Energy firms tell Treasury: don’t bring in windfall tax
Energy companies last night launched a pre-emptive strike on the government ahead of next week’s budget, warning that any windfall tax on the industry would undermine investment in green power projects and other measures to combat climate change.
The companies fear ministers are considering a windfall tax on the industry after a public outcry greeted moves to raise household bills by as much as 15% in recent weeks.
British Gas, whose Centrica parent group is behind a number of wind farm and other renewable schemes, said it was vital companies had a “stable, predictable investment climate” in Britain if they were to deliver the billions of pounds of funding needed for green power generation.
Drax, the owner of the country’s biggest single coal-fired power station, also issued a clear warning to ministers. “A surprise or shock tax is very destabilising for the industry when making long-term investments,” said Dorothy Thompson, the chief executive of the company.
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