adding the decision was “disappointing news”.

**Centrica to cut energy prices to reflect regulatory changes**
Centrica, which owns British Gas, led four of the UK’s “Big Six” energy suppliers which said earlier this week that they would cut gas and electricity bills after the government pledged to reduce green levies to ease the cost of living. The government will support a £12 rebate for each of the next two years to cover the cost of a levy that supports people who can’t afford to heat their homes, Energy Secretary Ed Davey told MPs on Monday. Changes, which will make it cheaper for suppliers to fulfil an obligation to insulate low-income homes will provide additional savings, he added.

British Gas said in a statement it is cutting household gas and electricity prices from January 1 by an average of 3.2 percent which is “equivalent to £41 on average off the annual dual fuel bill”.
“An additional £12 customer rebate for the Government’s Warm Home Discount (WHD) scheme brings a total annual saving of £53 to the average dual fuel customer,” British Gas said.

SSE (LON:SSE) said its customers will save about £50 from price cuts which the company will introduce before the end of its financial year on March 31, 2014. Scottish Power suggested savings of about £48 would result from the revised rules, and gas and electricity supplier npower said it would cut bills by an unspecified amount.
The four companies have all raised prices for consumers in recent weeks, citing higher energy prices and the cost of government-imposed tariffs. Even taking into account the impact of cutting energy bills by £50 on average as announced by the energy suppliers, the recent increases still leave consumers paying £70 pounds more, Labour’s spokeswoman on energy, Caroline Flint, has said. Energy bills have become a hot political issue after opposition Labour leader Ed Miliband vowed to freeze energy prices if his party wins the 2015 general election.
**As of 11:37 UTC buy Centrica shares at 333.00p**
**As of 11:37 UTC sell Centrica shares at 332.90p**


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