Dr Tony Cocker, the Chief Executive Officer of E.ON (FWB: EOAN) UK was highly critical of the government’s carbon floor price, when he spoke at a gathering of utility executives in London this week.

The carbon floor price, which purports to place a price on the carbon emissions produced by large firms, is to come into operation next month after a budgetary decision in 2011.
Dr Tony Cocker of E.ON
But Mr Cocker said, “It was put in to encourage investment in low carbon energy but it certainly doesn’t do that. It’s an electricity tax and we believe it should be scrapped.”

The E.ON chief was clearly unhappy at what he saw as a “ridiculous subsidy being provided for old nuclear and old hydropower and energy imports.”

He added that the government ought to be honest and call it an electricity tax as it does not encourage low carbon technology as had been intended.

“Let’s not pretend that this is an incentive to new investment- it’s a poll tax equivalent on all energy customers.” he said.

Mr Cocker also pondered whether it was right that the present generation take on the huge burden of investment needed to create the country’s future infrastructure.

“Is it fair that this generation pays for the investment that will only be reaped by future generations? Is that fair?

Mr Cocker was speaking at the Marketforce ‘Future of Utilities’ event.

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