Ofgem's ideas on windfall taxes and vulnerable consumers

Ofgem press notice (3 pages, PDF) on ministerial concerns about rising energy prices. This states that:

“The energy industry will benefit from a windfall worth £9 billion of tradeable permits under the European Emissions Trading Scheme. This windfall is nothing to do with collusion or anticompetitive behaviour, but stems from the free emission permits given to companies. That is why Ofgem is renewing its proposal that this windfall could be used to help customers in fuel poverty, who have been hardest hit by the recent energy price rises. “The UK would not be alone in looking at this windfall – Spain has recently done so.”

Ofgem's proposals for the use of any money raised in this way include:

4. The package of fuel poverty measures includes a proposal by Ofgem to host an energy summit, to promote ongoing switching among vulnerable customers, and a new initiative to run a pilot project in partnership with Citizens Advice to promote greater awareness of the different energy choices for customers on low incomes and in fuel poverty.

For further information or advice please contact Franck Latrémolière.

Filed under Ofgem.

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