I always wonder about Simon Jenkins. He writes crisply, with an air of massive authority, and the Graun gives him absolutely free rein. Sometimes I like his stuff; other times he goes pompous soft-left and it's annoying.
Anyhow, today he's gone 100% populist pig-ignorant.
Forget a gimmicky windfall tax. Energy companies should be forced to slash bills instead ... The answer must be to slash the price cap and demand the companies spend their profits directly on cutting bills. The wimps of Ofgem, the industry regulator, must become tigers. They know that these companies – and their executives – are now wealthy. They know investment is not at issue: they are distributing massive profits and buying back shares. Unless the west goes collectively mad, energy supplies, and profits with them, will return to normal. For now, the priority is simply to bring the price of energy down, and at the government’s command. Yes, all consumers, rich and poor, would benefit; but it would not cost the exchequer a penny, and it would instantly relieve the cost of living at source.
Well, that's embarrassing. It would seem he thinks it's energy suppliers who are making the windfalls: seeing that it is only they who are subject to the cap and regulated by Ofgem. Has he somehow not noticed that suppliers have been dropping like flies?
Making his excuses for him; perhaps he has primary producers in mind? Nothing to do with Ofgem or the retail cap, mind; but OK, well invent a new cap on their prices and for one thing you can say goodbye to all our imports, at the very least. That's 60% + of our gas.
I do look forward to his scheme for capping the astonishing profits of renewable generators still on the ROCs subsidy, though ... Seriously: if people like Jenkins understand as little as he does, both on the principles and the details, some very strange populist cries are likely to be gaining traction, with the scope for some particularly crass political decisions being made.
What a plonker.
ND
9 comments:
Jenkins is the go-to kite flyer for the Graun/BBC (two cheeks of the same arse) & Islington
+1
If anything it's the Government raking in a tax bonanza and blaming bogeymen for it.
The tax taken on your petrol is not "75%" as oft stated but 300% of the cost price.
I don't think he has completely lost it.
He was too lazy to look up the difference between e.g. companies who get gas out of North Sea (making windfall profits and ripe for a windfall tax) and the middlemen (who as you say are dropping like flies*).
* Flies don't drop. Some in our kitchen fly round for a whole day, refuse to leave by the open door and appear to be resistant to being slapped with a damp towel.
"Seriously: if people like Jenkins understand as little as he does, both on the principles and the details, some very strange populist cries are likely to be gaining traction, with the scope for some particularly crass political decisions being made."
The entirety of government is full of people like him who know absolutely nothing about anything but think they have the right to tell everyone else what to do.
"The entirety of government is full of people like him who know absolutely nothing about anything but think they have the right to tell everyone else what to do."
That is the fundamental problem of politics. People like that will fight and scheme to get power. Mugabe is a classic example.
Are they badly brought up, or is it inborn ?
Don
Perhaps gov.uk could spend less money, which would leave more in people's pockets/wallet and they could then afford to pay for their energy.
@Mark Wadsworth: "making windfall profits and ripe for a windfall tax"
I honestly have no idea what a windfall profit is or why it, or any any other type of profit, should bear a higher tax rate, except perhaps for monopoly profits.
Could you please let us know what you believe a windfall profit is and why it should be taxed more?
Sir Simon Plonker has always been a bit of a Jenkins.
"Windfall Tax" is obviously a subtle allusion to the fact that when the wind falls we need more gas. I claim my £5.
£5?? for that, you deserve a life subscription!
Plus a half of bitter when we next have a Blog drinks. (By then, it'll be worth more than either: I'll cash in my pension and buy it for you myself)
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