John Major,windfall tax (of sorts) on power companies.

[beorhthelm]

Did he not say he'd review in the next year ? I may have misheard, but if so, not exactly "now", and doesn't help anyone with this price rise.

fair enough, going by reports. still more immediate than a "if im elected" policy, and could potentially see a reduction in prices.

 

[seagullsovergrimsby]

The problem with a windfall tax is that the public will remain ripped-off, the money will go into the Government coffers instead of to the power companies.
The way to make energy affordable to the public is to reduce prices and the way to do that is what others have said - scrap the un-affordable green taxes or move them to general taxation.

A £4BN windfall tax should be set aside to cover the payout of winter fuel allowance for 2 years. The green taxes should either be scrapped in entirety or reduced to the bare minimum.

 

[Leekbrookgull]

Would this work,what if you were to put a green tax on their profits ? So instead of Joe Public footing the green tariff on their domestic bill the utilities paid for it ?

 

[beorhthelm]

Would this work,what if you were to put a green tax on their profits ? So instead of Joe Public footing the green tariff on their domestic bill the utilities paid for it ?

firstly all company taxes are passed on, they'd just raise thier prices to recover the margin. the consumer always pays all taxes in the end. (thats why many economists dislike company taxation, seeing it as an unnecessary administration that increases costs). secondly, one intended purpose of the green taxes is to reduce consumption: increase the price so that the consumer uses less power. thats why you'll soon be paying for the privilege of a smart meter so that you can see your usage and reduce it (for about 6mth to a year before rising again, according to studies where they are already in use)

 

[Leekbrookgull]

Fair reply,but is there a way of 'pinning down' there profits ?

 

[yxee]

Rubbish - the big six negociate their prices with the "generators" every 18-24 months ( according to an EON Director ). So you're really telling me that all the big six complete these negotiations at almost exactly the same time and always just before winter ? No - they follow each other and THAT is a cartel. It's a rip off and I find it bizarre that anyone can support the energy companies ( who's profits have increased by nearly 400% in the last ten years ). They are as bad as bankers.

Are you saying "rubbish" to me or Ofgen?

What is 400%, give me the numbers... because a profit of 5% of your net worth seems entirely reasonable.

The price makers are the ones that are blamed, rather than decades of incompetent government administration of the nation's power generation infrastructure. If we did what France did 20 years ago we'd be laughing, rather than instinctively blaming the person who happens to give us the bill.

 

[seagullsovergrimsby]

firstly all company taxes are passed on, they'd just raise thier prices to recover the margin. the consumer always pays all taxes in the end. (thats why many economists dislike company taxation, seeing it as an unnecessary administration that increases costs). secondly, one intended purpose of the green taxes is to reduce consumption: increase the price so that the consumer uses less power. thats why you'll soon be paying for the privilege of a smart meter so that you can see your usage and reduce it (for about 6mth to a year before rising again, according to studies where they are already in use)

I thought the concept of installing smart meters was to eliminate the need for the utility companies to physically read the meters as they auto report the reading. Weren't the installation costs supposed to be absorbed by the companies over a period of years and clawed back instead of one big hit (ie slap on an extra £60 to bills along with a percentage increase)

 

[beorhthelm]

I thought the concept of installing smart meters was to eliminate the need for the utility companies to physically read the meters as they auto report the reading.

thats one business case, but not why they were being mandated by government. oh and they can control your power too, turning off by remote control (of course, this is secure and will never be hacked...). i think the compulsion has been binned but they are certainly going to push it hard as part of carbon reduction. where they have been deployed, its been found people reduce usage but then it creeps back up to previous level. most people already tend to be sensible about their power use, turn off lights, TVs etc or dont care about the cost.