Energy

When dozens of energy companies started going bust in 2021, the government knew it had a crisis on its hands. The rise of the energy price cap from £1,277 to £1,971 in April – an increase of nearly £700 – led to not one but two emergency support packages. By the end, £15 billion worth of subsidies and support broadly covered the price rise for Britain’s eight million poorest households. This, it now seems, is just the start of what’s needed to get them through winter. Starting in January, the price cap will be updated every three months instead of every six months to better reflect the wholesale price of energy This

How outraged should we be that Saudi Aramco has reported a world-record quarterly profit of $48 billion, representing a giant bonus from the global oil price spike provoked by the war in Ukraine? Well, that’s how the cookie crumbles when you’re sitting on oil reserves so abundant and so easily accessible that your marginal cost of producing the next barrel is less than $10 when the market price has just doubled to $130 – as it did in March, before settling back to around $95 today. And you might think that this recent price retreat is likely to continue as oil demand begins to shrink with the onset of recession

This summer marks a truce. But if, as expected, Liz Truss becomes prime minister, it is almost inevitable that tensions over the Northern Ireland protocol will resurface. Britain has been threatened with trade barriers if it tears up the protocol, with implications for import and export industries. But one possible consequence has been largely overlooked, in spite of the gathering energy crisis: the trade in gas and electricity. Imported power via undersea interconnectors is the forgotten but fast-growing element of our electricity system. In 2019, 6.1 per cent of our electricity was imported. Undersea power interconnectors, which have been a feature of the UK electricity system since 1986 when the first one plugged

The debate about energy in the UK has largely concentrated on just how high prices will go. This is understandable given how seismic the October and January increases in the energy price cap are likely to be. But today’s announcement from Norway that it will prioritise refilling domestic reservoirs over exporting hydropower to countries like the UK is a reminder that supply may soon become an issue too. In a crisis, borders reassert themselves as Covid showed. What happened with PPE and medical supplies during the pandemic may well happen with energy this winter. This is a concern for the UK given that it imports large quantities of energy during the

‘What’s worse, they’re paying the profits to shareholders,’ said a grey-haired woman ahead of me in the Co-op queue. ‘Bloody shareholders,’ her friend of similar age and class spat back. I guessed they were talking about Centrica, parent of British Gas, which at a time when domestic energy bills are rising 23 times faster than wages (as Frances O’Grady of the TUC puts it) has announced half-year operating profits of £1.3 billion, up from £262 million last year – and the restoration of a penny-per-share interim dividend after a three-year gap. Both ladies looked likely to be beneficiaries of pensions nourished by dividends from the likes of Centrica, Shell and

Have we reached the endgame of Vladimir Putin’s energy war against the West, the point at which he turns off the gas for good? This afternoon, Gazprom announced that from Wednesday morning it will cut the quantity of gas flowing through the Nord Stream 1 pipeline to Germany to 33 cubic metres per day. This will halve the current flow of 67 million cubic metres and is just 20 per cent of the 167 million cubic metres which flowed through the pipeline before the Ukraine invasion. Ostensibly, the cut is for reasons of ‘maintenance’. That is unlikely to wash. Nord Stream 1 relies on a compressor station powered by six

For now, Berlin can breathe a sigh of relief: after a ten-day shutdown for maintenance, the Nord Stream 1 pipeline is back online. Russia is once again heating German homes, fuelling German industry, and using German money to finance its war in Ukraine. But this happy exchange may not continue; the pipeline is still operating at just 40 per cent of its usual capacity, and Vladimir Putin is warning this could fall to 20 per cent next week. With Germany’s gas reserves just 65 per cent full – thanks in part to state-owned Russian energy company Gazprom’s curious oversight in maintaining them last year – and plans to refill it