Britain’s unilateral carbon tax should be scrapped before it causes blackouts, pushes up household bills and makes the UK uncompetitive, ScottishPower argues.
Keith Anderson, chief corporate officer, warns that the “carbon price floor” (CPF), which taxes companies for burning fossil fuels, will make Britain’s remaining coal plants “largely uneconomic by around the middle of the decade”.
With Britain’s spare power margin already forecast to fall as low as 2pc by 2015, the carbon tax will force more closures and “threatens to make us even more vulnerable to the risk of blackouts”, he warns.
Rollover for sound
Writing in Monday’s Telegraph, Mr Anderson also calls for a review of Britain’s £12bn programme to install “smart” electricity and gas meters in every home, suggesting costs should be cut to reduce the impact on consumer bills.
Several coal-fired power plants have already shut this year under EU rules to help curb acid rain and pollution. About a dozen plants remain operational and provide about 40pc of UK power; ScottishPower’s own Longannet coal plant powers about one-quarter of Scottish homes.
Axe carbon tax to keep lights on and cut energy bills, says ScottishPower chief