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Calls for energycompanies to fork out half a billion Energy suppliers should be subjected to a £500 million annual charge to combat fuel poverty and cut carbon emissions, council leaders said today.
Responding to the £992 million half-year profits posted by the British Gas parent company Centrica, Cllr Paul Bettision, Chairman of the Local Government Association Environment Board, said:
“Energy companies are making massive profits at the expense of hard working families. If these firms paid the same as householders do through their bills we could insulate 10 million homes, take £2 billion off energy bills and lift 500,000 people out of fuel poverty. The cut in bills would be the equivalent of a penny off the standard rate of income tax and would help people manage rising costs.
“Meeting this country’s ambitious targets to reduce carbon emissions and help households manage rising fuel costs will require ambitious policies. We should sieze the chance to pay for a massive investment drive to insulate people's homes that provides a long term solution to rising fuel costs and cutting carbon emissions,” he continued.
Meanwhile the Commons business and enterprise committee called on Ofgem, the energy regulator, to toughen its approach and to refer key parts of the energy market to a Competition Commission inquiry if necessary.
MPs have also given support to calls for a windfall tax on energy companies, which were estimated by Ofgem to have benefited by £9bn from the free allocation of permits under phase two of the EU’s emissions trading scheme.
Widespread protest
Newspapers, websites and news stations all portrayed a mood of disquiet amongst Britain's public this morning on the news that Centrica, British Gas’ parent company, posted almost £1 billions worth of profit for the first half of this year just one day after announcing huge price rises for their customers.
Customers were told there would be energy price hikes across the board with some people facing an immediate 44 per cent rise in their gas bills. Today, Energywatch, a consumers’ group, said, “prices are going up because £992 million profit in six months isn't enough.” No to windfall tax However Richard Northedge, DOF Online's respected economic commentator said, "given the record profits being announced by oil companies, they are an obvious target. Even Robin Hood worked out that you rob the rich because the poor haven’t got anything worth taking."
He warned against introducing windfall taxes as such taxes, "select particular industries rather than raise money across the board, they are uncertain and they can be malicious – choosing targets for political rather than economic reasons."
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