Energy Bills: Major Calls For 'Windfall Tax'

Written By Unknown on Selasa, 22 Oktober 2013 | 22.11

Sir John Major has called for energy firms' profits to be taxed to help people struggling to pay bills if there is a cold snap.

The former Prime Minister said he did not believe it was "acceptable at all" that three of the so-called Big Six energy companies had already hiked prices by around 10% when costs were "rising broadly 4%". 

He warned that "many people are going to have to chose between keeping warm and eating" if temperatures were to plummet this winter.

"That is not acceptable," Sir John said.

"So if we get this cold spell the government, I think, will have to intervene and if they do intervene, and it is costly, I for one would regard it as

perfectly acceptable for them then, subsequently, to levy and excess profits tax on the energy companies and claw that money back to the Exchequer, where their primary job is to get the economy working and people back to work."

Earlier, the Commons Energy Committee confirmed it would be summoning the bosses of British Gas, Scottish Power, E.ON, EDF Energy, nPower and SSE to give evidence on the hikes to bills.

Sir John also said at the Parliamentary Press Gallery lunch that Labour leader Ed Miliband's "heart was in the right place" when he suggested a cap on energy prices, but insisted the plan was unlikely to work.

Labour seized on Sir John's comments that "government should exist to protect people not institutions".

On Twitter, Mr Miliband said: "Sir John Major makes Labour's argument: David Cameron stands up for the energy companies not hard-pressed families."

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