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Greencoat UK Wind PLC’s investment manager on Wednesday said changes to the renewables obligation scheme will drive up consumer costs and bring about uncertainty for investors. Schroders Greencoat LLP is the investment manager of Greencoat UK Wind, a London-based investment company focused on acquiring and managing wind farms operating in the UK. Schroders Greencoat claimed the renewables obligation scheme proposals will not reduce consumer bills as intended, instead it will increase consumer costs by widening the capital needed to finance new infrastructure. This comes in response of the UK government’s consultation on potential changes to the inflation indexation in the renewables obligation scheme. It warned the changes endanger the UK’s ‘reputation for predictability, stability and reliability’ and that the consultation’s duration is insufficient, creating uncertainty among investors. The consultation has led to two possible options. The first is to switch the indexation on the renewables obligation buy-out price from the retail price index to the consumer price index from March 2026. The second option from the consultation is to freeze the current renewables obligation buy-out price until CPI catches up with RPI. After this, CPI would apply. The government estimates that the catch-up would occur around 2034 to 2035, and so the renewables obligation buy-out price would remain frozen until then. Greencoat UK Wind and its investment manager warned neither option should be pursued. ‘These types of interventions risk the achievability of the government’s clean power mission and wider infrastructure investment targets,’ Schroders Greencoat said in the response. Shares in Greencoat UK Wind rose 1.3% to 98.78 pence on Wednesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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