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Wednesday, 10th September 2008

The energy deal revealed

Peter Hoskin 8:52am

The Guardian has got its hands on details of the Government's rescue package for those struggling with rising fuel bills. The centrepiece of it is a £1 billion deal with energy companies, by which those same companies will contribute more to the carbon emissions reduction target scheme - in other words, more money will be available to help people have their homes insulated.

It's all much as Brown prepared us for in his speech last week - no "short term gimmicks and giveaways" and an emphasis on "long term efficiency". But the same questions remain. Will it actually help all that much? Will it increase support for the Government? Will it satisfy the unions and those in the Labour party who wanted a windfall tax? Will the energy companies not just pass on any extra costs to the public, in the form of higher bills? I - like many others - have my doubts on all those fronts.

This damp squib of an "economic recovery package" is fast becoming the textbook example of how a government can constrain itself by spending, taxing and borrowing the economy to the hilt. Brown is now left scrabbling around for loose change, instead of having the fiscal space to really help those who are being hit by high energy costs. It's politically inept. But - with the expectation being that 1000s more elderly people will die this winter because they can't afford their energy bills - it's morally inept too.

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Hereford

September 10th, 2008 9:45am Report this comment

How can you say this? This is the man of conviction, a man of substance, a man of integrity who, single handed and against a hostile global financial environment and the continued opposition from Blair, engineered, nay created, the longest period of continued growth in the British economy.

How could such a clever, financial genius fail to prepare us for the inevitable downward part of the economic cycle. You must be mistaken.

I'm sure Gordon is not scrabbling for loose change. He has kept is all in a jar under his bed and will whip it out any moment now and save the day.

Ian C

September 10th, 2008 11:06am Report this comment

Come, Hereford, would that be the tiniest note of cynicism? Such shame on those who would fleetingly hold such thoughts......!!

David C

September 10th, 2008 11:08am Report this comment

"Never, in the field of economic recovery, has so little been promised to so many by so few."

And you may quote me.

Liz Brown

September 10th, 2008 11:59am Report this comment

Why should I be expected to contribute, thro higher bills, to lag someone else' home - will they, in turn, contribute to lagging mine? As to all this carbon emissions/renewable energy crap - it is just so much hot air and aside from reducing us all to penury does nothing for the planet - which can cope quite nicely without interference from us - it has done so before and will do so again
Bog off Gordo and leave us in peace

Slim Jim

September 10th, 2008 12:29pm Report this comment

Actually, there are grants avaialable right now for those who wish to upgrade their domestic insulation. I know - I have taken advantage of them and my home is now up-to-date and energy efficient. I also understand that OAPs can get 100% grants too.

You are right about how much the 'tax, spend and waste' spree has left the cupboard bare. Now would be a great time to announce a reduction (or aboltion) of VAT on fuel and energy products. That would go down well I suspect. However, something tells me the EUSSR would not permit HMG to do that...

SUSAN HILL

September 10th, 2008 12:35pm Report this comment

We have just spent about £800 putting foot-thick insulation in the loft and replacing broken slates in the roof. Last year our oil bill - no gas in the country - was over £9,000. I read that people may be paying £900 for a year`s gas heating with incredulity and bitter envy. THat isn`t even a single fill of our oil tank. I asked how much saving the new insulation would represent.. calculation is about £95 A YEAR. You do the math.

Draughtsman

September 10th, 2008 12:36pm Report this comment

Call me cynical, but I would not be surprised if the government, if I can use that term about this shower, are sanguine about seeing fuel bills at these levels. Most people will be turning lights off and going colder than they would like in order to keep the bills down. This in turn will reduce the country's CO2 emissions so that they can then crow that we are meeting our obligations under this absurd Kyoto protocol. These global warming alarmists campaigning against fossil fuel and nuclear power generation and for inefficient and expensive "renewable" energy will have a lot to answer for when we start to see a surge of cold related deaths this winter.

SUSAN HILL

September 10th, 2008 12:39pm Report this comment

Further to my previous post and in reply, the grants are income-dependent. I am 66 my husband is 78 but we earn too much so no grant. You say your home is energy efficient - good. But the estimate on annual saving for having insulated to a depth of the recommended 12 inches (1 foot) of lagging was a paltry £95 a year. The cost of the insulation of 2 large lofts was over £800. But that is fine, the poorest need the grants, we don`t... but don`t everyone expect a fat cheque in exchange for some lagging unless you are pretty low-income.

Austin Barry

September 10th, 2008 12:50pm Report this comment

Perhaps we can control Gordon's carbon and methane emissions by placing him in a jiffy bag and sending him somewhere where his attributes would be appreciated: perhaps to his beloved Cape Cod where he could contribute to the gaiety of the vacationers by donning his tan jacket and judging leapfrog competitions, "No, Jules and Sandy that modification will lead to instant disqualification".

TrevorsDen

September 10th, 2008 2:10pm Report this comment

The 1 billion is over 3 years, so 333 million a year !!!

Will the extra contributions be funded by higher prices??

We ourselves may have got our standing order payments out of synch but we have been informed that our payments need to go up from £40 to £133 a month. We are just going to pay the outstanding and then pay as we go - no standing order. If this is happening all over the country then Brown's efforts will be laughed out of court.

The whole carbon emissions reduction scheme is a double farce. The government will be PRAYING for global warming this winter. Indeed the last thing we need now is colder weather. But in fact temperature measurements indicate that last year was COLDER than when NASA's Hansen started the whole global warming scam.
Hansen's Goddard Institute by the way received $250,000 from John Kerry's wife's foundation and he then endorsed Kerry for President.

JR

September 10th, 2008 2:17pm Report this comment

"But - with the expectation being that 1000s more elderly people will die this winter because they can't afford their energy bills - it's morally inept too."

Erm - who is expecting this?

John de Finchley

September 10th, 2008 2:30pm Report this comment

Any day now we will find that when Broon sold our gold, he didn't piss it away after all, like thought - instead he put it all on a horse which is running this afternoon in the 16.37 at Aintree. Apparently this bloke in the pub said it couldn't fail.

SUSAN HILL

September 10th, 2008 10:00pm Report this comment

We have cancelled the electricity standing order too... they have been demanding more per month for the last 2 years yet at the end of each one we have been in credit. No more. We will also pay as we go and I bet our maths is better than theirs.

Guy Incognito

September 11th, 2008 9:45am Report this comment

These hypothetical pensioners whining on about fuel prices make me so angry. I bet they've got enough money for hairnets, tartan shopping trolleys, the Daily Express and Werther's Originals.

dr david hill

September 11th, 2008 7:38pm Report this comment

Open letter to Gordon - Your energy strategy is simply unintelligent rubbish

Dear I'm alright Jack, Gordon,

Don't you realise Gordon that these energy companies are just businesses, not charities, only interested in one primary thing, profits and as much as they can get their greedy little hands on. Therefore Gordon I will tell you now that through 'stealth' and indirect charging, they will one way or the other get their dirty grubby hands on the £900 million plus you say they will have to pay into your system again at some time in the near future. This must be the most unintelligent decision that you have made and where your hope is ill-founded. Haven’t you heard of Owen-Lloyd of E.On, the one who very recently said ‘…the continued high gas and electricity prices would mean "more money for us"

Wake up Gordon, I thought that you were supposed to be the wisest of the wise chancellors. This appears suddenly a bit of a misdemeanour and where there was absolutely no truth in this rumour whatsoever.
Give us a pound Gordon, I promise that I will give it you back,…err sometime...err I promise, you know that you can trust me.

Dr David Hill
World Innovation Foundation Charity (WIFC)
Bern, Switzerland

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