As power companies are making too much money, the argument from the popular press goes then they should be taxed on the windfall profits. Readers will have seen this argument repeated periodically. It is a silly one.

Utilities are faced with huge challengers if we are to move to a low carbon economy and they will need to invest, and invest heavily not just in developing and sourcing clean energy but in technologies that help reduce and measure consumption of energy. Therefore rather than push for windfall taxation, much better to prescribe to energy companies what is required from them and by when, incentivising them to invest against targets on renewable energy sources and energy measurement.

this requires good regulation in the sector, which has not always been the case, a clear idea of what the renewable agenda is, and this Labour Government is yet to provide that and a preference towards certain types of renewable energy sources and that is also not clear. So there is work to do.

Going forward, the UK will need utilities that are committed to sourcing their energy from renewable that in the current jargon are sustainable or clean. Investment in the sector, we must all remember is in long cycles that need to withstand the whims of day to day politics.

Windfall taxes won’t help, they create their own distortions and should be dropped. Make utilities invest in clean energy solutions and if you don’t like their profits, simply use less energy. We’ll all win that way.