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cashinmattress

Tax On Electricity To Fund Carbon Capture Plan

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Tax on electricity to fund carbon capture plan

Capturing carbon emitted by coal power stations and storing it underground should be paid for through a tax on electricity prices, the Government has said.

Ed Miliband, the energy secretary, said four new "carbon capture and storage" trials would eventually add 2pc to bills through a levy on electricity suppliers – the day after the Government announced a tax on fixed telephone lines to fund high-speed broadband.

It is too early to estimate the total cost of the project, he added, but the Government hopes it could create 60,000 jobs and boost the economy by £4bn. Analysts predicted that the scheme might cost between £750m and £6bn, with some funding potentially from the European Union.

Four energy companies, BP Alternative, E.On, Peel Power and Scottish Power, are competing for contracts to build trial plants, using £90m allocated in the Budget to fund research.

Ian Parrett, an analyst at Inenco, said capturing carbon "had to be done" and could help lead a revival of the British coal industry.

"But we have concerns that no one knows whether carbon capture is commercially viable," he said. "And the Government isn't putting any money in at all. If all emissions reduction schemes add 2pc to bills, we are talking about electricity costs being hugely higher."

The Government is also forming a contingency plan for reducing emissions from coal-powered plants, since the technology behind transporting and burying carbon is not yet proven.

Simon Hughes, the Liberal Democrat shadow energy secretary, described the plans to build more coal power stations before it is known whether the technology works as "a huge gamble".

UK power tax to fund CCS

A levy on UK electricity prices could be introduced by 2011 to help pay for up to four carbon capture and storage (CCS) projects in Britain, an official in charge of CCS policy said on today.

In a consultation on clean coal technology published today the government proposes power suppliers help fund CCS development through a small tax on power, Reuters quoted Kathryn Newell, head of domestic CCS policy at the Department of Energy and Climate Change, as saying at conference in London.

Levy = tax.

CCS = cash cow.

Edited by cashinmattress

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Guest sillybear2

Such a tax has already been in place for years, it's called the Non-Fossil Fuel Obligation and Fossil Fuel Levy and pays for inflated feed-in tariffs for unproductive windfarms. Unlike the 5% VAT you won't see any of the above on your bill, it's leived upstream. If you're a business you also pay full 15% (17.5%) VAT on your bill and a further tax, the Climate Change Levy.

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The Chinese (and others) must be pissing themselves laughing.

I wonder which companies/assets they will buy up from the block in the coming years?

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It's such a relief that the carbon issue hasn't become a vehicle to takle money off people. Really, it is.

I echo the opinion that our competitors must be soiling themselves when they hear what we are doing to ourselves.

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Guest sillybear2
Is there anything to stop France selling me electricity direct, under the rights to use the National Grid through a shell company?

Err, they already do just that but they've rebranded Électricité de France to 'EDF' to avoid suspicion ;)

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Guest sillybear2
Crafty buggers the French, EDF indeed.

What next... purchasing British Energy to hide their building of French reactors on soon to be re-irritated English soil?

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What next... purchasing British Energy to hide their building of French reactors on soon to be re-irritated English soil?

Seems unlikely, you could source all the technical workers from inside the UK for Nuclear power plants and anyway how could they do a better job?, probably eating garlic and drinking red half the time.

Never fear, that's my motto.

Edited by Tom Peters

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Is there anything to stop France selling me electricity direct, under the rights to use the National Grid through a shell company?

French electricity prices are only slightly lower than the UK and then only because they are 'regulated'. The UK is one of the most competitive energy markets in the World and consequently we have some of the lowest (unsubsidised) prices.

'London energy prices "among the lowest in Europe"' [May 2009]:

http://www.utilityweek.co.uk/news/uk/elect...s-among-the.php

Household energy prices vary widely across the capital cities of the "EU-15" countries and London's are among the lowest.

That was the conclusion of research by E-Control, the Austrian energy regulator, and energy think tank VaasaETT.

The two organisations examined household electricity and gas prices across capital cities in the EU's western member states. They found that Londoners pay less than half the price for electricity and gas than their counterparts in some EU capital cities.

They found the highest electricity prices in Copenhagen, Denmark, where consumers pay 30.88 Euro cents per kWh. London was at eleventh place in the table, with users paying on average just 14.05 Euro cents. Paris, Stockholm, Helsinki and Athens were lower. The lowest price was 11.43 Euro cents.

The researchers found that gas prices were highest in Stockholm, Sweden, where households pay 13.71 Euro cents per kWh. London was the lowest priced of all the cities, with households paying just 4.26 Euro cents.

The figures included local taxes.

'Electricity Prices in France Under Investigation' [April 2009]:

http://www.french-property.com/news/money_...tricity_prices/

Electricity prices to business and individual consumers are regulated by the government, who decide each year by how much EDF can put up their prices.

These prices are generally lower than is being offered by their competitors, and it is likely the EU Commission considers that EDF may be keeping their prices artificially low in order to stall a liberalisation of the market.

The EU Commission is opposed to regulated prices, as they consider it a distortion of the market. They are placing huge pressure on France (and also Germany) to end its use in order to open up the market to other providers.

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Ian Parrett, an analyst at Inenco, said capturing carbon "had to be done" and could help lead a revival of the British coal industry.

I wonder who they are referring to when they "British Coal Industry" ?

It was my understanding under Thatcher, the British Coal Industry was destroyed and all the miners were sacked. Unless of course they mean foreign workers digging out the coal.

Does it not seem a little ironic that we spent the past 30 years destroying an industry and depriving an energy source we are now paying good money to see if it will work again.

Why do we put up with it. Give us a General Election please.

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What next... purchasing British Energy to hide their building of French reactors on soon to be re-irritated English soil?

I can see why the soil would be irritated, all those Frenchies hopping about.

Still as long as it's not irradiated, eh.

;)

Edited by apr400

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French electricity prices are only slightly lower than the UK and then only because they are 'regulated'. The UK is one of the most competitive energy markets in the World and consequently we have some of the lowest (unsubsidised) prices.

'London energy prices "among the lowest in Europe"' [May 2009]:

http://www.utilityweek.co.uk/news/uk/elect...s-among-the.php

Actually that was a bit harsh, your point stands prices for electricity are close in London and Paris so I misread

the report especailly tax and government.

'Electricity Prices in France Under Investigation' [April 2009]:

http://www.french-property.com/news/money_...tricity_prices/

Actually that was a bit harsh, I misread both prices for electricity and government intervention so you are

basically right.

I think you may have confused tax and price in $Cent/kWh or something. Edit: what's the alt code for Euros

From the study

hepi-tabes-combined.jpg

Edited by Tom Peters

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Guest sillybear2
I can see why the soil would be irritated, all those Frenchies hopping about.

Still as long as it's not irradiated, eh.

;)

:lol: I was just trying to spark a reaction.

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The economy is cratering, BoE rate lower than in its 300 year history, horrific net job loss happening every month.. and the idiots in charge are worried about how to implement new carbon taxes.

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The economy is cratering, BoE rate lower than in its 300 year history, horrific net job loss happening every month.. and the idiots in charge are worried about how to implement new carbon taxes.

But they _want_ to push the human race back into the Stone Age; so from their viewpoint this is a great success.

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carbon capture is one of the looniest ideas around

all it will do is make the countries that do it (and it won't be china) less competitive in the global marketplace = more jobs lost

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If there's a problem put a tax on it.

How to create govt policy.

Soon there will be a Revenue Think Tank Levy where we pay a tax to fund a quango to think of new taxes to raise money

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Seems like it was just yesterday that Gordo said he wanted to strengthen the laws against people abusing the elderly. Raising a tax on phone (life) lines and electricity is a much cleaner way of abusing the elderly. None of that throwing them down the stairs stuff.

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Plans to invest tax payers money in stuff they don't know if it works yet? Hey! a new shiney way to waste money.

At the risk of giving them ideas.

How long do you think it will take them to start charging us an extra tax to cover the cost of collecting all this tax from everyone? Seriously, it must be an expensive business.

Research such as this should be coming from Central funding (or possible even private companies)

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If you agree that the unemployed should work if they claim benefit, then why not issue them all with carbon capture nets?

I just know this is worthy of a Nobel prize

& don't argue!

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If you agree that the unemployed should work if they claim benefit, then why not issue them all with carbon capture nets?

I just know this is worthy of a Nobel prize

& don't argue!

How about taxing the unemployed for being unemployed. That would give them an incentive to work and be taxed.

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