News Archive Search
Government 'should take windfall tax' from energy companies
28 July, 2008MPs have argued that the government should be benefiting from a "windfall tax" from energy companies after concerns grew about the competitive nature of the energy market.
MPs have argued that the government should be benefiting from a "windfall tax" from energy companies after concerns grew about the competitive nature of the energy market.
Following EDF Energy's announcement on Friday that it will be putting up gas bills by 22 per cent, and electricity by 17 per cent, MPs argued that there is "compelling rationale" for a windfall tax to benefit the government.
Calls have also been made for the energy watchdog Ofgem to take more hardline action against energy companies that continually raise prices, and should even report some companies to the competition commission.
The report, by the Commons business and enterprise committee, argued that it is the British energy market that is making life so difficult for consumers and that if efficiency issues were not cleared up soon, there would be "serious consequences for millions of households, especially the fuel poor".
The chancellor has already officially backed off from the notion of a windfall tax but trade unions have been pressing for such action this weekend at Labour's policy forum.
However Duncan Sedgwick, chief executive of the Energy Retail Association, said on Sunday: "As the Committee acknowledges, if we are serious about keeping the lights on for future generations then companies need to be given the freedom and opportunity to innovate and invest for our long-term needs."
The long, drawn-out sale of British Energy (BE) to EDF Energy has come to an end after the French energy firm bought BE for £12.5 billion, it has been reported.
Government hopes to have an EDF Energy-British Energy (BE) tie up within two weeks have been dubbed "optimistic" by the British nuclear company, according to a recent report.
Gordon Brown is facing the prospect of a major defeat over the government's reluctance to impose a windfall tax on energy companies, it has been reported.
The City of London has launched a campaign against Gordon Brown in order to convince him that introducing a windfall tax on energy companies should be avoided.
TaylorWimpey has reported phenomenally poor first half results for the year so far, recording a loss of £1.5 billion, it has been announced.