Energy is a huge political and household issue. The dual fuel bill for an average household is £1315 per year, and that’s before the current round of price increases.
What we’ve learned this week is that Secretary of State Ed Davey wears a jumper to keep warm at home, and that British Gas is increasing its prices by 9.2%. We also learned from the Scottish Nationalists that if Scotland voted for independence and if they were to be in Government, they would cut prices by removing the social and environmental obligations on energy suppliers, and instead pay for fuel poverty programmes with the proceeds from carbon taxes.
These carbon taxes come in two forms, and are levied on the industries emitting the largest amount of greenhouse gasses, principally carbon dioxide. The idea is to push these industries into using non-polluting energy – energy generated from wind and tides and other renewables, and from nuclear sources. The EU Emissions Trading Scheme is one of the carbon taxes and applies to all members of the EU, though the revenues go to the national governments. Continue reading “What on earth are carbon taxes?”