Energy firms fear windfall tax

LONDON, Aug. 27 (UPI) -- U.K. energy firms have offered to boost their fuel poverty spending to avoid a windfall tax.

British parliamentarians have proposed that large energy companies, such as British Gas, NPower, ScottishPower, E.ON, Scottish and Southern, and EDF Energy, should pay a windfall tax on their larger-than-ever profits.

While Prime Minister Gordon Brown has debated the issue, the companies took the tax threat seriously and agreed to spend $450 million over three years to reduce the number of households that spend more than 10 percent of their income on heating and cooling.

The energy retail giants said they will work with the government to help families in need rather than have to pay a windfall tax they claim will lead to higher inflation.