Friday, September 30, 2022

The United Kingdom calculates that electricity companies will make 200,000 million euros in skyrocketing profits

The rapid rise in electricity prices in the United Kingdom has already cost it: Finance Ministry estimates calculate that firms will receive a total of £170,000 million (200,000 million euros) in skyrocketing profits over the next two years. a number that Opens the door to an extraordinary tax for families to cover potential rescue costsThe cost of which would be about half the figure of the stratosphere.

Outgoing Government of Boris Johnson Already approved tax on windfall gains in oil and gas production, which can now be extended to power generators. The current tax windfall rate is 25%, which alone could cover the cost of holding households’ bills at around £2,000 a year for a year, or around £40 billion. The current tax will raise around 5,000 million this year.

Both Liz Truss, the favorite to succeed Boris Johnson as prime minister next week, and her rival, Rishi Sunak, have promised aid to civilians, though neither detailed what that promise would translate to.

Truss has repeatedly stated that he opposes taxes on windfall gains, arguing that “They send the wrong message to investors”, So far, he has also refused to say how he will help families – other than emphasizing the rejection of ‘small payments’ – and businessmen, whose bills will be multiplied by four this winter compared to the last one. May, arguing that he needs to know the exact figures after he assumes office before making a final decision.

Kwasi Quarteng, who holds all the ballots for Truss to be finance minister, has reiterated his opposition to the rate, even as the Johnson government, in which he holds a portfolio of companies, energy and industry, introduced it earlier this year. did. , “I have always opposed such taxes in principle, and continue to oppose them,” he told the House of Commons in June. The fear of tax opponents is that Discouraging investment in renewable energywho are pocketing the full amount to be received for each megawatt, by producing energy practically for free.

In contrast, Sunak wrote off the current windfall tax in May, when he was still Johnson’s finance minister, and believes that taking it to power companies will be a way to raise money to help families, Legislation passed in July stipulates the tax until the end of 2025, but allows companies to reduce the amount they pay if they increase their investments in oil and gas production, thus expanding energy supplies.

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Nation World News Desk
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