CBI warns Government to stop taxing energy cash

The Government has ‘triple-dipped’ into the energy industry till because of the need to raise revenue, according to the CBI.
Taxes raised from the new look CRC, a proposed Carbon Floor Price and huge hikes on North Sea oil and gas production came under fire at the business group’s energy conference today (July 14).

CBI director general, John Cridland, said: “”Over the last year the Government has triple-dipped into the industry till because of the need to raise revenue.

“The CRC was meant to be green, aimed at encouraging energy efficiency by recycling financial incentives, well not any more it isn’t it’s just a cost.

“Government has undermined the North Sea oil and gas sectors confidence … we’ll see weakened North Sea investment, increased reliance on imported gas and higher prices for business and domestic consumers.

“On the carbon floor price, I am concerned that even if the price of carbon in the EU ETS rises, as is the case now, the carbon floor price will not necessarily fall correspondingly, it risks tipping energy-intensive industries over the edge.

Mr Cridland then echoed earlier CBI calls to scrap the CRC and introduce a higher ‘trigger price’ for natural gas and expanding field allowances.

On the carbon floor pricing he called for a rebate-based exemption linked to the energy intensive industries’ work on energy efficiency.