Crown estate reports £1.2bn profit for third straight year

The crown estate reported £1.2 billion in profit for the last financial year, almost three times the amount recorded three years ago. Two-thirds of the total came from the offshore wind sector. Wind developers paid £875 million in option fees to secure areas of the seabed, which the estate is considered the legal owner of around England, Wales and Northern Ireland.

Revenue shift Income from the wind industry fell by £198 million from the previous year as two offshore windfarms began construction, moving developers to a lower payment rate. Once the projects generate electricity, developers will pay the estate 2 percent of revenue collected from energy bills.

A portion of the estate’s earnings returns to the Treasury for public spending, with a share also allocated to support official royal duties. The estate returned £487 million to the Treasury last year, of which £132.1 million supported those duties, up from £86.3 million the prior year.

Executive pay The estate plans to raise the annual pay of its chief executive by almost 20 percent for the fourth consecutive year. The executive will receive almost £2.33 million for the last financial year, up from almost £1.95 million the year before.

The chief executive said profits are expected to normalize as more windfarm developers move into construction and pay lower rates. The executive added that even under a government that ends renewable subsidies, the estate could pursue direct energy supply deals between developers and buyers to maintain revenue.