(Reuters) - Chancellor Philip Hammond on Wednesday published the country’s annual budget. Below is an outline of the main policies impacting the energy sector:
Britain will introduce, from next November, tax changes to oil and gas companies operating in the North Sea which will enable a transfer of tax history for oil and gas fields in the region between buyers and sellers.
This will allow buyers to benefit from larger tax relief when fields reach the end of their life and require dismantling, known as decommissioning.
The government offered little clarity on the future of the country’s tax on carbon dioxide (CO2) emissions from the power sector.
The levy is set at 18 pounds per tonne and is paid for by British power generators on top of their obligations under Europe’s Emissions Trading System, which forces companies to surrender one carbon permit for every tonne of CO2 they emit.
The government said it is confident the carbon price paid is set at the right level “and will continue to target a similar total carbon price until unabated coal is no longer used”.
Britain plans to phase out coal-fired power plants by 2025 unless they have technology to capture and store CO2 emissions.
To help keep energy costs down, the government said there would be no fresh funding for renewable energy projects, such as wind and solar, levied through electricity bills, until 2025 on top of the 557 million pounds it has already pledged.
Reporting by Susanna Twidale; Editing by Dale Hudson