Tax on energy profits would raise much needed money, but complications show that control of a basic necessity is now firmly out of our hands.
We all need energy to heat and light our homes. You might say that, in the context of a wealthy Western economy, the ability to keep warm is a basic human right. It certainly should not be a privilege and it certainly should not be something that is simply beyond the means of millions of people across the country.
Distressingly however, that is precisely the situation we find ourselves in today. Average fuel bills have reached a scandalous £1,300 per year - as a result vulnerable families and the elderly are simply priced out of warmth.
It may surprise you to learn that the energy suppliers have schemes in place to provide assistance to those unable to pay their bills. It will surprise you because, whilst they put money aside for this purpose, they don't tell anyone - after all, if people know about this assistance, they might actually request it, perish the thought.
Equally, pulling neat little stunts like asking call centre staff to spend time in a 'cold room' so they can empathise with customers who actually live in those conditions is meaningless. It's a publicity stunt that does nothing to alleviate fuel poverty.
To add insult to injury of course, the energy companies are all merrily putting up prices, blaming wholesale oil and gas prices whilst raking in record profits. When you take all this into account, it's easy to see why a Windfall Tax on energy profits has become an attractive proposition. Something like 67% of us want to see the oil and gas companies hit with a one off tax - no doubt driven by indignation at the record profit/record prices axis.
Despite this support however (and let's face it Gordon Brown needs all the vote winning policies he can get), the Government seems this week to be backing away from the idea. When you look at the proposition more closely, it is easy to see why.
First it is not just a simple matter of rocking up at British Gas HQ carrying a whopping bill (nice though that would be). All of the energy companies are owned by global oil and gas conglomerates these days, so it is very hard to work out exactly where all the profits come from and how much should be affected by a Windfall Tax. You can bet the likes of Centrica (British Gas) and RWE (npower) won't be bending over backwards to help.
Of course they won't. And in fact their threats are amongst the main reasons for the Government's dithering. Not surprisingly, the energy companies have pointed out that any Windfall Tax will ultimately be passed on to consumers in the form of higher bills and might even force them to relocate in other countries - thereby depriving the Treasury of billions of pounds in corporation tax (about £16bn this year).
For me, the Windfall Tax is a sideshow. More importantly, the whole issue makes it abundantly clear that control of a basic necessity of life is now firmly out of our hands. It is in the hands of a few very powerful companies and their shareholders.
I'm not against commerce in general, but I do think a line should be drawn somewhere - personally, I draw the line at basic necessities like heat, power and water. The question is 'Should a few people be able to get very rich by exploiting our basic needs, and should the utilities have been privatised in the first place?' My answer, at least for now is 'No and No.'
All that aside, if you are having trouble paying your bills or just keeping your house warm there is help available. Depending on your circumstances one or more of the following could be a good place to start:
- Find out what grants and help you're entitled to: Consumer Focus
- Help with bills: The Home Heat Helpline
- Help with bills and energy efficiency measures: Eaga Partnership Charitable Trust
- Grants for insulation and heating: Warm Front England (0800 316 2805)
Not forgetting those elusive energy company grant and assistance schemes (with caring sharing names)
- npower: Spreading Warmth
- British Gas:Energy Trust
- E.ON Caring Energy Fund (formerly the PowerGen hardship Fund) (0800 051 1480)
- EDF Energy Trust Fund (01733 421021)
- Scottish Power Energy People Trust (0141 568 2000)
