Nottingham City council to tax energy firms
Posted on: September 5th, 2008 by Alf Stephens
The Nottingham City’s labour council is all set to impose a windfall tax on energy companies. The motion for the same will be taken up during the council’s meeting on Monday.
The motion calls for a one time windfall tax on oil and energy companies to fund Nottingham’s domestic energy efficiency improvement plans.
In recent months, the energy prices have shot up more than 35 percent. Prior to the price hike, an estimated 10,000 private homes in Nottingham suffered from fuel poverty. Six thousand council buildings have failed to meet the thermal efficiency standards, indicative of poor quality of insulation and energy management.
The majority of public opinion is that the energy firms are making huge profits from the price hike. But many people of Nottingham, who are surviving on fixed incomes, are unable to cope with high energy bills.
The Labour Government had levied a windfall tax of £5bn on privatised utilities when it assumed office in 1997.
70 Labour MPs have signed on a petition which calls for a repeat of 1997 measures and Nottingham city is all set to follow suit.
But, John Hutton, the Energy Minister has expressed his reservations about the move. He is apprehensive that such a move would discourage investors in energy and can affect the investments planned in renewable energy projects. Moreover, nothing stops the energy companies from passing on the windfall taxes to the consumers through bills.
Coun Alex Foster, the environment spokesman of Liberal Democrats finds it interesting that the Energy Minister himself is voicing opinions against the party’s stand.
