Electricity: Domestic Pricing Debate
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Lord Vaux of Harrowden
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Electricity: Domestic Pricing
Lord Vaux of Harrowden Excerpts(1 day, 7 hours ago)
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Lord Whitehead (Lab)
Imposing an extra windfall tax, on those elements of the system that are within the renewables orbit but outside the CfD arrangements, takes away the excess profits that those elements make as a result of being aligned with gas in charging those volatile prices. So it is a very sensible thing to do, to make sure that excess profits are not taken from consumers but instead reside with them as lower prices.
Lord Vaux of Harrowden (CB)
To follow up on that, can the Minister explain how a windfall tax paid to the Treasury ends up reducing people’s bills?
Lord Whitehead (Lab)
The effect of the windfall tax is, essentially, to start returning some of those excessive bill contributions back to bill payers so that their overall bills are less than they otherwise would be.