The global surge in demand for energy could spark another three years of market volatility and record power plant pollution unless countries make major changes to how they generate electricity, the world’s energy watchdog has warned. The International Energy Agency recorded the steepest ever increase in electricity demand last year, which triggered blackouts in major economies and led to historic energy price highs and record emissions. The IEA’s annual electricity report said this could continue for another three years, with serious consequences for consumers and economies unless there is a faster structural change to the way electricity is produced.
Guardian 14th Jan 2022 read more »
Around £39,222,407 is to be returned to electricity suppliers through the Contracts for Difference (CfD) scheme, the first quarter in which this has occurred. In the CfD, generators receive top-up payments to the strike price they are paid for the electricity they generate, but they can also pay back money when the market prices rise beyond their strike price, with high wholesale prices seen consistently throughout the latter half of 2021. In light of these wholesale prices, the Low Carbon Contracts Company (LCCC) – the counterparty of the CfD – reduced the interim levy rate (ILR) to £0/MWh in September 2021, with this then remaining at £0/MWh for the entire quarter.
Current 13th Jan 2022 read more »
The current cost-of-living crisis, largely driven by energy price hikes, is the “most immediate threat” to the UK’s delivery of its long-term climate targets, according to a new policy briefing. Published today (13 January) by the think-tank the Institute for Government (IfG), the warning forms part of a new policy briefing on laying the foundations for the UK’s transition to net-zero in the coming months. Experts, including the Government’s own advisors at the Climate Change Committee (CCC), have warned that the longer the transition is delayed and the less it is organised, the higher the costs will be and the lower the chances will be of the UK meeting its legally-binding pledges to cut emissions.
Edie 13th Jan 2022 read more »
British industry has reacted disappointingly after the government has shown little willingness to provide immediate financial support to energy-intensive users suffering from rising gas and electricity prices. October, British Prime Minister Boris Johnson Instructed The minister will investigate potential state support for heavy industry to offset rising energy costs.
FT 14th Jan 2022 read more »
Britain’s energy crisis has been exacerbated by the government dragging its feet on renewables, experts have told The Independent. Households are once again facing a rise in gas and electricity bills, with another increase in the price cap expected in spring – and suggestions this could rise by as much as 50 per cent to set limits just below £2,000. The energy crisis has been sparked by soaring gas prices, which are in turn fuelling a sharp rise in the cost of living. Economists and climate policy experts said the UK could have softened the blow of the crisis with a greater focus on renewable energy over the years. “It would still be bad, but it wouldn’t be as bad,” Jonathan Marshall, an economist from Resolution Foundation think tank, told The Independent.
Independent 13th Jan 2022 read more »
The energy crisis could see an extra two million people pulled into fuel poverty, a group of leading charities has warned, as they call for the Government to help people insulate their homes and shift away from using gas for home heating. Energy bills are expected to rise as much as £700 from April, when the price cap is raised to reflect increased global wholesale gas prices. The rise could leave the average household paying £2,000 a year for its fuel bills, which would increase the number in fuel poverty from four to six million, the coalition of 25 charities and green groups including Age UK, Save the Children and countryside charity CPRE warns. The coalition has called on the Prime Minister to help improve insulation, which they say could save households £500 a year in energy bills in the worst performing households, many of which are among the poorest.
Telegraph 14th Jan 2022 read more »
Cost of living crisis threatens to keep Rishi Sunak out of No 10. Higher prices, taxes and energy bills all carry Chancellor’s fingerprints. Price rises are coming on top of increases in corporation tax, hikes to National Insurance contributions, higher energy bills and, no doubt soon, increased interest rates. Sunak is responsible for some of those things and has arguably exacerbated others, by, for example, refusing to cut VAT on energy bills.
Telegraph 14th Jan 2022 read more »