Record energy prices could rise even more as the government reportedly plans to introduce new “green” taxes on gas.
A new strategy will be announced before the Cop26 climate conference in Glasgow next month, which commits the government to lower electricity prices and impose a tax on gas bills to finance low-emission heating, according to The times.
It comes after Prime Minister Boris Johnson said Britain aims to produce “clean electricity” by 2035 as part of a goal of achieving net carbon emissions.
Business Secretary Kwasi Kwarteng has insisted that decarbonising Britain’s power supply would ensure households are less vulnerable to fluctuations in fossil fuel markets.
Ministers will release a series of consultations before moving forward with the plan, which is likely to start in 2023 and could add £ 170 a year to gas bills, the newspaper reported.
A spokesman for the Department of Business, Energy and Industrial Strategy told Gange: “We will soon determine our upcoming heating and building strategy. No decisions have been made. ”
Several Tory MPs have joined Labor and the manufacturing industry to call on the government to support factories and companies struggling with rising energy bills.
Kwarteng met with industry leaders on Friday, but they could not find any solutions, reports the BBC.
Labor has accused the government of denying gas prices, which have risen by 250 percent since January.
The price cap ‘does not fit the purpose’, say energy company executives
The leaders of energy suppliers have set the price cap for consumers as “not fit for purpose”.
Today, they warned that customers will pay a “huge cost” for companies that can not stay afloat as gas prices reach record highs.
Paul Richards is the CEO of Together Energy, which he said is currently losing.
He told BBC Radio 4’s Today program: “The price cap as a mechanism is not suitable for the industry, nor is it suitable for customers.
“When the reverse situation arises and the wholesale price starts to fall sharply, the price that will be passed on to customers in April can feel like a very, very bad deal, whereas the price ceiling currently feels like a price that is also too great good to be true.
“Although customers are protected in the short term, I think we are looking at somewhere between £ 1bn and £ 3bn in costs that will be spread back to businesses and households as a result of these failed suppliers.”
Utilita Energy’s non-executive chairman Derek Lickorish suggested that the ceiling be revised four times a year.
He said: “The cap is not suitable for the purpose … The government needs to look at how they can support not only energy suppliers but also large industry.”
Lamiat SabinOctober 9, 2021 10:30 AM
Socialist MPs reiterate calls for nationalization of energy
Calls for the government to nationalize the energy industry have intensified as the gas price crisis continued this week.
Today, former shadow cabinet minister Jon Trickett said: “Britain should not save energy companies a single penny. We should immediately take them into public ownership. ”
Former Labor leader Jeremy Corbyn and MP Claudia Webbe both said earlier this week that “it’s time” to nationalize gas and electricity suppliers.
Labor for a Green New Deal said nationalization is the “only solution” for energy prices to reach record highs.
People in France have been partially protected from rising electricity prices in Europe because the vast majority of the country’s electricity comes from government – controlled nuclear power plants.
Last week, the French government said it was able to postpone increases in energy prices until next April.
Most of Britain’s electricity is produced by power plants that burn natural gas.
Lamiat SabinOctober 9, 2021 10:10 AM
Weekend newspapers’ coverage of the gas price crisis
This is how the national newspapers covered the gas crisis on their front pages:
Lamiat SabinOctober 9, 2021 09:51
The EU needs more gas from Russia, Kremlin-controlled media say
Russian state-owned media have taken the opportunity to report that Western Europe will not be able to survive the winter without an extra supply of natural gas from Russia.
London-based energy research and consulting firm Wood Mackenzie has stated that the only way for “Western Europe to cope with a cold winter would be through a further influx of Russian gas,” Sputnik News reports.
Gas reserves built up over the summer in Europe are expected to be 78 percent by the end of October – a record low, the website says.
Sputnik News adds that the Russian state-owned gas company Gazprom supplies more than 40 percent of natural gas in the EU.
In France, domestic nuclear power accounts for the majority of supply.
European leaders have been in long-term negotiations with Russia and Gazprom to increase gas supply through the Nord Stream 2 pipeline, which runs from Russia to Germany via the Baltic Sea.
Critics have said Russian President Vladimir Putin is arming gas supplies to make the EU more dependent on Russia.
Earlier this week, Prime Minister Boris Johnson’s spokesman accused Moscow of “suffocating” supply to force prices up and put pressure on the EU.
Lamiat SabinOctober 9, 2021 09:30
Fracking advocates say the gas price crisis is ‘a bizarre state’
Advocates for fracking urge the government to look again at shale gas extraction, arguing that the controversial method could provide energy to the entire country for decades.
In 2019, Prime Minister Boris Johnson announced a moratorium on hydraulic fracturing of underground slate among concerns for safety, the environment and earthquakes it could trigger.
As reported by I newspaper, industry group Onshore Oil and Gas said the global gas price crisis was a “bizarre state” when gas under England could “cover Britain’s gas needs for 50 years”.
Friends of the Earth anti-fracking activists said fracking was “rightly stopped” two years ago, and Frack Free Lancashire said fracking “is still as unacceptable as ever given the geological and environmental conditions in Britain.”
Tony Bosworth, energy campaign at Friends of the Earth, told the newspaper: “The way out of the current gas crisis is not to produce more gas, but to isolate people’s homes and increase the spread of renewable energy to reduce our dependence on animals and pollutes fossil fuels. ”
Lamiat Sabin9 October 2021 09:10
Manufacturing sectors are ‘interconnected’, the group said during increases in gas costs
Various production areas are “inherently connected”, and one of the failures will affect the entire industry, said EIUG President Dr. Richard Leese.
He told BBC Breakfast: “We have already seen the tip of the iceberg with fertilizer consequences – energy-intensive industries produce goods in all supply chains, from minerals to stationery.
“All this is inherently connected, for example when the fertilizer factory closed or stopped, CO2 is not just necessary for food – we use it in the cement industry to suppress the risk of explosion.
“These goods are used throughout the supply chain, it’s all connected, so if an industrial sector is affected, we’re all affected.”
Lamiat SabinOctober 9, 2021 08:50
The government’s efforts were needed ‘right now’, the industry group says
Measures to tackle rising energy costs are needed “right now,” the chairman of the Energy Intensive Users Group (EIUG) said.
Dr. Richard Leese told BBC Breakfast: “Everywhere in the energy-intensive industries they are equally affected.
“We have seen cuts in production in the steel and fertilizer sectors – it has had an impact on the supply chains of the industrial supply chains and domestic supply chains.
“What we have done is put a winter package of measures to the government that we believe are necessary to prevent supply chain outages from recurring.
“It’s absolutely necessary right now – gas prices are at an unprecedented level and the companies that manufacture the goods we need are trying to operate under these unprecedented conditions.”
Lamiat SabinOctober 9, 2021 08:30
Energy prices ‘unsustainable’, factory companies tell the minister
British companies fear factory closures within weeks as fuel prices rise.
Yesterday, a business secretary Kwasi Kwarteng was warned that electricity costs five times their normal level “were not sustainable” for companies in an emergency conference call with heavy industries.
Andrew Woodcock and Anna Isaac has the full story
Lamiat SabinOctober 9, 2021 08:05
Good morning. Welcome to The independentis rolling energy crisis coverage.
Stay tuned as we bring you the latest updates.
Lamiat SabinOctober 9, 2021 07:58