UNISON calls for windfall tax after

British Gas profits soar

(21/02/08) UNISON called for a windfall tax on excessive profits today, after energy supplier British Gas reported annual profits of £571m at its residential arm - just weeks after hiking its pricesd for gas and electricity by around 15%.The news of the profits - which are up from £95m in 2006 - follows a UNISON and National Right to Fuel Campaign demand for an official inquiry into fuel profits.And Centrica, the parent company of British Gas, has reported a 40% rise in operating profits to £1.95bn. Centrica has increased its full-year dividend to shareholders by 17% to 13p a share.UNISON national officer Steve Bloomfield said: "It is clear that the UK's energy market is not operating in the public interest."It's a scandal that a growing number of people are suffering from genuine fuel poverty – including many families, elderly and disabled people – when energy companies are making record profits. "We need a windfall tax on profits to put a stop to this profiteering."A new report, Gas and electricity costs to householders, which has been produced by Cornwall Energy Associates and co-sponsored by UNISON, shows how much extra ordinary customers are having to fork out to fund this profits boom. The report revealed that spending by households on gas and electricity increased by £8.2bn between 2003 and 2006, but companies' costs increased by £5.9bn - only £4.5bn of it due to higher fuel costs.Nearly 30% of the extra spending by customers has gone in increased profits amounting to £2.3bn – at a time when the government is telling public service workers to tighten their belts and accept 2% pay limits.