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UK Truss says energy firm profits aren't evil as bill forecasts soar

Article author:

Reuters

Reuters

William James and Susanna Twidale

LONDON — UK leader candidate Liz Truss, frontrunner to become prime minister, says energy giants should be held accountable for their profits should not be considered dirty or bad.

This month, UK energy giants Centrica, BP and Shell posted strong profits, largely due to high wholesale gas prices, prompting opposition and charity groups to criticize the government. There are new calls for tougher windfall taxes for energy companies.

"Of course, when energy giants are in an oligopoly, they should be held accountable, and I will ensure that they are strictly held accountable," Truss said. Told. Members of the Conservative Party will vote over the next few weeks to determine the country's next leader.

"But the way Conservatives should not abuse the word 'profit' as if it were something dirty and evil," she said. .

The government introduced her 25% windfall tax on the profits of oil and gas producers in May. Since then, wholesale gas prices have more than doubled.

Analysts at consulting firm Auxilione say the price ceiling, which will be updated every three months from October, will reach £5,038 annually by April 2023 as energy prices soar across Europe. I predict that it is possible. The current cap level is £1,977.

Finance Minister Nadim Zahawi said on Thursday that energy companies had agreed to work with the government to help those most in need.

"There seems to be little recognition of how impossible the task really is and how little control energy companies and governments have over this in such a globally affected market. ' she said analysts at Auxilione. ($1 = £0.8203) (Reporting by Susanna Twidale and William James, Editing by Jonathan Oatis and Mark Heinrich)