Tuesday, March 08, 2011

political electricball

elect-profits

via

Now this would seem quite reasonable, on the face of it. Tax the companies if they are making 'excessive' profits.

But as the information shows below on this blog, if the profits are good it is mainly because of efficiency compared with the rest of EU producers. So, extra tax on efficiency?

The real culprit for high energy costs in Sweden is NOT, NOT the producers! It's the taxes! Energy taxes were possibly a good idea to help encourage people to save energy – but the idea floundered 7 years ago when electric costs nearly doubled in a month and all because we were exporting so much to other, less efficient, EU countries who were not saving energy. In effect we were paying for the failings of other countries! In that environment, the raison d'etre for energy taxes was undermined in the public's perception.

So, dearest Minister, only blame the companies after the government has accepted it's share of the blame.

Reduce the taxes to consumers to match the EU average (or lower), increase the taxes on exports , then – and only then – would it be fair to look at 'excess profits' within the producers/suppliers.

Sweden is enjoying good growth in it's economy, now is a time to invest in that growth with cheaper energy WITHIN Sweden

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