Shouold Osbourne have included a further tax on Energy companies in his plans

dori2o

I think this was the ample opportunity to make some serious money in tax for the UK gov't from the massive profits made by Energy companies.

Despite falls in wholesale gas and electricity production costs, or energy bills have been steadily increasing,and fat cat bosses and shareholders have been raking it in.

Surely the chance was there to introduce a windfall tax on these grossly inflated profits?

Radiantsoul

Oil companies don't make especially large profits when you consider the huge amounts of capital that they have to invest.

A._Badger

dori2o wrote: »

I think this was the ample opportunity to make some serious money in tax for the UK gov't from the massive profits made by Energy companies.

Despite falls in wholesale gas and electricity production costs, or energy bills have been steadily increasing,and fat cat bosses and shareholders have been raking it in.

Surely the chance was there to introduce a windfall tax on these grossly inflated profits?

You seem either to be unaware of, or are overlooking, the 'hippy tax' element: the vast sums of money being squandered on 'Green' levies, which it has been estimated are soon to add over £800 to every single household's energy bills.

http://www.telegraph.co.uk/comment/columnists/christopherbooker/8068402/Renewables-will-add-880-a-year-to-bills.html

Loughton_Monkey

Yes, taxing profits like this all sounds very 'cosy', but at the end of the day, such costs are ultimately always passed onto the customer. It's just yet another very inefficient way of circulating money around the system.

If such utility companies are over-pricing or profiteering, then it is because there is something getting in the way of pure free market competition. That's the challenge we have to deal with.

Radiantsoul

Loughton_Monkey wrote: »

If such utility companies are over-pricing or profiteering, then it is because there is something getting in the way of pure free market competition. That's the challenge we have to deal with.

And OFGEM spend a fortune never really finding anything.

A._Badger

Radiantsoul wrote: »

And OFGEM spend a fortune never really finding anything.

That's one body that could certainly go!

StevieJ

dori2o wrote: »

I think this was the ample opportunity to make some serious money in tax for the UK gov't from the massive profits made by Energy companies.

Despite falls in wholesale gas and electricity production costs, or energy bills have been steadily increasing,and fat cat bosses and shareholders have been raking it in.

Surely the chance was there to introduce a windfall tax on these grossly inflated profits?

I have a good idea for you, become a fat cat shareholder, not as difficult as it sounds

chewmylegoff

nice idea, but if the govt imposes a windfall tax on energy companies they will simply charge you more to pay for it whilst maintaining returns to shareholders.

angrypirate

Radiantsoul wrote: »

Oil companies don't make especially large profits when you consider the huge amounts of capital that they have to invest.

Err, im working on a new project, oil rig in the north sea thats due to start up in the next 18 months and it will pay back in less than 2 years at current oil prices. But no, i dont think they should be taxed even more.... It'll only be passed on to the consumer at the end of the day

Radiantsoul

angrypirate wrote: »

Err, im working on a new project, oil rig in the north sea thats due to start up in the next 18 months and it will pay back in less than 2 years at current oil prices. But no, i dont think they should be taxed even more.... It'll only be passed on to the consumer at the end of the day

Perhaps on an isolated small scale project. But overall the oil and gas sector have high P/E ratios.

chewmylegoff

Radiantsoul wrote: »

Perhaps on an isolated small scale project. But overall the oil and gas sector have high P/E ratios.

P/E ratio is in no way linked to capital investment.