Wednesday 12 October 2022

The wrong sort of windfall tax

 https://www.reuters.com/business/energy/uk-moves-cap-revenues-low-carbon-energy-producers-2022-10-11/ refers

There is no doubt that the pricing mechanism for electricity needs reform. Indeed, the government launched a consultation earlier this year. 

But today's proposal does virtually nothing for consumers. Instead, it would punish those providers who have done the right thing in avoiding fossil fuels for generating power. It is not going to encourage firms to enter the non-carbon market. It looks very much as if the multinational oil and gas companies who directly or indirectly support the Conservative group currently in power have influenced a policy decision which would shore up their industry.


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