Greenpeace came out with a startling claim today.
EDF let slip they are gearing up their lobbying machine to ensure that a new £1bn nuclear 'subsidy-on-the-sly' adds to their profits, rather than going to help those struggling to pay their electricity bills.
The introduction of a carbon tax meant to incentivise low-carbon energy projects by taxing gas and coal-fired power has left nuclear in line for a £1bn bonus.
Nuclear power stations do not burn fossil fuels and so are exempt from this new tax on high carbon emissions. However, since gas and coal energy companies will be increasing consumer bills to maintain the same profit margin on the energy they sell, this leaves the door wide open for companies like EDF to increase consumer bills in line with other energy companies thus gaining an additional £1bn pure profit.
Greenpeace have been trying to persuade Labour and the Lib Dems to introduced a tax on this windfall profit which would be used to help those hardest hit by the energy price hikes. Labour's been enthusiastic about the idea and tabled amendments to the budget which didn't pass. Lib Dem MPs initially refused to back calls for a windfall tax, but at its conference last week, the party made a welcome u-turn.
Yesterday, at a packed CBI breakfast fringe meeting at Labour's conference, Greenpeace asked EDF whether they would support or stand in the way of lobbying efforts for a 'windfall tax' that would ensure this £1bn would be used to help the those most vulnerable to energy price hikes. To many people's astonishment Dr Andy Spurr from EDF confirmed in blunt terms that they were planning to lobby against a new windfall tax because they wanted to plough the money back into their own business and increase profits to make their business more financially sustainable.
At a time when half a million more people have been pushed into fuel poverty by recent price hikes and the combined profits of the big six energy companies was £3billion last year, this is hardly the message EDF’s PR department was hoping for!
Greenpeace have been lobbying hard for a 'windfall tax' to prevent this subsidy-on-the-sly. Calling instead for the new revenue to be invested in insulating the homes of the fuel poor - including young children, older people, and single parents as well as a new technology innovation fund to help energy intensive industry lower it's carbon emissions. With Labour and the Lib Dems now supporting our calls, pressure for change is mounting.
It is now time for the Government to stand up for consumers and business - not keep bailing out an ever more expensive nuclear industry by the back door.
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