Treasury toll blamed for energy price hike

Gas and oil companies slam policymakers for higher taxes imposed on energy providers feeding through to consumer bills

Written by David Jetuah

Higher tax tolls imposed by the Treasury account for almost 50% of last week's rise in household energy bills, power companies have claimed.

In response to the price hikes announced by npower, the Chancellor summoned the head of energy watchdog Ofgem, Alistair Buchanan, to a meeting at the Treasury to explain what can be done about rising bills.

One company told The Telegraph yesterday: 'Mr Darling can grandstand all he wants, but we will not let him forget that a sizeable chunk of price rises is due to higher "green" taxes and other costs introduced by the Treasury.'

It is estimated that rises in the three main green taxes this year, including the Carbon Emissions Reduction Target, will add £28.50 to annual household bills. npower's price rise will raise its average annual electricity bill by £64.

A source at another energy company said: 'No one is against green taxes. Most of us are in favour. But it's a bit rich for a chancellor to give the impression that we're all profiteering when the Treasury is putting up our prices.'

Further reading:

Treasury needs more cash to plug black hole

Enjoyed this article? Help spread the word:

Comments

Reader comments for this story

White papers

Related jobs

Spotlight

Richard Atkinson, FD of All England Tennis Court

Profile: Richard Atkinson, FD of All England Tennis Club

As Wimbledon reaches a heady climax, the FD of All...

PwC 10-year anniversary special report

Relive how the controversial mega-merger of Price Waterhouse and Coopers...

Make partner fast with YP

The latest edition of Young Professional features our definitive guide...

Find your next job

Find your next job
Salary Checker

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Search white papers

Search white papers

Have your say

Has the credit crunch made you fear for your job?
Yes, my company says jobs will go
Maybe, if things get worse, I could be hit
No, business is quite stable

Job of the week

More finance jobs...

Your next job