TRIG sees no NAV hit from rise in govt electricity windfall tax

(Sharecast News) - Green energy investor TRIG on Wednesday said it did not expect a hit to net asset value or dividend cover from the UK government's decision to increase windfall tax rates on electricity generators that did not sign up to fixed price contracts. The government on Tuesday said it was hiking the Electricity Generator Levy (EGL) to 55% from 45% 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.

TRIG said its own power price forecast used by in its portfolio valuation at the end of 2025 was below the threshold level in all future periods.

"This is expected to remain the case in the Q1 2026 NAV update," it added. The EGL is calculated based on the average price captured for the year, with the current threshold level £82.61 per megawatt hour.

"The extension of contracts for difference to operational projects is a policy that the managers have been directly engaging with government on and is aligned with TRIG's strategy to secure a high proportion of fixed-price revenues," the company said in a statement.

It added that 75% of projected revenues over the next five years are fixed price per unit generated and currently expected TRIG's operational projects to take part in the proposed contract allocation process in 2027.

"Greater demand for electricity supports the investment case for TRIG's electricity generation assets and battery development pipeline."

Reporting by Frank Prenesti for Sharecast.com

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