bluethrunthru
Well-Known Member
Jesus wept - Chris Philp an actual Govt Minister trying to worm out of any blame for Johnson causing the Starmer protests - cringeworthy
The problem with the political climate is it seems people don't want cheap gas bills, instead they want a punitive tax regime which punishes major companies. If we implement a windfall tax then any proceeds will be sent to the treasury to be absorbed in the £2 trillion debt that it currently holds, nothing would change.Our government is not almost unique or even in the minority for not implementing a windfall tax. In fact here are the European countries that have as far as I know:
Bulgaria - have implemented a windfall tax on the nuclear power plant at Kozloduy
Italy - have introduced a windfall tax on profit from solar, wind, hydro and geothermal electricity producers
Romania - have introduced a windfall tax on producers where revenues exceed 91EUR/MWh
In addition Germany - have threatened any “middle-men” firms making excess profits. But they haven’t said what they would do it what constitutes excess profit so this just sounds like rhetoric rather than an actual policy but let’s include it for completeness.
To your last paragraph you, of course, have a point. I’ll take objection to one part, it’s irrelevant where gas/oil is produced - there is a market price (based on quality) that dictates what it sells for if we won’t pay it someone else will. Anyway to the wider point - the UK does provide tax incentives to companies to start new projects or give them tax breaks to decommission old sites and it’s a difficult balancing act. Gas producers will pay over 100% more tax on profits than they did last year (£7bn up from £3bn) but even so it will be pretty low historically. The UK is regarded as providing the best conditions for companies to make profit in developing big offshore fields in the world - and the UK is keen to cash in on its remaining reserves before the world becomes allergic to fossil fuels. There is an estimated 3.3 trillion cubic metres of gas remaining in the North Sea or about £2,500 trillion of notional value at current prices - and the government needs the like of shell to invest in getting it out whilst the demand is still there (and before Scotland break away). Now given the bigger picture if the government don’t want to introduce a windfall tax (and there are good reasons not to whether we like them or not) then it could find a bit more than its promising to cover 50% of the increase for those most in need. I don’t think people really care where the money comes from do they?
Erm, you know that little message left in the draw was a traditional joke left by outgoing finance ministers which was started by Winston Churchill in the 1920's?
I'm not stating him directly, but 'Sorry, old bean, I've made a bit of a mess of things. Have fun clearing up the mess' was a typical sort of message left by outgoing ministers of both parties so your claim a message like that would be the first time in history a conservative government could leave a letter like that is absolute rubbish.
It was seized upon by a newly elected government to impose austerity, a widely condemned policy that achieved nothing but misery on the less fortunate in society and is well known by economists as a policy that doesn't work. David Cameron admitted that note was the excuse he was looking for.
You may well know a lot about the energy market, but how do you feel about a budget of £37 Billion for an App that didn't work? How do you feel about the paper trails that show Priti Patel and Mat Hancock conspired to award a contract for the supply of PPE the NHS told them was double the price they would expect to pay, and wasn't up to the standards they required. Two months later they were awarded a contract of £106 million, more than double the amount the friends of friends Priti Patel had asked for? Is it not likely a few bob of that huge profit found it's way into bank accounts in a little island in the Caribbean Sea?
It's obvious you are a tory, but let this sink in for a few minutes. When the Labour government lost power the last time, our national debt was £600 Billion, and that was after the financial crash when we had to pump money into the system to stop banks collapsing.
After austerity, and before the pandemic took hold, our national debt was £1 trillion. It is now £2.1 Trillion, and growing.
Yeah, talk about energy prices all you like, and I can accept I was wrong about the VAT on Spanish electricity bills, but please have a look at the state of the country at the moment. You may think it's fine, but I'm fed up with hearing we live in one of the wealthiest countries on Earth when millions are struggling with the basics.
We have a crazy situation where the likes of a Tesco have posted, over the last decade, profits of between £3.5 and £4.8bn each year. However the shop workers salaries from Tesco have continued to decline in real terms during the same period - which are then being topped up by tax credits - i.e you, I and millions of others are subsiding Tesco profits - it’s mental (and I’m sure there will be a correlation between profit and decline in real term pay). And it’s the same with the other supermarkets. If I was in power they’d be given 6 months to start paying their staff properly or they’ll be subject to a new tax to cover the cost of their staff being topped up and then some for taking the piss. And if they shove up prices as a consequence they’ll also get whacked with a new tax for being cunts - the **** tax I’ll call it - that’s got a certain je ne sais quoi.
The problem with the political climate is it seems people don't want cheap gas bills, instead they want a punitive tax regime which punishes major companies. If we implement a windfall tax then any proceeds will be sent to the treasury to be absorbed in the £2 trillion debt that it currently holds, nothing would change.
Either way, such a tax will make things worse because the energy companies will raise prices to account for it and the customer then pays more. It's like if you go to Mcdonalds and order a full fat coke, they add on something like 20p because of the sugar tax. Any tax like this will be regressive and even if it achieved the desired effect it would potentially cost people their jobs too so it's completely self-defeating.
The real thing we need to do is consider energy long term by considering the feasibility of bringing it under national control. This is following the exact same path as the railways for me, transport should of been about transporting people but it became about the best franchise model for train companies. Energy should be for people too, it shouldn't exist to make certain companies richer.
UK drilled gas should be produced and priced for UK customers but right now it's produced under the control of major corporations who predominately operate beyond borders. The reason we can't influence any of this is because we have no control nor influence over these companies. A windfall tax exerts zero control and it's a completely mad idea if you think about it. We pay a company to get our gas and then we tax them for it, it makes no sense.
It makes even less sense when you consider that we have a huge energy resource on our doorstep but because we can't be arsed to get our hands grubby, we outsource it to companies who sell it back to us. It's great for the FTSE of course and that's what I think most people are focussed on, especially the government. It's silly for example to defend Shell's profit last month because most people will hold pension shares in Shell. However, the fact that we have to rely upon Shell or whoever to supply our energy IS actually the problem.
I think people forget that the price of gas is not reflective at the moment of demand, it's only reflective of supply. The actual demand has been falling for years and it'll probably fall again this year, especially compared to 2020/2021 where people were locked down at home.I think people do want cheap gas. cheap food. cheap holidays. But they also want someone to pay for it and the climate damage - hence why they want a punitive tax to give them cheap gas.
Once upon a time we charged royalties, we then charged supplementary charges on profits at 32%, since 2016 this has fallen to 10%. Giving it away a bit really aren’t we? At least shell are moving their HQ here…will pay more tax as a result, possibly.
I think people forget that the price of gas is not reflective at the moment of demand, it's only reflective of supply. The actual demand has been falling for years and it'll probably fall again this year, especially compared to 2020/2021 where people were locked down at home.
A good reason for this is indeed climate change, today it's 11°C in February. We haven't got the heating on and I don't think we've turned it on for a few days except for an hour or two at night. I don't think the price of consumer gas is a big problem however electricity is going to become extremely expensive and that's a big problem.
The fault of that isn't due to profit guzzling companies, it's because we have chosen an expensive energy mix which relies upon wind without being backed up by a reliable renewable source like nuclear.
Wind is very good at this time of year however when the wind doesn't blow we have to burn more gas to make up the difference because we don't have any other alternative as we don't burn coal anymore (which is cheap). The net result of having to burn more gas at a time when gas is very expensive is your electricity is more expensive.
National Grid: Live
Shows the live status of Great Britain’s electric power transmission networkgrid.iamkate.com
O'Brien got it in one today.Jesus wept - Chris Philp an actual Govt Minister trying to worm out of any blame for Johnson causing the Starmer protests - cringeworthy
I don't think it's going to make too much difference. We all are using more and more electricity and the green change will increase this dependency even more. If you reduce your energy usage by 50% but then the price of energy goes up 50%, you still aren't any better off and neither is the climate if we are still burning gas to cope with that demand.I agree we need (or needed) more nuclear power but no one wants one on their doorstep and I don’t blame them either, who would!?!! Renewables is a great source but as you rightly point out we need a reliable back up source of power for when the wind (or whatever) doesn’t blow.
Ultimately I think we all need to look at ourselves and our energy usage. And this is one of my main gripes with green policy - it tells us we can carry on being as wasteful or selfish as always (and I put myself in that category) because our energy will come from wind etc, we can carry on being parasites because some clever sausage will fix it. We can’t because we can’t produce enough as a nation to do so… unless we keep burning fossil fuels or build more nuclear. Maybe one positive outcome from the current cost crisis is people will think a bit more before putting that light bulb on which will create a new normal way of thinking once this current energy cost spike passes (which it will). I’ve already changed my behaviours a little, checking lights haven’t been left on and the such.