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Energy Minister In Row Over Cost Of Taxes
Energy Minister Michael Fallon has sparked a row over the impact of Government energy taxes after appearing on Sky News.
After SSE became the first firm to hike prices ahead of the winter , Mr Fallon insisted only a "small amount" was added to bills because of Government measures.
He told Sky the cost of measures on energy efficiency and warming the homes of the elderly and vulnerable was "only 4 or 5%".
"There's a small amount added to each bill to help protect the most vulnerable, to keep their homes warm this winter and that's extremely important. The bulk of this [rise] is from the energy companies," he said.
He added: "For energy efficiency and to help keep homes warm for the most vulnerable, only 4 or 5% of your bill goes on that so a very small piece on top of it."
But he then clashed with Tony Keeling, SSE's director of customer services who came on Sky to defend its controversial price rise.
Mr Keeling blamed the hike on three causes - the global cost of energy, the rising cost of getting energy to UK homes and Government schemes.
"About 10% of everyone's bill is effectively extra tax on top of the VAT," the SSE executive told Eamonn Holmes.
Pressed to clarify his original comments, Mr Fallon agreed that the total hit to bills from the Government was "just under 10%".
He said the original figure he gave was for energy efficiency and future investment but conceded "another amount" was also charged to pay for keeping the elderly warm.
Mr Keeling backed the Government's schemes but suggested they should be paid for through general taxation, instead of added to energy bills.
This would allow for it to be targeted at the better-off, he argued, saying: "At the moment it is a blanket charge and some people can't afford that."..."
http://uk.news.yahoo.com/energy-minister-row-over-cost-taxes-095340883.html#bON9tvkIgnorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
