Energy companies rebuff govt’s £1bn poverty scheme

Government ministers are facing an uphill battle in its attempt to persuade the six biggest energy companies in the UK to sign up for a £1bn fuel poverty package understood to be announced later this week.

Baroness Vadera, the business minister, was drafted to the negotiations after the four foreign-owned energy companies refused to commit voluntarily to provide the funds, the Financial Times reports.

The energy companies are split over a proposed £150m levy on the industry for carbon permits under the European emissions trading scheme over the coming five years, totalling £750m to finance the measures.

Centrica, which owns British Gas, and Scottish and Southern Energy have given their agreements in principle but Npower and Eon, both owned by German companies; EDF, the French group; and Scottish Power, owned by Iberdrola, the Spanish energy group, have refused to sign up.

Further reading:

MPs break ranks over windfall tax

Windfall tax in the pipeline for energy companies?

Read the Financial Times story