Tuesday 06th of January 2009

TUC calls for a coherent energy policy

Posted on: September 10th, 2008 by Tessa Clarke

Trade unions have called on the government to impose windfall tax on big energy companies to save their consumers from excessive price rise. According to them, government inaction will force the consumers to choose between eating or heating during the coming winter.

They criticised the six big energy companies for making a profit of £1.6 billion last year and for raising the energy prices by 42 per cent this year.

The motion on the government for imposing the windfall tax has been tabled ahead of the Chancellor Alistair Darling’s keynote speech.  The motion also wants the government to come up with a coherent energy policy.

The unions are not happy with the government’s decision of not imposing windfall tax on big energy companies.

The Chancellor, however, turned down the windfall tax demand in his keynote address. Calling it a short sighted solution, he said that the government is working on making homes more energy efficient. This will reduce the energy bills on a long term basis.

He also turned down the demand for hiking the pay packages of public sector employees above the inflation rate. He insisted that doing this would make the inflation get entrenched in the economy, as is evident from country’s history. Raising pay packages above the inflation rate, in public as well as private sector would only result in making the bad situation worse.

However, he was in agreement with unions that the utility companies are not doing enough to help its customers who are suffering from fuel poverty.

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