Articles | MPs call for energy windfall tax

MPs call for energy windfall tax

Published: Tuesday, 26 August 2008, 10:04AM

Energy firms recording large profits could have to pay a one-off windfall tax in a bid to help poorer families who are struggling with their bills.

The calls come after the "big three" energy firms - Shell, BP and British Gas recently recorded large profits.

More than 80 MPs have signed the petition and the group organising it, Compass, said it expects more MPs to back it after the summer recess.

The petition said a share of the profits made this year by the main energy providers - up from £557 million in 2003 to £3 billion this year - should be "ring-fenced to deliver social and environmental justice for all".

In the first half of this year, BP made a £6.7 billion profit - a 23 per cent increase.

The petition said: "Part of the money raised should be used to immediately help those struggling with rising fuel bills and should be particularly targeted at families in or facing fuel poverty."

"However, the best strategy to eliminate fuel poverty forever is to ensure every home is insulated and energy efficient to the highest standards.

"Therefore, much of the money raised should be used to kickstart a national programme of home energy efficiency and installing renewable energy, starting with the homes of the fuel poor."

However the Government has held back from taking a firm stance on the issue saying it's "looking at" all options.

It is thought that Prime Minister Gordon Brown may be considering an alternative levy on carbon emissions.

Business Secretary John Hutton has said that a more long term view must be taken on the issue and the UK must be wary of making any "fiscal" changes to the energy sector that chase away investors.