Centrica is seeking a £6m refund from HM Revenue and Customs relating to the energy giant’s Peterborough gas-fired power station, following a legal dispute over business rates.
Centrica, one of the “Big Six” energy providers in the UK, is arguing that the rates have been set too high since 2005.
It says that during this period power plants have not been making a profit. If Centrica’s case, related to the Peterborough plant, is successful then it could see similar refunds for up to seven other gas-fired power stations owned by the group.
Business rates account for the largest slice of costs for gas plant operations and in the UK these stations are struggling to make a profit compared to cheaper, but less environmentally friendly, coal plants.
Centrica Battles HMRC for £6m Power Plant Business Rate Refund