News: Energy price-drop urged

Labour backbenchers are renewing demands for energy companies to pass on reductions in fuel costs to customers or face a windfall tax. Skip related content

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Energy price-drop urged

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Energy price-drop urged

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Video: MPs are calling for a windfall tax on energy firms

Increases in the wholesale price of gas and oil has seen customers bills soar while profits for the 'big six' utility firms have risen by around 100 per cent.

Nineteen MPs have signed a parliamentary early-day motion tabled by Leeds North East MP Fabian Hamilton urging the Government to impose a windfall tax on the "massive unearned windfall profits" of the energy companies.

The MPs want a levy similar to that that promised by Barack Obama which the US President-elect suggests could deliver a $1,000 rebate for all working families.

Around 100 Labour MPs signed an open letter calling for the tax in the summer, but Prime Minister Gordon Brown resisted the pressure, opting instead for a £1 billion package of assistance with fuel efficiency measures.

The new motion voices "grave concern" that average household energy bills in the UK are now topping £1,200 a year, while energy providers' profits have soared from £557 million in 2003 to over £5 billion now.

A spokesman for the Energy Retail Association has hit back at the motion stating that profits are essential to investment and the security of energy in the future would be put at risk by any windfall tax.