Shares of British power firms drop

Shares in British power companies fell today as news broke that Rishi Sunak had ordered plans for a potential windfall tax to be put up.

According to the Financial Times, it would be a tax on the corporations’ excess profits of more than £10 billion.

According to the newspaper, Sunak is mulling a windfall tax in order to help people cope with rising energy costs, with the price cap set to reach £2,800 in October.

This morning, shares of British electricity providers Drax, Centrica, and SSE were down 9 percent to 18 percent.

They were the poorest performers on the STOXX Europe 600 and are on course for their worst day since the outbreak began.

According to authorities reported by the Financial Times, Mr. Sunak and Boris Johnson are working on a plan to address rising energy prices.

“So far, the discussion by politicians have been exclusively focused on the oil and gas sector, but we believe the risk of this spilling over into the power sector is also rising,” Citigroup said on Tuesday.