Quote:
Originally Posted by nomadking
The money invested has to be repaid and, that reduces taxable profits. Eg Amazon is spending so much investing, it takes time to have a taxable profit in the UK. Amazon was making losses for a long time, because of their level of investment.
If you borrow, the capital has to be repaid.
It can take years to see an overall profit from any investment.
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If we follow your model then we will have zero investment and we will have to import 100% of our energy needs which is not practical.
The regulator should ensure that it is worthwhile energy generators investing in generation capacity and this will include the cost of borrowing. To be fair, this has been very low over the last 10 years.
This is not the same as companies like Amazon which have sought to build up global scale very quickly before competitors copied their idea in new markets. They've sacrificed short-term profits for longer-term ones hoping investors will be happy with an increased share price instead of dividends.