Britain’s proposed changes to its planned carbon tax from 2013 remove a loophole that would have allowed coal stations to stockpile fuel to avoid paying, according to Bloomberg Industries. “It removes a loophole” that may have allowed generators to store coal before the tax comes into force, Chris Rogers, a utilities analyst at Bloomberg Industries in London, said today by telephone. It makes it easier to implement and administer the tax and enables the government to more easily collect the revenues, he said. European Union emissions allowances have lost almost 50 percent of their value this year as fears of a recession damp demand and the bloc prepares to boost supply. U.K. government revenue is likely to rise as the difference between its so- called carbon floor price and EU allowances widens. The tax for the 2013 to 2014 financial year will raise 740 million pounds ($1.15 billion) for the government, according to documents posted on the Treasury Department’s website in March. It was fixed in March at 4.94 pounds a metric ton. The tax may rise to 9.61 pounds in the following year and 16.70 pounds in the year from April 2015, according to similar calculations since EU prices have fallen, said Lakis Athanasiou, an independent utilities analyst in London formerly at Evolution Securities Ltd.
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