Extending the windfall tax to power generators could cause long-term problems in the sector.
That’s the suggestion from the Chairman of Centrica Scott Wheway who spoke during the company’s annual general meeting yesterday in Leicester about the current energy landscape.
British Gas owner has said will not challenge the government’s decision to impose a 25% extra tax on North Sea oil and gas.
The windfall tax was included in the string of measures the government announced a few days ago to support people with the rising cost of living.
Scott Wheway said: “We don’t see any scope, or requirement, or necessity for a legal challenge to those things that have been brought forward.”
Earlier this week, giving evidence on this package, the Chancellor said: “We are urgently considering the case to extend that levy (Energy Profits Levy) to the electricity generation sector where we do believe there are extraordinary profits also being made.”
Responding to a query from an individual shareholder at the company’s annual general meeting yesterday in Leicester, Mr Wheway said: “But we also share a lot of concern around choices that may be made to apply taxes to energy production which – although they may derive short-term benefits – could cause medium- and long-term problems.
“We know that the industry that we’re in is a very long-term industry and we urge everyone thinking of those things to strike the right balance.”