UK energy crisis alive: Government must act ‘now’ on gas prices



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Factories and companies struggle with rising energy bills

(PA)

Register energy prices It could increase further as the government is said to be planning to impose new “green” duties on Gas.

A new strategy will be published before the COP26 climate conference in Glasgow next month, which commits the government to a price cut electricity and a tax on gas bills to finance low-carbon heating, according to times.

It comes after Prime Minister Boris Johnson said Britain aims to produce “clean energy” by 2035 as part of the goal of achieving net zero carbon emissions.

Business Secretary Kwasi Quarting insisted that decarbonizing the UK’s energy supply would ensure households were less exposed to volatility in fossil fuel markets.

The newspaper reported that ministers would issue a series of consultations before moving forward with the scheme, which is likely to start in 2023 and could add £170 a year to gas bills.

A spokesperson for the Ministry of Business, Energy and Industrial Strategy told times: “We will develop our next strategy for heat and buildings soon. No decisions have been made.”

Several Tory MPs have joined the Labor Party and manufacturing industry in calling on the government to support factories and companies struggling with rising energy bills.

Mr Kwarteng met industry leaders on Friday but failed to find any solutions, the BBC reported.

Labor accused the government of denying gas prices, which have risen 250 percent since January.

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Energy chiefs say price cap is ‘not fit for purpose’

Energy supplier chiefs criticized the price cap for consumers as “fit for purpose”.

Today, they warn that customers will pay a “huge cost” to companies that fail to stay afloat as gas prices soar to record levels.

Paul Richards is the CEO of Together Energy, which he said is currently taking losses.

“The price cap as a mechanism doesn’t work for industry, it doesn’t work for customers,” he told BBC Radio 4’s Today programme.

“When the opposite situation arises and the wholesale price begins to drop sharply, the price to be passed on to customers in April may seem like a very bad deal, while at the moment, the cap price seems like a price too, to be honest.

“Although customers are protected in the short term, I think we’re looking at between £1 billion to £3 billion in costs that will again be distributed across businesses and households as a result of these failed suppliers.”

Utilita Energy’s non-executive president, Derek Likurich, has suggested that the cap be revised four times a year.

He said, “The cap is not fit for purpose… the government should consider the means by which it can support not only energy suppliers but also big industry.”

Lamiat SabineOctober 9, 2021 10:30

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Socialist MPs repeat their calls for the nationalization of energy

Calls for the government to nationalize the energy industry intensified as the gas price crisis continued this week.

Today, former shadow cabinet minister John Trickett said: “The UK must not save energy companies a penny. We must take them into public ownership, immediately.”

Both former Labor leader Jeremy Corbyn and MP Claudia Webb said earlier this week that “the time has come” to nationalize gas and electricity companies.

The Labor for a Green New Deal said nationalization was the “only solution” to energy prices hitting record levels.

People in France have been partially shielded from Europe’s high electricity prices because the vast majority of the country’s energy comes from government-controlled nuclear plants.

The French government said last week that it was able to postpone the energy price hikes until next April.

Most of the electricity in the UK is produced by power plants that burn natural gas.

Lamiat SabineOctober 9, 2021 10:10

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Weekend coverage of the gas price crisis

Here is how national newspapers covered the gas crisis on their front pages:

Lamiat SabineOctober 9, 2021 09:51

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Kremlin-controlled media says the EU needs more gas from Russia

Russian state-owned media took the opportunity to report that Western Europe would not be able to withstand the winter without additional supplies of natural gas from Russia.

London-based energy research and consultancy firm Wood Mackenzie said the only way for “Western Europe to weather a cold winter would be with an additional flow of Russian gas,” Sputnik News reports.

Gas reserves accumulated during the summer in Europe are expected to reach 78 percent at the end of October – a record low, the site said.

Sputnik News adds that the Russian state-owned gas company Gazprom supplies the European Union with more than 40 percent of natural gas.

In France, domestic nuclear power accounts for the bulk of the supply.

European leaders have been in long-running negotiations with Russia and Gazprom to increase gas supplies through the Nord Stream 2 pipeline that runs from Russia to Germany via the Baltic Sea.

Critics have said Russian President Vladimir Putin is heating up gas supplies to make the European Union more dependent on Russia.

Earlier this week, Prime Minister Boris Johnson’s spokesman accused Moscow of “throttling” supplies to force prices higher and put pressure on the European Union.

Lamiat SabineOctober 9, 2021 09:30

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fracking proponents say gas price crisis is a ‘strange case’

Advocates of hydraulic fracturing are urging the government to reconsider shale gas extraction, arguing that the controversial method could power the entire country for decades.

In 2019, Prime Minister Boris Johnson announced a moratorium on hydraulic fracturing of underground shale rocks amid concerns about safety, the environment and the earthquakes it could cause.

as mentioned before I NewspaperIndustry group Onshore Oil and Gas said the global gas price crisis was a “strange case” when gas under England could “satisfy UK gas demand for 50 years”.

fracking campaigners Friends of the Earth said fracking “rightly stopped” two years ago, and Frack Free Lancashire said fracking “remains as unacceptable as ever given the UK’s geological and environmental conditions”.

“The way out of the current gas crisis is not producing more gas, but isolating people’s homes and increasing the deployment of renewable energy to reduce our dependence on and pollute fossil fuels,” Tony Bosworth, energy activist at Friends of the Earth, told the newspaper.

Lamiat SabineOctober 9, 2021 09:10

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The group says manufacturing sectors are “interconnected” amid the rising cost of gas

Dr Richard Lees, president of the EIUG, said the different areas of manufacturing were “intrinsically linked” and the failure of one would affect the entire industry.

He told BBC Breakfast: “We’ve already seen the tip of the iceberg with the consequences of fertilizer – energy-intensive industries make goods in all supply chains, everything from metals to paper goods.

“It is all intrinsically linked, for example, when a fertilizer plant is shut down or paused, carbon dioxide is not only needed for food – we use it in the cement industry to suppress explosion risks.

“These goods are used throughout the supply chain, and they are all interconnected, so if one industry sector is affected, we are all affected.”

Lamiat SabineOct 9, 2021 08:50

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Industry group says government action is needed ‘now’

The head of the Intensive Energy Users Group (EIUG) said measures are needed to address rising energy costs “for the time being”.

Dr Richard Lees told BBC Breakfast: “Across all energy-intensive industries, they are affected equally.

“We have seen a contraction in production in the steel and fertilizer sector – that has had a significant impact on the supply chains of both industrial supply chains and local supply chains.

“What we have done is provide the government with a winter package of measures that we believe are necessary to prevent those disruptions in supply chains from happening again.

“It’s absolutely needed now – gas prices are at an unprecedented level and the companies that make the goods we need are trying to operate under these unprecedented conditions.”

Lamiat SabineOctober 9, 2021 08:30

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Energy prices are ‘unsustainable’, factory companies tell the minister

British companies fear factories will close within weeks as fuel prices rise.

Yesterday, on an emergency conference call with heavy industry, Business Minister Kwasi Kwarting warned that electricity costs five times their normal level were “unsustainable” for businesses.

Andrew Woodcock And Anna Isaac full story

Lamiat SabineOct 9, 2021 08:05

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good morning. you welcome in independentCovering the ongoing energy crisis.

Stay tuned as we bring you the latest updates.

Lamiat SabineOct 9, 2021 07:58

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