The ‘carbon tax’ much-loathed by businesses as an admin burden was blamed for reducing liquidity by SSE yesterday.
Officially known as the carbon price floor, it is a de facto tax on emissions by large businesses which was originally meant to be recycled as a reward for businesses but was claimed by the Treasury.
The supplier’s comments came in a response to the Competition and Markets Authority (CMA) which is reviewing competition between energy suppliers.
In a foreword to the report, CEO of SSE Alistair Phillips-Davies fingered the Carbon Price Floor in particular as having “a negative impact on long-term liquidity”, suggesting it creates “uncertainty around future levels, which can be set at every budget”.
In its statement the firm said it remains “supportive” of the principles behind mandatory social and environmental schemes that are paid for through energy bills.
However the supplier suggested the burden of these costs could be taken “off energy bill payers” and be funded in a “fairer and more progressive way, such as taxation”.