>If you cap the price – then profits, prices and therefore inflation comes down. The latter is a key attraction to the government, which has £500bn of debt.
>
>The electricity producers are lobbying hard against this and warn that an intervention like this has several risks.
>
>Firstly, it will reduce the incentive for energy retailers to buy in advance – creating a less predictable, more volatile market.
>
>Secondly, they have already sold most of what they expect to produce this year and next.
Am I being thick here or is the BBC saying that the UK national debt is £500bn? In fact it’s nearly five times that.
In other words: firms dislike the idea of their profits being reduced.
> Some energy bosses said they would actually prefer a windfall tax – with one mentioning he would be happy to pay tax at 25% rather than the current 19%
Are they trying to redefine a windfall tax?
>The plans could hit the profits of energy companies including SSE, Scottish Power, RWE and EDF Energy.
Oh no… why can’t they just make a bit less money for the greater good? What’s so bad about that…
4 comments
>If you cap the price – then profits, prices and therefore inflation comes down. The latter is a key attraction to the government, which has £500bn of debt.
>
>The electricity producers are lobbying hard against this and warn that an intervention like this has several risks.
>
>Firstly, it will reduce the incentive for energy retailers to buy in advance – creating a less predictable, more volatile market.
>
>Secondly, they have already sold most of what they expect to produce this year and next.
Am I being thick here or is the BBC saying that the UK national debt is £500bn? In fact it’s nearly five times that.
In other words: firms dislike the idea of their profits being reduced.
> Some energy bosses said they would actually prefer a windfall tax – with one mentioning he would be happy to pay tax at 25% rather than the current 19%
Are they trying to redefine a windfall tax?
>The plans could hit the profits of energy companies including SSE, Scottish Power, RWE and EDF Energy.
Oh no… why can’t they just make a bit less money for the greater good? What’s so bad about that…