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(Sharecast News) - Bluefield Solar Income Fund said it expected a small reduction in net asset value as a result of the UK government decision to axe the Carbon Price Support (CPS) levy from 2028.
BSIF said it expected NAV to fall by around 1p. The CPS is a tax on fossil fuels used in electricity generation, introduced in 2013 to strengthen the carbon price for electricity generation above the price provided by the Emissions Trading Scheme (ETS).
"With the UK's last coal plant having closed in 2024, CPS is deemed to have achieved its ambition of driving fossil-fuel generators off the grid. Alongside this, the ETS has matured, with a tighter cap to drive the signal for electricity generators to decarbonise," BSIF said in a statement.
It added that the increase in the Electricity Generator Levy to 55% from 45% would have a minimal impact on its NAV and described the overall policy changes as "neutral to positive".
The government on Tuesday said it was hiking the EEGL in an attempt in an effort to speed up the delinking of gas and electricity prices to stabilise costs for consumers in the event of an energy shock such as the war on Iran.
Reporting by Frank Prenesti for Sharecast.com
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