Jonathan Oliver
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THE heads of Britain’s biggest gas and electricity companies have been summoned to Downing Street to be told to hand over part of their multi-billion-pound profits — or face a windfall tax.
The chiefs of the energy giants have been given a dressing down by Gordon Brown’s advisers in No 10, who accused them of profiteering and failing to do enough to alleviate “fuel poverty”, it was reported last night.
The utility bosses have been told that unless they subsidise a scheme aimed at helping the poorest 4.5m households they could face a compulsory levy on their profits.
If they agree to the scheme, it could could be announced as early as part of the budget on March 12.
The series of Downing Street summits reflects the growing frustration by ministers over the way utilities continue to make record profits despite rising global energy prices.
Campaigners claim that energy company profits have soared by £2.5 billion over the past three years.
Last week, the chief executives of Scottish & Southern Energy, the country’s second largest provider, and NPower, the fourth biggest, attended meetings in Whitehall.
They met Yvette Cooper, the chancellor’s deputy at the Treasury; Malcolm Wicks, the energy minister; and Geoffrey Norris, the influential No 10 industrial policy adviser.
Over the coming week, the other major utilities — Centrica, Scottish Power, E.On and EDF Energy, owners of the former London Electricity business — will also be summoned to Downing Street.
Dave Prentis, general secretary of the Unison trade union, said: “Hard-working families are desperately worried about increasing fuel bills. Pensioners are finding it a huge struggle despite winter fuel payments that have been wiped out by these greedy companies.”
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Let's all go foragin' for faggots in the wood eh, master Scott. Must keep the investment portfoilio's going even if a few more die because of it.
Another one who knows the price of everything and the value of nothing!
Peter K Day, Doncaster, UK/ Yorkshire
The government wants people to be more efficient energy users, but doesn't like people paying the true market price of very scarce resources. How are energy companies expected to find new sources of energy without making money on a high demand low supply commodity? As long as the regulatory environment is open enough to new entry, competition is the best control on pricing - the problem is that, at the moment, gas and oil are very expensive to source. Making energy a poorer investment and taking money away from being able to be reinvested in new supply will make it much more difficult in future. Better high prices than blackouts!
Scott Wilson, Norwich,
Forget the windfall tax, resolve the energy issue at its source and force the energy companies to offer genuine lowest energy prices to the poorest consumers.
Social tariffs in the energy market. There is a Petition at:
http://petitions.pm.gov.uk/SocialTariffs/
to the Prime Minister which aims to force the Government to provide legislation to force UKs Energy Companies to provide affordable low cost energy to the poorest consumers.
The Independent Gas and Electricity Consumer Watchdog states the government should have new legislation to support fuel poverty and thereby ââ¬Ëforceââ¬â¢ Energy Companies through Mandatory commitments to provide affordable energy. Government must take the lead and require fair pricing for the poorest consumers.
The Government's aim of eradicating fuel poverty among vulnerable consumers by 2010 has been derailed by the energy price rises of 2003/07. With no real incentive for companies to act voluntarily.
Please support this important Petition.
Carl L Witcombe, Gwent, UK
If Brown wants to crack down on profiteering gas companies, then why doesnât he simply make them cut their prices? This would bring direct and immediate relief to consumers. But instead, he prefers to set up some bogus poor fund over which the Government will have control. Does he seriously believe the public will be fooled by this childish nonsense?
Robert, Hull, UK
Socialist thieves, seeking to curry favour with other peoples money!
Andrew, Wellington, New Zealand
Typical Brown the stealth taxer. Who will be paying for the people subsidised? You've got it it is those paying tax !. Where will the subsidies be going? It will go to Labour constituencies who take up most of the benefits given already by the overburdened taxpayer. This scandal of profiteering is paid by us all & there should be a general reduction for everyone, & not yet another desperate bribery act for Labour strongholds. How much more of taxpayers money is to go to Scotland, Wales , Newcastle Nothern Rock etc. etc. Why don't journalist expose the Labour gerymandering of taxpayers money? This is a purely a Party political solution of a desperate incompetent who steals private pensions, featherbeds public pensions, allows profiteering of non doms who donate to Labour, allows immigration to be out of control on the basis that they are more likely to become Labour voters. The country is being controlled for just 23 per cent of the electorate. We are in total despair of our futures!
Clive Kitchener, Storrington, UK