Energy prices

[JohnD]

"UK chancellor Hunt to cut back energy support scheme
Jim Pickard in London

Jeremy Hunt has announced that the government is cutting back its energy support scheme to save billions of pounds with the price guarantee for households only remaining universal until April.

Hunt, who became UK chancellor on Friday, said that the scheme would subsequently become more targeted at more vulnerable households – as he meanwhile dropped most of his predecessor’s tax cuts including a 1p cut in income taxes."

 

[JohnD]

"The overall energy support package was expected to cost as much as £150bn at a time when the UK’s public finances are in a deeply straitened state.

The package consisted of a six-month support scheme for businesses costing an estimated £29bn, as well as a two-year price cap for households which could cost taxpayers another £120bn.

The household scheme was set to limit yearly gas and electricity bills to £2,500 on average for 28mn households for two years from October 1.

Hunt said there would be a new Treasury review of energy bills from April onwards to cut the price of the scheme and make sure it is more targeted."

 

[gas112]

there must still be hundreds of thousands if not into the millions on low priced fixed price contracts easily identified with companies computer systems target them no need for them to get 400 quid to help with the price increases

 

[JohnD]

A lot of our energy comes from wind and solar. Their cost of generation is cheap, and unaffected by oil and gas shortages. Same with nukes.

A windfall tax on excess profits caused by oil and gas prices would do no harm to the energy companies, and could be used to stabilise prices or help those in need.

 

[JohnD]

Barmy Truss ruled it out.

Shell boss calls on government to introduce windfall tax on energy companies to help poor

Outgoing Shell boss Ben van Beurden has said windfall taxes will be "inevitable" in "protecting the poorest", as an energy economist and former government advisor predicts further windfall taxes will be "the next U-turn from the government".

www.lbc.co.uk

Shell chief: governments may need to tax energy firms to help the poor

Ben van Beurden also warns against EU moves to cap price of gas and electricity to protect consumers

www.theguardian.com

BP admits windfall tax will not affect its North Sea investments after all

Executive tells MPs new clarity on levy’s December 2025 end date means it no longer needs to review investments

www.theguardian.com

BP’s windfall problem cannot be solved with windmills

High household bills mean UK oil supermajors have a timing problem that investment pledges will not resolve

www.ft.com

 

[ellal]

there must still be hundreds of thousands if not into the millions on low priced fixed price contracts easily identified with companies computer systems target them no need for them to get 400 quid to help with the price increases

A drop in the ocean compared to the tens of billions that the energy companies are making with their profiteering!

 

[Ihavenojob]

A windfall tax on excess profits caused by oil and gas prices would do no harm to the energy companies, and could be used to stabilise prices or help those in need.

The profit usually goes to shareholders, some of which are pension funds, funds which are going to suffer, well, the beneficiaries of the pension fund will. Tax the bonuses hard.

 

[JohnD]

The profit usually goes to shareholders, some of which are pension funds, funds which are going to suffer, well, the beneficiaries of the pension fund will. Tax the bonuses hard.

Shareholders already get dividends from normal profits. What have they done to earn the windfall caused by Putin's war?

 

[Alec_t]

Tax the bonuses hard.

The companies could simply increase the bonuses to compensate, and the increased cost would be passed on to customers.

 

[motorbiking]

I personally would have liked to see it include incentives to install solar, wind, insulation etc. Simply subsidising our fuel smacks of "giving a fish" vs "teaching to fish".

 

[Ihavenojob]

Shareholders already get dividends from normal profits. What have they done to earn the windfall caused by Putin's war?

Invested. The price of gas had risen before he invaded, it peaked just after, but has steadily declined.

 

[JohnD]

Invested.

Wrong

 

[Ihavenojob]

Wrong

Explain how someone can get dividends without investing?

 

[JohnD]

Explain how somebody can "earn" money by doing something useful.

Then explain what a windfall profit is.

 

[Ihavenojob]

The companies could simply increase the bonuses to compensate, and the increased cost would be passed on to customers.

Bigger bonuses = more tax revenue.

Explain how somebody can "earn" money by doing something useful.

you don't earn dividend payments; they are rewards for showing faith and investing in a company. You could also lose all your money.

Then explain what a windfall profit is.

Excess profits due to outside forces, win win for everyone as you say you don't have to invest to receive dividends. How do I claim mine?