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Copyright © 2008
Catalyst Commercial Services Ltd

Business Gas, Business Electricity
Header City
- 16 August 2008

Filed under: Latest News, Energy Suppliers - Catalyst Commercial Services Ltd - U.K. Energy News @ 5:05 pm

Greedy power firms are raking in an £11 billion windfall from a scheme meant to curb greenhouse gases. Figures uncovered by The People’s fuel campaign show The Big Six energy giants are ripping off consumers over permits. The permits, which tell the firms how much fossil fuel they are allowed to burn, are given to them by the Government free. But they pass on a charge of £9 a unit to electricity users which is what they reckon the value of the permits will be in five years when they will have to pay for them. If the scam was ended the 5.5million poorest users could be handed £2,000 each - enough to heat and light their homes for two years. The windfall is at least £2billion higher than previously estimated - and  The People has called for action to end the unfairness. “The figures The People has uncovered are astounding,” said Lib Dem leader Nick Clegg, who backs the campaign. “Energy companies enjoy a massive subsidy when many families are in a desperate struggle to pay bills. “This multi-million pound windfall should be used to protect the most vulnerable from fuel poverty.” And Lord Mogg, boss of industry regulator Ofgem, added: “The Government should reduce the free allocation of allowances. “This could provide revenue to fund measures to help alleviate fuel poverty.” The European Emissions Trading Scheme tells polluters how much carbon they are allowed to burn. Unused permits can be sold to other European companies who need more, which is what gives them their notional value. The Government allocates permits to industry which add up to £10.7billion. Scottish & Southern get the biggest windfall of £1,423million, followed by E.on with £1,386million and npower with £1,271million. Centrica, the British Gas parent company, get the least at £492million because they generate electricity using gas rather than coal. From this year seven per cent of the permits will be auctioned although the Government has the power to sell 10 per cent. A new system will start in 2013 and ministers are pressing for ALL permits to be auctioned then. That would give the Treasury £11billion which they could use to fight fuel poverty. So as a start The People is demanding that the Government auction 10 per cent of the permits now which will give the poor an extra £1billion. You are fuel poor if you spend more than 10 per cent of your income on energy and must choose between heating and eating. The figures The People have uncovered are astounding. This multimillion pound windfall should be used to protect the most vulnerable. 

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