Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Centrica ‘will not challenge windfall tax’

Post Thumbnail

British Gas owner Centrica will not launch a legal bid to challenge the Government’s new windfall tax, its chairman said on Tuesday.

But Scott Wheway warned of “long-term problems” if the tax is expanded to include power generators.

He added that the company welcomes the support the Government has announced to support struggling customers.

Mr Wheway was asked by shareholders at the company’s annual general meeting in Leicester if he would challenge the decision to impose a 25% extra tax on North Sea oil and gas.

“We don’t see any scope, or requirement, or necessity for a legal challenge to those things that have been brought forward,” he said.

However, he warned that the Treasury could cause problems in the move to decarbonise the UK if it insists on also taxing the profits of energy generators more.

“We’ve got every empathy with the plight of many customers presently that are facing difficulties in managing their energy bills, and we welcome action to help those customers.

“But we also share a lot of concern around choices that may be made to apply taxes to energy production which – although they may derive short-term benefits – could cause medium- and long-term problems.

“We know that the industry that we’re in is a very long-term industry and we urge everyone thinking of those things to strike the right balance.”

Chancellor Rishi Sunak argues that a second windfall tax on electricity generators could help pay for support for households that are facing runaway energy bills.

He said these companies are seeing “extraordinary profits” as oil and gas prices push up the cost of electricity.

But he was coy when asked by the Treasury Select Committee earlier this week when or if such a tax might be introduced.

The companies that would be hit include many early builders of wind farms.

Much of the wind power built in the UK since 2015 has been done under the so-called Contracts for Difference scheme (CfD).

This guarantees that a wind farm will always be paid a set amount for every megawatt hour of electricity it produces.

When the price of electricity is lower, therefore, the wind farm is subsidised, but if the price is higher than the agreed price then the wind farm will pay the difference back to billpayers.

But wind farms that are not covered by CfD are currently selling their electricity at elevated prices – and it is this profit that the Chancellor wants to target.

Recommended for you

More from Energy Voice

Latest Posts