Energy

No left turn

It would be easy to dismiss Jeremy Corbyn’s launch of the Labour party’s election campaign this week on the grounds that hardly anyone believes he has the slightest chance of becoming prime minister. But given that David Cameron was given a 0.5 per cent chance of winning a majority, and Donald Trump a 1 per cent chance of the presidency, it would be foolish not to take the main opposition party seriously. At the very least, Corbyn’s ideas need to be examined in order to understand why Labour finds itself in the position it does, and why no party leader to the left of Tony Blair has won a general election

More gas, less wind

The Global Wind Energy Council recently released its latest report, excitedly boasting that ‘the proliferation of wind energy into the global power market continues at a furious pace, after it was revealed that more than 54 gigawatts of clean renewable wind power was installed across the global market last year’. You may have got the impression from announcements like that, and from the obligatory pictures of wind turbines in any BBC story or airport advert about energy, that wind power is making a big contribution to world energy today. You would be wrong. Its contribution is still, after decades — nay centuries — of development, trivial to the point of

The four major flaws with Theresa May’s energy cap

Better access to education. Tax cuts for anyone in the struggling middle. More affordable homes, and more money for the National Heath Service. There is nothing wrong with Theresa May seeking to stake out the centre ground of British politics and stop Brexit turning into a right-wing campaign to turn back the clock. But one might have imagined she’d use conservative means to achieve this, rather than raiding Ed Miliband’s last manifesto for ideas. The proposed price cap on energy companies is an alarming example of Mrs May’s left turn. There are so many ways in which the price cap is a genuinely terrible idea that it is hard to

Why Theresa May’s 1970s-style energy price caps won’t work

Better access to education. Tax cuts for anyone in the struggling middle. More affordable homes, and more money for the National Heath Service. There is nothing wrong with Theresa May seeking to stake out the centre ground of British politics and stop Brexit turning into a right-wing campaign to turn back the clock. But one might have imagined she’d use conservative means to achieve this, rather than raiding Ed Miliband’s last manifesto for ideas. The proposed price cap on energy companies is an alarming example of Mrs May’s left turn. There are so many ways in which the price cap is a genuinely terrible idea that it is hard to

Martin Vander Weyer

Capping prices to win votes is no substitute for a serious energy strategy

Is capping domestic energy prices an equitable way to help the ‘just about managing’, or an electoral gimmick with a whiff of anti-free-market ideology? When it was Ed Miliband’s idea, it was certainly the latter. Now it’s likely to be included in Theresa May’s manifesto, offering a potential £100 saving for millions of homes on ‘standard variable tariffs’, it is defended by the ever-plausible Sir Michael Fallon as a matter of ‘intervening to make markets work better’. And that, after all, is what the Prime Minister said she would do, wherever necessary, in the interests of fairness. In a regulated market, within which the consumer’s ability to choose the most

Hold the front page: energy providers are against plans to cap bills

I am inundated with press releases, emails and phone calls from PRs, all wanting to talk about their clients, the latest piece of ‘ground-breaking’ research or a news story so innovative that not to publish would have disastrous consequences. While some of these communications are useful and thought-provoking, a fair few are, to use the vernacular, total pants. In journalism, we have a number of phrases to describe these releases, from ‘no shit sherlock’ to ‘night follows day’. Decorum prevents me from mentioning the other, swearier, descriptions. It’s safe to say that Scottish Power’s response to Conservative plans to cap energy prices falls into the ‘night follows day’ news category. Wait,

EDF hikes energy prices for second time this year

I’m really tired of being ripped off. Whether it’s council tax hikes, parking charges or bus tickets (a ten minute journey to the nearest town costs more than £4 where I live), I’ve had enough. And don’t get me started on the size of chocolate bars. So it’s with a weary sigh that I read of another rise in energy bills for EDF customers. It’s proof, if proof were needed, that big companies feel they can do exactly what they want, and sod their customers. Under the changes, people on EDF’s dual-fuel tariff will pay £1,160 a year, substantially more than the cheapest deal on the market. This is a whopping difference, and

The flawed thinking at the heart of the renewable energy swindle

A new report revealing that using wood pellets to generate electricity can actually speed up global warming should be the final nail in the coffin for the flawed policy of biomass subsidies. Policies designed to incentivise green energy use are not only having a dubious effect on climate change, they are destroying biodiversity and even killing many thousands of people. Wood (or to use the technical term covering wood, wood pellets and other burning matter like animal dung, biomass) is by far the most significant renewable energy source. In both the US and the EU, biomass is the single largest source of renewable energy. Owing to poverty, around three billion people globally cook and heat their

Crackdown on catch-up energy bills: Ofgem loses its patience with energy providers

Like many households, my electricity meter is not in a terribly accessible spot. Reaching said meter requires a short stepladder or standing on the kitchen counter. That said, there’s no need for crampons. And so every time someone comes to read the meter, I’m met with the same response. ‘Oh no lass, health and safety. I can’t get up there.’ Needless to say, the meter goes unread. As a result, and also because I pay by direct debit, I’m one of many whose bills are, for the most part, based on estimations (yes, I know I could send in a reading myself but at some point the lekky company really

Want to save money on your energy bill? Try a small supplier

For a long time, the energy market has been dominated by six giants: British Gas, EDF, E.ON, npower, SSE and Scottish Power. According to the latest figures from regulator Ofgem, between them the so-called ‘big six’ have a market share of 85 per cent. The trouble is, they are often the most expensive. Recent years have seen a number of less well-known names emerging in the market, offering better customer service and better prices. So is it time to take the plunge and go with a small supplier? The big six premium Millions of people are languishing on their supplier’s standard tariff. These are the most expensive tariffs, the ones

How to beat rising energy bills

With the winter chill showing no sign of letting up any time soon, it’s even more depressing that some of the big energy suppliers are hiking their prices yet again. Scottish Power customers will see their gas and electricity costs rise 7.8 per cent on average from the end of March, adding £86 on to bills. EDF Energy and Npower have announced similar rises. The good news, however, is that it’s perfectly possible to slash your own bill. Of course, the best way to reduce the cost of energy is simply to use less of it by becoming more energy efficient – for example, by making sure your home is

Money digest: ‘Marmite gate’ and Germany’s tougher stance on Brexit

One and a half million households, many of them poor families or pensioners, are not on the correct energy tariff for their consumption says the Daily Mail’s This Is Money. The big six power giants – British Gas, EDF, Eon, Npower, Scottish Power and SSE – are overcharging by a net amount of £440 million per year, the paper says. Frank Field MP, who chairs the Commons Work and Pensions Select Committee, has written to the Prime Minister to draw attention to the issue. He said that ‘as a next move in protecting the vulnerable human underbelly of British society, the Prime Minister should take the first available opportunity to

In Trump’s Texas, the oil men awaken to hope of new prosperity

 Houston, Texas It’s hard to find anyone in polite society here who admits to having voted for Trump, even among the oil men. But 4.7 million Texans did so, giving him 53 per cent of the popular vote. In redneck rural counties the Donald carried four fifths of the ballot, but Hillary Clinton was ahead in urban Houston, whose citizens pride themselves on good relations between white, black and Latino communities and on the welcome they offer to newcomers — including, a decade ago, a quarter of a million refugees from hurricane-hit New Orleans. But still this is predominantly an oil town, and an industry that has suffered losses and slashed

Philip Hammond, the frankest man in the Cabinet

On Thursday, the Cabinet’s Economic and Industrial Strategy committee met. There were, as I write in The Sun this morning, controversial issues on the agenda: new rules on foreign takeovers of British companies, executive pay and workers on boards. May made clear her views on these questions in the last speech of her leadership campaign. But in this meeting, the members of the committee didn’t simply echo May’s views back at her. One of those present tells me that Philip Hammond made a ‘fearless’ intervention setting out his own, distinct take on these questions. Hammond was then supported by several Cabinet colleagues. It was emphasised that in the context of

Letters | 25 August 2016

Golden age problems Sir: Johan Norberg’s ‘Our golden age’ (20 August) is absolutely right — we do live in a golden age; antibiotics still work, we have less starvation, the world is open for trade, with all its benefits. But there is a fly in the ointment: human overpopulation. Global warming (if you believe in it), degradation of the environment, extinction of species, all are consequences of it. It is a result, in fact, of our success. The only country to have grasped the nettle — China — is now having second thoughts. Perhaps wind and solar power can provide for our needs when we are 70 million in these islands; but what when

Martin Vander Weyer

Oil prices will drift down again as Opec fails to get its act together

How many Olympic medals did Opec win? The answer (though I’ll bet no one else has bothered to work this out) is 15, or an average of 1.07 medals per member of the world’s leading oil-producer cartel. That result — boosted, I should add, by the five-medal triumph of the Iranian wrestling team — compares with the now notorious aggregate figure of 325 for the EU, including Team GB’s 67. I highlight the contrast only to make the point that, as power blocs go, resource-rich Opec is piss-poor at managing its affairs to advantage: the indolent leadership of the Saudis (Rio medals: zero) and their permanent stand-off with Iran means

China syndrome

The Chinese government is unlikely to give Theresa May a panda in the near future. This week the country’s ambassador to London, Liu Xiaoming, left no one in any doubt that President Xi Jinping takes a dim view of Mrs May’s decision to review the deal for a new nuclear power station at Hinkley Point in Somerset — a deal through which China General Nuclear, the state nuclear-energy company, would have a one-third share. The Prime Minister was told that Anglo-Chinese relations are at a-‘critical historical juncture’. So she’d better play-nicely and approve that power station — or risk the wrath of Beijing. This is a far cry from the

Tempted to turn on the heating? Think twice before reaching for the thermostat

A post from a friend pops up on my Facebook page. ‘It’s August 9th and the winter tights are on.’ I feel her pain. Last weekend I bought logs and smokeless fuel, and I don’t mean for the barbecue. Yesterday I went shopping wearing a cardigan, a coat and armed with an umbrella. For the love of god, where is our summer? I appreciate that living in the North of England means I’m less likely to spend June and July slathered in sun cream in the back garden but come on! This is getting beyond a joke. Thankfully, it seems that my pal and I are not the only ones reaching

Top tips for UK-China trade: grab the cheque and sup with a long spoon

There are reasons why Theresa May might harbour doubts about the Hinkley Point nuclear project — chiefly its unproven French technology and the high probability of time and cost overruns — but the fear expressed by her aide Nick Timothy that ‘the Chinese could use their role to build weaknesses into computer systems which will allow them to shut down Britain’s energy production at will’ sounds — even to a Sino-cynic like me — far-fetched. As I wrote here during President Xi Jinping’s visit last year, ‘The least sinister thing about the Chinese is their money. A ten-digit cheque… even from China National Nuclear Corporation… does not carry a ‘backdoor’ listening

Theresa May’s new ministry of posh

Apart from Boris, where have all the posh boys (and girls) gone in Theresa May’s government? The answer, curiously, is the new department for Business, Energy and Industrial Strategy. Secretary of state Greg Clark is impeccably classless, being the product of a Roman Catholic secondary school in Middlesbrough where his father and grandfather were milkmen. But his ministerial team consists of three Old Etonians — Nick Hurd, Jo Johnson and Jesse Norman — plus Margot James (Millfield) and convent girl Baroness Neville-Rolfe. Reassuringly, however, all five have business experience — and more so than Clark himself, who has quietly climbed the greasy pole as an all-purpose policy wonk. Ex-civil-servant Lucy