8 September 2008

tax energy profligacy not profits


It's good to see that Gordon Brown has apparently ruled out direct cash help for fuel bills and will instead concentrate on energy efficiency measures for homes which is by far the more sustainable solution. But there is another answer - tax energy profligacy not profits.
The government should change the way the energy industry is taxed. Instead of taxing profits the government should tax energy inefficiency. A company whose customers use less energy should be taxed less. Energy companies would then have an added incentive to help with a nationwide insulation programme.