Small-cap oil and gas companies which operate in the North Sea have tumbled after the Labour Party confirmed its plans to create a publicly-owned clean energy business funded through windfall taxes.
As well as creating Great British Energy, Labour has promised to not award any new licences to oil and gas firms in a bid to "ensure a phased and responsible transition in the North Sea”.
As a result, shares in Serica Energy PLC (AIM:SQZ) dropped 9.5%, Deltic Energy PLC (AIM:DELT) fell 18%, Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) tumbled 19.5% and Ithaca Energy PLC (LSE:ITH) slipped 3%.
Cleantech companies also traded lower at the prospect of new competition, with the likes of Inspirit Energy Holdings PLC (LSE:INSP) losing a quarter of its market capitalisation.
Keir Starmer talking on the topic today said: "We want the oil and gas companies to pay fair tax on the massive profits that they’re making."
Shell and BP both held flat in reaction.