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Energy firms bemoan tax duties

Energy firms bemoan tax dutiesDespite the recent price hikes brought in by many UK energy suppliers, a number of providers are urging the government not to implement regulations that will see them paying higher taxes.

The calls come ahead of Alastair Darling's Budget announcement next week, which some suppliers predict will include a windfall tax on energy companies' earnings as a result of the public outcry following their most recent price increases.

British Gas said that the new tax would jeopardise investment in alternative energy projects, while Drax - which owns the UK's largest coal-fired power station - also stated that such a levy would deter it from pursuing long term investment projects.

A similar tax was levied successfully when New Labour came into power in 1997, the Guardian reports. The scheme helped to raise some £5.2 billion for the New Deal programme to get more people into work.

New government proposals have also recently been unveiled that are designed to help families struggling with energy bills. A new coupon scheme would provide discount vouchers towards their fuel spend, which now amounts to around £1,000 a year per household on average.

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