Energy News

Energy companies fight back

Wednesday 5 March, 2008

Last night UK energy companies stood up to the Government’s plan to potentially tax profits.

Companies are fighting against a tax by claiming it would reduce the ability to contribute to green power projects and the combat of global warming.

A spokesman for British Gas (www.britishgas.co.uk) commented: "While all these technologies are low or virtually zero-carbon, they are also very expensive, costing around three times as much as traditional gas-fired power generation."

British Gas’ parent company Centrica announced a £571million profit for 2007 shortly after raising tariffs for all energy and gas customers. The 2007 numbers are five times more than 2006 profits.

An angry response from consumers over huge profits and a 15% raise in tariffs led to the idea of a windfall tax.

Friends of the Earth have called for a tax to pay for a £5billion climate change super-fund.

Chris Eagle, commercial manager for EnergyChoices.co.uk says:

“It’s not a surprise that large energy companies are fighting a potential windfall tax. They don’t want to have to pay out money and investments in earth friend energy can be expensive. On the other hand, there should be some sort of compromise to help customers deal with the high prices of tariffs and the recent 15% rise in cost passed on to the consumer. This is difficult to swallow when companies report half a billion in profits.”

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