Will Britain give the green light to tougher windfall tax on energy profits?

Ministers will reportedly hold “crisis talks” with energy giants’ bosses tomorrow

Big Zero Report 2022

While households are forecasted to be hit by £4,200 energy bills in January, oil and gas majors could face tougher windfall tax under new government plans.

Energy giants’ expected profits and investment plans will allegedly be scrutinised during a ‘crisis meeting’ which is expected to be held as soon as tomorrow.

It was reported that the Business Secretary and Chancellor Nadhim Zahawi will hold this meeting to explore options around an increase in the existing energy windfall tax.

In May, former Chancellor Rishi Sunak announced a temporary windfall tax of 25% on the excess profits of oil and gas firms.

In response to the new tax, the oil and gas industry warned that the measure will “hurt” the sector’s investments. 

A Treasury source told the Sun: “If you look back at what these firms were projected to make and what they actually brought in, it was beyond their wildest expectations. We are looking at options to go further and faster on those profits.”

Energy giants, including Shell and bp reported profits worth billions in the last couple of weeks, prompting fury and criticism from campaigners and charities.

A government spokesperson told ELN: “We are engaging with the electricity sector to drive forward reforms and to ensure the market delivers better results for people across the UK.

“In the meantime, and as we announced in May, the government continues to evaluate the extraordinary profits seen in certain parts of the electricity generation sector and the appropriate and proportionate steps to take.”

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