when 'going green' can be dangerous

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political electricball

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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

Energy tax reduction?

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Now , before you go shooting off at the electric companies, read this entry I made in TheLocal on January 11th

" According to the E-control and VassaETT EU price index (including taxes) for Jan 2011 the average generation and distribution costs account for 75% of the bill. In Sweden, however, these "so-called greedy" power companies account for only 65% of the bill. This is remarkably efficient considering the geography and population size/distribution in Sweden".

So it costs less to generate and distribute in Sweden than in the neighbour Nordic countries.

The differences are in the taxes!!

"The high price has prompted enterprise and energy minister Maud Olofsson to float the possibility of reducing the energy tax". via