Wind developers paid \u00a3875m in option fees last year to secure areas of the seabed from the crown estate, which is considered the legal owner of the ocean floor around England, Wales and Northern Ireland.<\/p>\n
The windfall marks the third year in which the property manager \u2013 which partly funds the monarchy \u2013 was able to capitalise on Britain\u2019s booming offshore wind industry after introducing an auction for windfarm developers<\/a> hoping to lay claim to a seabed lease.<\/p>\n The income from the wind industry fell by \u00a3198m from the year before as two offshore windfarms began construction, allowing the developers to pay a lower rate to the crown estate. Once the windfarms begin generating low-carbon electricity the developers will be required to pay the crown estate 2% of the revenue they collect from energy bills.<\/p>\n Investor appetite for UK offshore windfarms, which earn guaranteed rates from energy consumers, has helped transformed the financial fate of the crown estate, which also includes a portfolio of London<\/a> properties and rural real estate.<\/p>\n The crown estate returned \u00a3487m to the Treasury, of which \u00a3132.1m was paid to the king to support the official duties of the royal family. Photograph: Yui Mok\/PA<\/p>\n A portion of the crown estate\u2019s earnings are returned to the Treasury, which uses the funds for public spending and also pays a percentage to the monarch. The property manager returned \u00a3487m to the Treasury in the last financial year, of which \u00a3132.1m was paid to the king to support the official duties of the royal family, up from \u00a386.3m the year before.<\/p>\n The crown estate also plans to increase the annual pay packet of its chief executive, Dan Labbad, by almost 20%, the fourth consecutive hike<\/a>. Labbad will take home almost \u00a32.33m for the last financial year, up from almost \u00a31.95m the year before, and more than four times the \u00a3517,000 he received in 2019 when he stepped into the role.<\/p>\n Dan Labbad\u2019s pay packet rose by almost 20% to almost \u00a32.33m in the last financial year, the fourth consecutive increase. Photograph: Bloomberg\/Getty Images<\/p>\n He expects the crown estate\u2019s profits to normalise in the years ahead as more windfarm developers move forward with construction and become eligible to pay a lower rate to the property company.<\/p>\n
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