Renewable energy generators have hit out at the Government's decision to end their Climate Change Levy (CCL) exemption from next month.
Infinis Energy (LON:INFI) , which has onshore wind and landfill gas businesses, forecast a profit hit of about £7mln in the year to the end of March 2016 and up to £11mln in the following year.
Chief executive Eric Machiels said the move announced in Wednesday's Budget shocked the industry.
It had been under the impression that phase-out of the exemption would not happen until after 2020.
Machiels said: "The announcement of the Government's intention to discontinue the CCL at this time was quite without warning.
"We are disappointed by the several recent changes to the regulatory framework, which will disincentivise long-term investment in the build-out of new energy infrastructure in the UK.
"Infinis generates low-cost, reliable, renewable energy and we now look to the government for regulatory stability." Infinis shares fell 16.5p to 163.5p.
Power station operator Drax (LON:DRX) said yesterday that its pre-tax earnings before interest, depreciation and amortisation were likely to fall by £30mln in 2015.
Chief executive Dorothy Thompson said: "We're surprised and disappointed at this retrospective change to a support regime which has been in place since 2001 specifically to encourage green energy and support renewable investment."
Drax shares fell yesterday but regained their poise today, climbing 16.8p to 271.4p.
But GCP Infrastructure Investments (LON:GCP), whose holdings include renewable energy assets, said cash flows expected to come from those investments would avoid any impact from the move.
Chairman Ian Reeve said: "It is pleasing to see the fundamentally conservative approach of the company in providing debt to such projects leaves the company essentially unaffected by that announcement." GCP's stock drifted 0.3p to 115.1p.
Bluefield Solar Income Fund (LON:BSIF) said levy exemption certificates (LECs) made up 3%-4% of total revenues in its investment portfolio.
"The impact of the loss of LEC revenue will be partially offset by the expected reduction in corporation tax," it said. Bluefield's shares backtracked 2.25p to 105.75p.