Combined with high gas prices, the extra funding – which corresponds to a subsidy, activists say – could be a strong incentive to restart fracking companies if the moratorium in the UK is lifted, which could happen. already this week. Oil and gas companies will likely benefit, πιθαν 4 billion, from a gap in the government’s unexpected tax, which allows for exemptions for companies investing in new fossil fuel resources. The legal advice provided to the Uplift campaign group suggests that fracking companies will also be eligible for this incentive, as the Unexpected Tax – officially known as the Energy Profit Contribution – is currently written. Tessa Khan, director of the Uplift campaign group, said: “Despite the historic cost of living crisis, the government is trying to experience another huge subsidy for oil and gas companies. The energy levy is supposed to ease the burden of growing energy bills for UK households, but this investment gap allows companies to reduce their taxes by building more polluting, unsustainable oil and gas projects. “It is outrageous that fracking companies can benefit from this subsidy when fracking – like all oil and gas drilling – does not provide safe, affordable energy for people in the UK.” The Labor Party said the vacuum meant that oil and gas companies would receive 20 times more incentives for taxpayers than renewable energy companies. Analysis of government data by the Labor Party shows that about 4 4 billion could flow into oil and gas companies under the unexpected tax and “overdraft” tax credit gap. According to Labor analysis, the new rules mean that for every £ 100 invested by an oil and gas company in the North Sea, the company receives 91 91.50 from the taxpayer. For every 100. Invested in renewable energy, the renewable energy company receives £ 25, but this will drop to £ 4.50 from April 2023. If these incentives are extended to trailers, it could be enough to change the fracking economy to new features. Labor told the Guardian that for fracking companies the rules would mean that out of every £ 100 spent on fracking, only 50 7.50 would be paid by the fracker, with the rest being reimbursed by the taxpayer. Ministers will face key choices this week on whether to lift the moratorium on fracking, as the British Geological Survey has been asked to prepare a report on fracking potential in the UK, which is expected by Thursday. Many on the right of the Toris party have loudly supported the fracking, and Boris Johnson is seeking their support to bolster his troubled prime minister, who has been weakened by two election defeats. Kahn said: “How can the government justify the effective burden on new oil and gas projects when these industries are making record profits and destroying the climate?” The simple answer is that it can not. “ Ed Miliband, the shadow business secretary, said: “It is a shame that the government is repaying billions of pounds of taxpayer money to the oil and gas companies themselves that made record profits during this energy crisis. This gift will either go to oil and gas projects that would have happened anyway, or give incentives for new projects that will make no difference to consumer accounts, take years to bear fruit and lead a coach. and horses in our climate commitments. “[This could also] end up throwing public money at dangerous, unpopular and expensive fracking projects. “This is a government with the wrong priorities.” A spokesman for the Treasury Department told the Guardian: “As set out in the British Energy Security Strategy and with Putin’s invasion of Ukraine showing its value, the North Sea oil and gas sector will be crucial to its domestic energy supply. . and security for the immediate future – so it is right to continue to encourage investment while continuing to focus on reducing emissions. We also ensure that the UK continues to invest in clean energy through incentives such as over-discounting, the UK’s competitive R&D tax system and the Contracts for Difference system. “
