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> keep all the energy company profits With the new energy profits levy introduced in July, the headline tax rate for oil & gas profits is now 65%, which is som
by jl6 4y ago
> keep all the energy company profits
With the new energy profits levy introduced in July, the headline tax rate for oil & gas profits is now 65%, which is some way off letting the energy companies keep their profits.
What the UK is doing is letting its energy companies make bank while prices are high, and taking a (temporarily enhanced) cut of that to fund a cost of living subsidy for consumers.
- pjc50 4y agoThis article is reporting EBITDA numbers: https://www.huffingtonpost.co.uk/entry/energy-prices-rising-suppliers-record-profits_uk_62f41502e4b0ab35e0afbcb7 https://www.huffingtonpost.co.uk/entry/energy-prices-rising-... What I would like to know is how that handles amortization? Especially for renewables where the capex is huge and the opex small. Is that a before or after amortization number? The prices quoted are absolutely crippling, though. I wonder if people would actually prefer a 1970s style rolling blackouts to having two thirds of small businesses go bankrupt.
- pbhjpbhj 4y agoExample, report in the papers 2 days ago local restaurant struggling to justify staying open as their energy bill (gas+electric) went up 7x (£60k last year, predicted £420k this year). So, that 65% tax on profits really isn't doing much, it's passed on to customers. Tax rises only make sense here with capped prices.