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Green Subsidies Should Be Paid Through Tax

Monday, November 26, 2018

 

GMB CALLS FOR GREEN SUBSIDIES TO BE PAID FROM TAX AFTER SPARK ENERGY BECOMES LATEST FIRM TO COLLAPSE

A total of nine companies have now gone to the wall adding an expected £100 million onto household energy bills thanks to this lax Ofgem scheme says GMB Union

GMB, the energy union, has called for the failed market reforms to be scrapped after two more independent energy start-ups went bust.

Spark Energy and Extra Energy have gone belly up this week, bringing the total of companies that have collapsed since November 2016 to nine.

Between them, Spark and Extra had not paid millions in renewable energy payments which will now have to be paid via a levy on consumers’ household energy bills - meaning all households will pick up the bill for customers getting cheap deals.

The total cost of the eight collapses is thought to be more than £100m. [1]

GMB is calling for Ofgem to set strict rules for the granting of licences to trade to independent energy companies.

The nine companies to go bust since November 2016 are:

·         GB Energy 

·         Future Energy

·         GEN4U

·         Iresa 

·         National Gas and Power

·         Ephase Energy (entered administration)                        

·         Usio Energy                                                                                                                                   

·         Spark Energy

·         Extra Energy  

Justin Bowden, GMB National Secretary, said: 

“These failed market reforms in which all households pick up the bill for customers getting cheap deals must be abandoned immediately. 

“A total of nine companies have now gone to the wall adding an expected £100 million onto household energy bills thanks to this lax Ofgem scheme.

“It's easy to be generous with other people's money, and that's exactly what has been happening in energy to pay for ‘market reform’ in a sector dominated by oligopoly.    

“The fairer solution is for the various green subsidies on renewable energy to be paid for from tax, particularly as the latest collapses in these independent energy start-up companies are unlikely to be the last. 

“GMB is calling for Ofgem to set strict rules for the granting of licences to trade to independent energy companies.”

ENDS

Contact: Stuart Fegan on 07912 890434 or GMB Press Office on 07958 156846 or at press.office@gmb.org.uk

Notes to Editors:

[1] https://www.thetimes.co.uk/article/households-face-huge-bills-for-energy-failures-7jksc30mr

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