UK energy firms call on chancellor to boost carbon tax
Two of Britain’s biggest energy companies have called on Chancellor Philip Hammond to strengthen a carbon tax that has driven a dramatic collapse in coal power generation, arguing it is essential for the shift to cleaner energy.
SSE, the UK’s second largest energy supplier, and Drax, which runs the country’s biggest power station in North Yorkshire, urged the chancellor to use his autumn budget to shed light on the tax’s fate into the 2020s.
The government said last year that the level of the carbon price floor – the minimum price for greenhouse gases emitted by power generators – would be frozen until 2020, but disappointed those who had expected long-term plans to be laid out.
“We urge you to ensure the UK has a robust and strong carbon price,” wrote SSE and Drax in their letter.
The intervention by two major firms comes after a report warned that without a commitment to a strong carbon price, coal could enjoy a last hurrah in the early 2020s.