UK Government to Take Measures Over Extraordinary Profits in Energy Sector

United Kingdom
United Kingdom

The government of the United Kingdom will evaluate extraordinary profits in the energy sector and take all necessary measures to support the citizens, Chancellor of the Exchequer Nadhim Zahawi said on Thursday.

“The Chancellor added the Government continues to evaluate the extraordinary profits seen in certain parts of the electricity generation sector and the appropriate and proportionate steps to take,” the UK Treasury said in a statement.

On Thursday, Zahawi had a meeting with outgoing UK Prime Minister Boris Johnson, Business and Energy Secretary Kwasi Kwarteng and representatives of large energy companies like EDF, RWE, E.ON, Uniper, National Grid, Energy UK. The roundtable was devoted to the discussion of rising energy prices, government help for vulnerable households, diversification of energy suppliers and strengthening domestic energy security.

“We have already acted to protect households with £400 [$488] off energy bills and direct payments of £1,200 for 8 million of the most vulnerable British families. In the spirit of national unity, they agreed to work with us to do more to help the people who most need it,” Zahawi said.

All government officials present at the meeting stressed the need for the investment in North Sea oil and gas, and renewable sources of energy that would strengthen UK energy security.

Since 2021, energy and electricity prices in Europe have been rising rapidly following a global trend. After Russia launched a military operation in Ukraine in February 2022 and Brussels imposed several sanctions packages against Moscow, the energy situation deteriorated considerably. Since April 1, UK Office of Gas and Electricity Markets (Ofgem) raised the allowed maximum annual electricity bill limit from 1,400 to 2,000 pounds (from $2195 to $2440), with the next limit revision scheduled for October 2022.

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