Higher Energy Costs in Britain than in Europe
By Anne Lewis-Schneider
The price of energy is often blamed on the carbon price floor which will only get higher as time goes on. There is a school of thought that if VAT was scraped then energy prices would drop but that this is the wrong tax to target as a solution. There has been a strong call for a discontinuation of the carbon floor price that was introduced in April of last year by the government and this caused a huge jump in the price of energy which naturally through the ripple effect has impacted rather strongly on household energy bills.
All gas and coal fired stations that generate electricity have started being penalised with a £16 per tonne tax and this is set to rise to £30 per tonne by 2020 which will even further inflate the costs of energy to the point where it is no longer going to be viable to keep some power facilities open and they will have to be decommissioned. The energy generation companies will pass this cost onto the end user thus pushing up prices even higher.
Carbon prices in the UK are so much higher than those of the European Market to the point where Britain is paying four times the amount of carbon taxes in comparison with the EU. It has been said that the carbon tax price should be the same for all countries and this would go a long way towards reducing the costs of energy to the consumer who has been forced by ever increasing prices to make difficult decisions as many fall into fuel poverty. These are the opinions of a research fellow at the Centre for Policy studies.
Another opinion comes from David Mannering in Wiltshire who says that it is common knowledge that energy prices have rocketed and that the average British Household is Battling to cover gas and electricity bills with the increases that have been added. The Labour party pledges a price freeze if they are voted in at the next election and government has said that excess profits have pushed up prices. He suggests that instead of clutching at straws it would be better to look towards concrete evidence of what is causing the price increases and that these issues should be addressed. He further says that in his opinion the energy business is one of the most transparent with its regulators and watchdogs.
Each has their own opinion as to why and what is causing energy prices to escalate but the fact remains that it has done so and the consumer is feeling the strain of added costs on their dual fuel bills.
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