5 Reasons Why We Don’t Need a Windfall Tax on Energy Firms

Mark Seall — Mon, 04 Aug 2008 19:13:59 +0000

Campaigners are pressing the British government to impose a “windfall tax” on energy companies following record profit announcements in the past week from Shell (£7.9 / $15.5 billion) and British Gas parent firm Centrica (£2.97 / $5.8 billion).

Energy companies have become flush with cash following high margins from record oil prices and a government sponsored carbon permit give-away used to justify a consumer price hike.

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Despite campaigners and Labour politicians describing recent profits as “grotesque” and “indecent”, and calling for additional taxes on recent gains to subsidize increasing household energy costs, there are several reasons why energy windfall taxes are fundamentally wrong, with the potential to worsen, and not improve the current energy crisis:

Green Options » centrica

5 Reasons Why We Don’t Need a Windfall Tax on Energy Firms