Green tax to give energy suppliers EDF £350m profits - 11/08/2010
Energy suppliers EDF are expected to earn around £350m a year in profits when the government introduces a new green tax, it has emerged.
When the government implements plans to artificially raise the price of carbon allowances traded in the UK to make it more expensive to run fossil fuel power stations, EDF will be a major beneficiary because it owns several nuclear power stations producing 13 per cent of Britain's electricity, reports the Telegraph.
Studies carried out by KPMG and the Policy Exchange reveal that the plans to raise carbon allowances would increase the cost of electricity to £7 per megawatt hour based on a carbon price of £29 per tonne.
According to EDF, a minimum carbon price of £29 would translate into an extra £40 a year in increased energy bills for each of Britain's 22 million households, which in turn could mean huge profits for the company.
However, a spokesperson for EDF told the Telegraph: "Until the proposed minimum price of carbon is known and the timing, any attempt to calculate any possible benefits for low carbon plants is speculation."
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