Energy companies, including Octopus Energy and FTSE 100-listed generator SSE PLC (LSE:SSE), have been sent a letter from Reform, the political party led by Nigel Farage, warning them of "political risk" of applying for subsidies in the upcoming offshore wind auction.
The letter set out Reform's plan to scrap subsidies for clean energy if it ever gains power at a national level, claiming "there is no public mandate for the real-world consequences" of the net zero agenda.
Reform's energy spokesman, Richard Tice, said he was giving "formal notice" to any companies seeking a guaranteed fixed price for their future wind generation in the upcoming AR7 contracts for difference (CFD) auction would "do so at your own risk".
That's because Reform plans to "seek to strike down all contracts" if it gained power in the next election.
He added that participation in the upcoming CfD auction "carries significant political, financial and regulatory risk" for company shareholders.
In response, James Alexander, the chief executive of the UK Sustainable Investment and Finance Association, said: “This letter risks putting politics before prosperity by issuing threats to developers in one of the UK’s fastest-growing industries.
“Investors wholeheartedly recognise these long-term investment opportunities. It is a great shame that some politicians would rather attack the sector instead of seizing the huge potential that it offers.”
A government spokesperson said: "Reform are now actively trying to discourage businesses from investing in clean energy in the UK - leaving bills higher for families, threatening hundreds of thousands of good jobs across the country and putting our energy security at risk."
Renewable UK, the industry association for the wind and solar sector, recently calculated that close to 40,000 jobs are involved in the offshore wind industry, up from 32,000 two years ago.
The number of jobs is expected to grow to 74,000-95,000 if the UK wants to achive Labour's plans to quadruple offshore wind production by the end of the decade.
Greenpeace spokesperson Mel Evans said: "Having Richard Tice leading on energy policy is about as sensible as having a tobacco company run the NHS.
"Reform is a party funded by fossil fuel interests, and this statement is nothing but a transparent political stunt straight out of Trump’s playbook.
"This would increase costs to British people by sabotaging green investment, keeping us hooked on gas which will stop us from being able to lower our bills, all while destroying future-proofed job opportunities for young people. And it would threaten our energy security, too."
Jess Ralston, analyst at the Energy and Climate Intelligence Unit (ECIU), said the letter appeared designed to "put good, well-paid British jobs in jeopardy, driving away investment in the economy and denying people the opportunity to make a living".
Market research has shown there is public support for clean energy, she said, adding that Reform arguing against British renewables was essentially arguing in favour of more foreign gas from abroad, "as the North Sea continues its inevitable decline - a geological fact".
Natural gas has cost the UK around £140 billion over the last few years and is set to remain more expensive than pre-crisis levels in the long term, Ralston said, explaining why building more renewables "means energy security and shielding households from volatile international gas markets".