This huge profit is not because oil and gas production has suddenly become cheaper, it is not just because the international prices of their products are higher. These are the same international prices that are pushing up energy bills here and around the world, knocking out food and other commodity prices.
British Chancellor Rishi Sink has finally announced some help for those struggling with rising energy bills. It is basically a loan that is repaid over a period of five years, on the assumption that energy prices will fall again. To help those in need. It will cost about £ 350 for most households, but bills are expected to double.
The total public spending by the Treasury on this financial cushion will be approximately bn 9bn, coincidentally equal to BP’s 2021 profit. Channel 4 reported this recently. BP has not paid any tax for the last five years..
Labor, Lib Dams and some unions continue to demand windfall taxes on these extraordinary profits, to help reduce people’s bills. Nicola Sturgeon also backed the idea last week.
A small group of environmentally hostile Tories are calling for an end to support for renewables using the price crisis, which is what will keep us at the mercy of international gas prices in the future. ۔
Energy firms have begun to compete, and the SSE recently said that just one of their new wind farms could knock out 70% of household energy bills.
Nuclear enthusiasts are unusually quiet, perhaps because of the embarrassing deal that means the new reactors at Hunkley Point are only viable if domestic bills are kept artificially high for the next 35 years. ۔
One of the reasons given for opposing the windfall tax is that the oil company’s profits are included in the pension funds but these changes are taking place due to low holdings in the funds, and many people are full of oil and gas investments. Are emerging as concerns about climate change grow.
If there is one thing we should learn from the current crisis, it is that producing gas in UK waters does not mean that cheap gas in the UK, companies do what companies do and for maximum profit. Sell their products internationally.
Still, there are rumors that the UK government is moving forward with six new oil fields, which will stop us from relying on fossil fuels instead of investing in domestic energy efficiency and accelerating the shift to renewables. Is moving forward.
The windfall tax is a good idea to help us in this immediate fuel price crisis, but we also need to change the system so that domestic energy bills do not depend on the international price of gas but remain stable from the local, regional mix. ۔ And nationally, we generate renewable energy here, in a country that is moving beyond fossil fuels.