Environmental campaigners have said that Keir Starmer’s speech today must set out how his party will deliver a just transition plan for workers and communities currently dependent on the energy industry for their livelihoods.
In a speech in Edinburgh, the UK opposition leader is expected to give details of Labour’s plan for the energy transition, and confirm its policy of no new oil and gas licences, and opposition to the Cambo and Rosebank projects, in a bid to tackle climate breakdown.
Campaigners are calling on the Labour leader to focus on the blueprint for a just energy transition created by offshore oil and gas workers and backed by key trade unions including:
• Clear accessible pathways out of high carbon jobs, and a training regime for safety not profit • Investment in domestic manufacturing and assembly of renewables • Ensuring safety, job security and fair pay across the energy industry . • Sharing the benefits of our energy system fairly, through public ownership, reorganising the tax system for public good and targeted public investment.
The demands, published by Friends of the Earth Scotland and Platform earlier this year, were developed in consultation with oil and gas workers and backed by over 1000 workers surveyed.
Campaigners highlighted in particular that public ownership must be at the heart of Labour’s just transition strategy, to enable the prioritisation of public good over private profit.
The Shadow Chancellor Rachel Reeves has previously pledged to reach £28bn per year of investment in tackling climate change if Labour leads the next UK Government.
Friends of the Earth Scotland’s head of campaigns Mary Church said: ““Keir Starmer is right to say no to new oil and gas developments to fight climate breakdown. This is an important step in the right direction towards setting an end date for all fossil fuels in our energy system, which is needed to provide certainty for the sector, making it clear that investing in renewables is the only choice for our energy future, and enabling proper workforce planning.
“The Labour leader needs to be clear about the steps his party will take to prioritise supporting affected workers and communities through the transition. With the right planning and investment there is potential for three jobs for every one job at risk from a managed phase out of oil and gas, in line with global climate goals. But this will only happen with government leadership and investment.
“Oil and gas workers are ready to lead a rapid and fair transition away from fossil fuels, and have a blueprint to create an energy industry that protects workers, communities and the climate. All that is required is the political will to get behind their demands.
Challenging the Labour leader to go further on his commitment to a Great British Energy company, she continued: “With the greedy energy firms having demonstrably failed to deliver on climate action, while raking in profits as people struggle to pay their bills, public ownership clearly must be at the heart of Labour’s just transition strategy.
“Public ownership means that public good objectives like keeping peoples’ homes warm and bills affordable, and reducing environmental harm, can be prioritised over profit.
“The investment promised if Labour forms the next UK Government is a great start and should be used to nationalise or take stakes in strategic energy infrastructure, such as the grid and ports, and to invest in regional publicly owned renewable generation companies.
“But more is needed, and reorganising the tax system for public good will be key to raising the finance needed.”
Climate campaigners have said that BP reporting a tripling of quarterly profits shows that the UK energy system is ‘fundamentally broken.’ The oil giant today announced profits of £6.9 billion ($8.45 billion) in just 3 months.
Meanwhile, energy consultants have forecast that energy bills could reach over £3,600 per household.
BP have said they will use these record profits to pay out to their shareholders as well as buy back shares in the company from investors. Share buybacks are a way of increasing the value of shares for shareholders.
BP continues to invest in fossil fuel projects such as the Murlach oil field which will further ‘lock us into’ this broken energy system for decades, increasing company profits even further at the expense of people and the planet, campaigners say.
Climate scientists and energy experts have warned that we cannot afford any more investment into fossil fuel extraction if we are to limit dangerous climate warming to 1.5ºC.
Recent research revealed the oil and gas industry has made over $52 trillion in profit over the last 50 years.
Friends of the Earth Scotland’s Oil and Gas Campaigner Freya Aitchison said: “This announcement of yet another obscene profit for BP is a clear sign that our energy system is fundamentally broken.
“Rising energy prices are a key driver of the cost of living crisis which is plunging millions of people in the UK into fuel poverty, yet bosses and shareholders at BP are getting even richer by exploiting one of our most basic needs.”
“BP is also worsening climate breakdown and extreme weather by continuing to invest and lock us into new oil and gas projects for decades to come. Instead of allowing these companies to continue causing social and environmental devastation to boost their profits, we need to overhaul our energy system to rapidly phase out oil and gas.
“A fair and fast transition to renewables must ensure that everyone has access to affordable and clean renewable energy.”
PM hails £10 billion Qatari ‘vote of confidence’ in the UK
The PM hosted the Amir of Qatar yesterday to develop our historic partnership and agree new joint work on trade, energy and defence
Strategic Investment Partnership will see Qatar invest up to £10 billion in key industries across the UK, creating jobs and growth
UK and Qatar agreed to work together improve the stability of energy supply chains and support security at the 2022 World Cup
It was all smiles when The Prime Minister welcomed the Amir of Qatar, Sheikh Tamim bin Hamad al Thani, to Downing Street yesterday for discussions on driving economic growth and addressing global challenges together.
The meeting was surely a welcome distraction from the latest Partygate revelations and the imminent publication of the Sue Gray report into Downing Street lockdown parties, which is expected to be extremely critical of Boris Johnson’s conduct.
The UK and Qatar signed a new Strategic Investment Partnership (SIP) which will see Qatar invest up to £10 billion over the next five years in key sectors of the UK economy, including fintech, zero emissions vehicles, life sciences and cyber security. The investment is expected to create high-quality jobs in new industries across the country.
The Prime Minister and the Amir also had a wide-ranging discussion on geopolitical issues. They were united in their condemnation of Russia’s aggression in Ukraine and discussed issues of regional security, including relations with Iran.
Prime Minister Boris Johnson said: “Today’s announcement of up to £10bn in new investment from our Qatari friends is another vote of confidence in the UK’s brilliant businesses and cutting-edge industry.
“The new UK-Qatar Strategic Investment Partnership will create quality job opportunities across the country in key sectors, delivering on our vision of economic growth through trade and investment.
“Qatar is a valued partner for the UK, supported by Sheikh Tamim bin Hamad’s leadership. We had a rich discussion on the issues that matter to both of our countries, including boosting the economy, ensuring regional stability and improving energy security following Russia’s appalling invasion of Ukraine.”
UK-Qatar trade was worth £4.8 billion last year and Qatari investment in the UK economy is already estimated to be worth over £40 billion, supporting jobs and growth across the country.
Minister for Investment Lord Grimstone said: “It is excellent news that Qatar is targeting up to £10 billion investment into the UK through our new Strategic Investment Partnership.
“Not only will it boost local economies and support jobs, but it supports our green economy and decarbonisation – crucial in meeting our Net Zero targets. It also strengthens our relationship with Qatar ahead of our UK-Gulf Cooperation Council trade negotiations.”
Business Secretary Kwasi Kwarteng also signed an MoU on energy cooperation with Qatar’s Minister of State for Energy Affairs at Downing Street. Qatar is a major energy supplier for the UK, providing 40% of our liquefied natural gas – the new MoU commits us to work together to boost innovation and collaboration, supporting the security of global energy supplies.
UK Secretary of State for Business and Energy, Kwasi Kwarteng, said: “I am delighted to further the UK’s energy cooperation with the State of Qatar as we work to stabilise international energy markets and boost energy security in the context of Russia’s illegal invasion of Ukraine.
“Qatar is already a valued trading partner, recently investing in the future of British low-carbon nuclear technology through the Rolls Royce consortium developing small modular reactors. Today’s meeting will deepen our relationship even further, reinforcing the UK’s energy security and delivering cleaner and affordable energy in the years ahead.”
The Prime Minister and Amir discussed the upcoming 2022 Qatar World Cup this winter, and the UK committed significant new military and counter-terrorism support for the safe running of the event.
A joint UK-Qatar Typhoon Squadron will provide additional air security, and the Ministry of Defence with advanced venue search training and operational planning support.
The Prime Minister also confirmed that the UK will ensure Qatari nationals can access the UK’s new Electronic Travel Authorisation system from early 2023, facilitating easier travel for business visitors and tourists.
Cleaner and more affordable energy to be made in Great Britain under bold plans to boost long-term energy independence, security and prosperity
The Prime Minister’s plan boosts Britain’s energy security following rising global energy prices and volatility in international markets
bold new commitments to supercharge clean energy and accelerate deployment, which could see 95% of Great Britain’s electricity set to be low carbon by 2030
ambitious, quicker expansion of nuclear, wind, solar, hydrogen, oil and gas, including delivering the equivalent to one nuclear reactor a year instead of one a decade
over 40,000 more jobs in clean industries to be supported thanks to measures, totalling 480,000 jobs by 2030
Cleaner and more affordable energy to be made in Great Britain under bold plans to boost long-term energy independence, security and prosperity.
The UK government’s British Energy Security Strategy sets out how Great Britain will accelerate the deployment of wind, new nuclear, solar and hydrogen, whilst supporting the production of domestic oil and gas in the nearer term – which could see 95% of electricity by 2030 being low carbon.
The strategy will see a significant acceleration of nuclear, with an ambition of up to 24GW by 2050 to come from this safe, clean, and reliable source of power. This would represent up to around 25% of our projected electricity demand. Subject to technology readiness from industry, Small Modular Reactors will form a key part of the nuclear project pipeline.
A new government body, Great British Nuclear, will be set up immediately to bring forward new projects, backed by substantial funding, and the government will launch the £120 million Future Nuclear Enabling Fund this month.
They will work to progress a series of projects as soon as possible this decade, including Wylfa site in Anglesey. This could mean delivering up to eight reactors, equivalent to one reactor a year instead of one a decade, accelerating nuclear in Britain.
The Westminster government’s plans also include:
Offshore wind: A new ambition of up to 50GW by 2030 – more than enough to power every home in the UK – of which we would like to see up to 5GW from floating offshore wind in deeper seas. This will be underpinned by new planning reforms to cut the approval times for new offshore wind farms from 4 years to 1 year and an overall streamlining which will radically reduce the time it takes for new projects to reach construction stages while improving the environment.
Oil and gas: A licensing round for new North Sea oil and gas projects planned to launch in Autumn, with a new taskforce providing bespoke support to new developments – recognising the importance of these fuels to the transition and to our energy security, and that producing gas in the UK has a lower carbon footprint than imported from abroad.
Onshore wind: We will be consulting on developing partnerships with a limited number of supportive communities who wish to host new onshore wind infrastructure in return for guaranteed lower energy bills.
Heat pump manufacturing: We will run a Heat Pump Investment Accelerator Competition in 2022 worth up to £30 million to make British heat pumps, which reduce demand for gas.
They will also look to increase the UK’s current 14GW of solar capacity which could grow up to 5 times by 2035, consulting on the rules for solar projects, particularly on domestic and commercial rooftops.
The goovernment will aim to double the ambition to up to 10GW of low carbon hydrogen production capacity by 2030, with at least half coming from green hydrogen and utilising excess offshore wind power to bring down costs.
This will not only provide cleaner energy for vital British industries to move away from expensive fossil fuels, but could also be used for cleaner power, transport and potentially heat.
The Prime Minister, Boris Johnson, said: “We’re setting out bold plans to scale up and accelerate affordable, clean and secure energy made in Britain, for Britain – from new nuclear to offshore wind – in the decade ahead.
“This will reduce our dependence on power sources exposed to volatile international prices we cannot control, so we can enjoy greater energy self-sufficiency with cheaper bills.”
This plan comes in light of rising global energy prices, provoked by surging demand after the pandemic as well as Russia’s invasion of Ukraine. This will be central to weaning Britain off expensive fossil fuels, which are subject to volatile gas prices set by international markets we are unable to control, and boosting our diverse sources of homegrown energy for greater energy security in the long-term.
Consumer bills will be lower this decade than they otherwise would be as a result of the measures this government has taken.
The British Energy Security Strategy will also increase the number of clean jobs in the UK by supporting; 90,000 jobs in offshore wind by 2028 – 30,000 more than previously expected; 10,000 jobs in solar power by 2028 – almost double our previous expectations; and 12,000 jobs in the UK hydrogen industry by 2030 – 3,000 more than previously expected.
In total, the British Energy Security Strategy builds on the Prime Minister’s Ten Point Plan for a Green Industrial Revolution, and, together with the Net Zero Strategy, is driving an unprecedented £100 billion of private sector investment into new British industries including Offshore Wind and supporting 480,000 new clean jobs by the end of the decade.
Business and Energy Secretary, Kwasi Kwarteng, said: “We have seen record high gas prices around the world. We need to protect ourselves from price spikes in the future by accelerating our move towards cleaner, cheaper, home-grown energy.
“The simple truth is that the more cheap, clean power we generate within our borders, the less exposed we will be to eye watering fossil fuel prices set by global markets we can’t control.
“Scaling up cheap renewables and new nuclear, while maximising North Sea production, is the best and only way to ensure our energy independence over the coming years.”
The strategy follows a series of engagement by the Prime Minister and ministers across government with key industry leaders, including from the oil and gas, wind and nuclear sectors. The government continue to work with industry in the coming weeks to drive forward these commitments as fast as industry can deliver.
Astonishing lack of action on energy efficiency will leave people freezing, desperate and out of pocket next winter, say FoE
Commenting on the government’s Energy Security Strategy, Friends of the Earth energy campaigner, Danny Gross, said: “Households are facing soaring bills and need help right now. The quickest way the government can do this is through renewables and funding a council-led, street-by-street free insulation programme.
“By targeting those most in need first we can make sure fewer people face dire circumstances next winter when the cold weather bites. Instead, the astonishing lack of action on energy efficiency will leave people freezing, desperate and out of pocket next winter.
“This fails as a strategy, as it does not do the most obvious things that would reduce energy demand and protect households from price hikes.
“Delving deeper into the UK’s treasure trove of renewables is the surest path to meeting our energy needs – not the fool’s gold of fossil fuels.
“The acceleration in developing offshore wind is certainly welcome, but Ministers must go further and make the most of the UK’s massive onshore wind resources. Wind turbines are fast to build, popular with the public and could provide cash-strapped households with huge quantities of cheap renewable power.
“Nuclear power is not the solution either. New nuclear power stations would take well over a decade to build and they’re expensive, hazardous and produce waste that will remain highly radioactive for thousands of years.
“We have been here before, with eight nuclear sites announced in 2010. Over a decade on, the only one under construction is seriously behind schedule and over budget, with a price far above current renewables.
“Other countries have taken much bolder action to meet the scale of the challenge. Britain can – and must – raise its ambition, to ensure everyone has access to clean, affordable energy.”
Lothian MSP Miles Briggs has welcomed the impact in his constituency of a scheme aimed at helping homes become warmer, more comfortable and more affordable to heat.
Warmer Homes Scotland, the Scottish Government’s national fuel poverty scheme, has supported 2,444 people in Lothian since it was launched in 2015, with each of them saving an average of £264 off their energy bills.
The Warmer Homes Scotland scheme provides a step-by-step service to identify where energy improvements can be made in the home and arranges for this work to be carried out. The scheme offers new central heating systems, including renewable heating technologies such as air source heat pumps, in all property types and in all regions of Scotland.
All of the work delivered under the scheme is carried out by registered and accredited local sub-contractors, working to rigorous quality standards across the country, with completed work independently checked to guarantee that these standards are met. In the last year, 99% of Warmer Homes Scotland customers said they were satisfied or very satisfied with the work carried out in their homes.
A new report also found that the scheme has wider benefits for the health, wellbeing and social lives of those people who received support.
It also identified positive outcomes from the scheme for all levels of society, from householders through to the NHS and the Scottish Government.
Lothian MSP, Miles Briggs, said:“I’m pleased to learn that the Warmer Homes Scotland scheme has supported so many people in my constituency to be warmer and more comfortable in their homes.
“It’s also great to learn about Warmworks Scotland’s new report and the positive benefits from the scheme on householders’ health, wellbeing and day-to-day living.
“I’m delighted to know that the scheme has helped many of my constituents save money on their fuel bills. I’d encourage all of my constituents to check if they are eligible to receive help under the scheme, as the improvements it offers could make a real difference this winter and in the years to come.”
Warmworks Scotland Managing Director, Ross Armstrong, added: “The Warmer Homes Scotland scheme has been helping people right across Scotland feel warmer and more comfortable in their homes for six years.
“But we also now know that the benefits of the scheme go even further, and that it’s making a real difference in terms of supporting people with their health, wellbeing and day-to-day lives.
“I’m delighted that we have been able to help 2,444 people in Miles Briggs MSP’s constituency to be warmer and more comfortable in their homes, and that they have saved £264on their fuel bills thanks to the improvements made under the scheme.
“We look forward to building on this work and helping many more people throughout Lothian and across Scotland in the years to come.”
New campaign encourages pro-planet habit forming for 79% of people who want to impact climate change, but struggle to do so
Research confirms pro-planet habits can form in 66 days
National campaign has the power to fast-forward the UK’s journey by as much as two years and save households around £250 on annual energy bills
A new consumer behaviour change campaign named ‘Planet Pledge’ is inviting every household in the UK to sign up to a 66-day environmental pledge starting on 17th January with the ambition of encouraging long-term pro-planet habits that will get the nation to net zero as much as two years before the Government’s 2050 target.
The campaign is based on research that reveals that 79 percent of people in the UK would like to do more at home to tackle climate change but can’t get into the habit of doing so.
Despite the popular belief that it takes 21 days to form a habit, the campaign has been designed around a behavioural science study undertaken by Dr Pippa Lally and colleagues at University College London, which found that the average time it took to form a habit is 66 days.
All members of the household can get involved – not just the bill payer – at www.planetpledge.co.uk.
Participants will receive a welcome guide to introduce as many as nine new energy-saving behaviours, each to be completed for a minimum of 66 days. Each week participants will receive an email with exclusive tips and advice on pro-planet habit forming from Dr Lally.
By signing up, households can reduce their home energy wastage by up to 20 percent, which would help the UK to reach its 2050 net zero target as much as two years sooner and save each household around £250 on their annual energy spend.
Utilita Energy, the UK’s only energy supplier created to help households use less energy, is behind the campaign, after revealing that the majority of people want to make positive changes in their behaviours at home (79%) and more than three in five people said it makes them feel good when they make an effort to reduce their carbon footprint (63%).[3] The Planet Pledge campaign will reward participants who share their efforts via social media, with eco-themed prizes, including a smartphone, washing machine and an eco-friendly staycation worth £3,000.
Dr Pippa Lally, Behavioural Scientist at University College London is an expert on habit forming. She said: “Forming pro-planet habits makes it easier for us to continue to work towards tackling climate change in our daily lives even when we are busy and distracted.
“The Planet Pledge is a great way to challenge ourselves to make alterations to how we behave – be that turning the tap off whilst brushing our teeth or turning lights off when we leave the room. Every little action will add up to make a big impact.”
The most common pro-planet behaviours that people across the UK already do are:
Recycle rubbish – 63%
Turn off unused lights – 61%
Re-wearing clothes (and not washing them after one wear) – 48%
Keeping the home heating to a healthy home heat – 46%
Using a reusable water bottle – 44%
However, some of the easiest and free ways to reduce the impact households have on the environment are still not being done by most people:
80% of those with a dishwasher don’t use the eco setting
70% of people have never used the eco setting on their washing machine
66% of people shower with no consideration of time
66% of people use standby instead of switching items off
58% of people leave items plugged in to use vampire energy
Utilita Energy’s well-established relationship with schools, football clubs (from grassroots through to the Premier League), community groups, and its nine High Street Energy Hubs will mean the Planet Pledge initiative has the power to reach hundreds of thousands of households right across the UK.
Sarah Mitcherson, Headteacher at Ridgeway Academy in Welwyn Garden City in Hertfordshire comments on why she thinks families will be keen to make their pledge:“As a school we do everything in our power to act in the interest of the planet.
“For the first time we’ve been able to invite every family to get involved with Planet Pledge, and all do something as a collective. We expect the campaign will be a great success, and we hope to keep the conversation going with families well after the 66-days.”
David James MBE, former England goalkeeper and environmentalist, comments on why he’s making a pledge to the planet:“I’ve been attempting to do the right thing by the planet for three decades – sometimes it works out, and sometimes, it just doesn’t.
“If the intention is there – which it appears to be for 79% of the nation – the habits can and will form, with the advice given by the week-by-week campaign.
“This is the first time I’ve ever known a brand to identify the barriers to positive behaviour change and go some way in helping consumers to get over them, which is really commendable.”
Archie Lasseter, Utilita Energy’s Sustainability Lead is responsible for getting the supplier to become a net zero business by 2030. He comments on why Utilita has been leading the way on ‘using less’ since 2003:“Energy suppliers exist with one main objective – to sell as much energy as possible and to make a margin.
“Utilita is very different. Our mission since launch has been to give as many homes as possible the technology and energy intelligence, they need to cut their energy wastage, and this latest campaign to promote habit-forming will support that.
“Back in 2019 we launched our award-winning Energy High 5 campaign, which has already reached almost four million households, and now we’re enabling every household to shave £250 off their annual energy bill. This latest research reveals that consumers want to do their bit for the environment, but just need a little help in doing so.”
The campaign follows on from the November launch of the hugely successful ‘Wear Warm’ campaign, which encouraged households not to go above 21 degrees at home and wrap up warm instead.
Reports from many of the 660 charity shops taking part in the campaign said the engagement with the idea has been fantastic for driving footfall and encouraging conversations around the healthy amount of home heat.
Signing up to make a ‘Planet Pledge’
Everyone can sign up to make their Planet Pledge from Friday 17th December 2021.
The campaign begins on Monday 17th January 2022 to celebrate the first day of the Energy Savings Trust’s ‘Big Energy Savings Week’.
Everyone taking part will be in with a chance of winning weekly prizes, including energy efficiency bundles and one uk-based eco holiday worth £3,000.
The UK Government sets out the background to the issue of wholesale gas prices and the action the it is taking to protect the UK’s energy supply, industry, and consumers:
There has recently been widespread media coverage of wholesale gas prices, and the effect this could have on household energy bills. The impact on certain areas of industry, and its ability to continue production, has also attracted attention.
This explainer sets out the background to the issue and the action the government is taking to protect the UK’s energy supply, industry, and consumers.
Natural gas prices have been steadily rising across the globe this year for a number of reasons. This has affected Europe, including the UK, as well as other countries around the world.
We have a diverse range of gas supply sources, with sufficient capacity to more than meet demand. The UK’s gas system continues to operate reliably and we do not anticipate any increased risk of supply emergencies this winter.
Why are there high global gas prices?
The prices that are currently visible reflect the high value being placed on gas at the present time, with prices being determined by global supply and demand. They are not necessarily representative of pre-existing contracts and therefore do not apply to all of the gas being consumed in the UK this winter.
Current prices reflect a number of factors including:
as the world comes out of COVID-19 lockdowns and economies reopen, we are seeing an uptick in global gas demand this year. *combined with a cold winter (which has an impact on gas demand as gas is often used for heating homes) this has led to a much tighter gas market with less spare capacity
in particular, high demand in Asia for Liquified Natural Gas (LNG), natural gas transported globally by ship, means less LNG than expected has reached Europe *some essential maintenance projects rescheduled from 2020 due to coronavirus coincided with necessary scheduled projects in 2021, while weather events in the US have adversely affected their LNG exports to Europe
How are high global gas prices impacting the UK?
The gas market is crucial to the UK’s energy supply because of its significance in heating, industry and power generation.
Over 22 million households are connected to the gas grid and in 2020, 38% of the UK’s gas demand was used for domestic heating, 29% for electricity generation and 11% for industrial and commercial use.
High gas wholesale prices have subsequently driven an increase in wholesale power prices this year.
In recent weeks, this trend has been exacerbated by the weather and planned maintenance at some power stations. This has resulted in unusually low margins for this time of year. These factors have combined to cause spikes in wholesale electricity prices, with a number of short-term markets trading at, or near, record levels.
While we are not complacent, we do not expect supply emergencies this winter.
Is our gas supply at risk?
The Great Britain (GB) gas system has delivered securely to date and is expected to continue to function effectively, with a diverse range of supply sources and sufficient delivery capacity to more than meet demand.
While our largest single source of gas supply continues to be the UK Continental Shelf (approximately 48% of total supply in 2020), the maturity of that source means we have to supplement supply from international markets.
Whilst the diversity of those international sources promotes our energy security, by reducing reliance on a particular source, the UK – as with other nations – is exposed to global trends in supply and demand which affect the price of gas traded at UK’s market hub (the National Balancing Point).
We have a wide range of supply sources including direct pipelines across the North Sea from Norway to the UK, our single biggest source of imports. We are also investing millions into scaling up strong renewable energy capacity and driving down demand for fossil fuels.
GB also has a number of gas storage facilities that act as a source of system flexibility when responding to short-run changes in supply and demand.
What is the government doing on this?
Energy security is an absolute priority for this government. The government works closely with the regulator and gas supply operators to monitor supply and demand.
While wholesale gas prices have increased internationally this year, the market continues to balance supply and demand through adjusting the prices at which energy trades take place. We have no reason to suggest this will not continue but will monitor the market.
National Grid Gas has a number of tools at its disposal to mitigate the risk of a gas supply emergency, including requesting additional gas supplies be delivered to the National Transmission System. Together with the Department for Business, Energy and Industrial Strategy (BEIS), National Grid Gas has robust response plans in place in the unlikely event that risk should materialise. Read plans for network gas supply emergencies.
Will this affect energy bills?
The high wholesale gas prices that are currently visible may not be the actual prices being paid by all consumers.
This is because major energy suppliers purchase much of their wholesale supplies many months in advance, giving protection to them and their customers from short-term price spikes.
The Energy Price Cap is also in place to protect millions of customers from the sudden increases in global gas prices this winter. Despite the rising costs of wholesale energy, the cap still saves 15 million households up to £100 a year.
The current global wholesale gas price situation as set out above could have an effect on companies.
Companies without longer-term contracts may face higher costs, but we expect that companies with longer-term contracts in place may have little exposure to the current high wholesale prices. If there were an event where a supplier fails, Ofgem would work to ensure that customers are moved to a new supplier, so they are not without energy.
How is the government helping poorer households?
Our Energy Price Cap will protect millions of customers from the sudden increases in global gas prices this winter.
We are also supporting low income and fuel poor households with their energy bills in a number of ways which demonstrates the government’s commitment.
This includes through:
the Warm Home Discount which provides eligible households with a £140 discount
in addition, Winter Fuel Payments and Cold Weather Payments will help ensure those most vulnerable are better able to heat their homes over the colder months
Vulnerable people and anyone in financial distress during this time should talk to their energy supplier, who will be able to discuss personal circumstances and consider options to help, including reassessing, reducing or pausing payments. Emergency measures have been agreed between government and energy suppliers to support those most in need during the disruption caused by COVID-19, and this agreement remains in place this winter. Read details of the agreement.
As set out in the Energy white paper, we plan to extend the Warm Home Discount until 2026, increase it to £150, and help an extra 780,000 pensioners and low-income families with their energy bills. With a total of 2.7 million to get support, with the vast majority to receive the money back automatically, without having to apply as at present.
Cold Weather Payments provide vulnerable households on qualifying benefits with financial support when the weather has been, or is forecasted to be, unusually cold. £25 is available for eligible households for each 7 day period of very cold weather between 1 November and 31 March.
Business and Energy Secretary meets and energy industry chiefs
Business and Energy Secretary Kwasi Kwarteng held a series of individual meetings with senior executives from the energy industry yesterday to discuss the impact of high gas prices, driven by international supply and demand factors.
During the calls, the Secretary of State was reassured that security of supply was not a cause for immediate concern within the industry. The UK benefits from having a diverse range of gas supply sources, with sufficient capacity to more than meet demand. As previously stated, the UK’s gas system continues to operate reliably and we do not anticipate any increased risk of supply emergencies this winter.
The Secretary of State stressed that energy security is an absolute priority for this government. We are confident that security of supply can be maintained under a wide range of scenarios. Great Britain also benefits from a diverse electricity mix, which is one of the reasons why we have one of the most reliable electricity systems in the world.
Whilst our largest single supply source of gas continues to be from domestic production – and the vast majority of imports come from reliable suppliers such as Norway – the UK’s exposure to volatile global gas prices underscores the importance of the government’s plan to build a strong, home-grown renewable energy sector to further reduce our reliance on fossil fuels.
The pressure being faced by some energy companies was also discussed during the meetings after four small suppliers ceased to trade in recent weeks. Ofgem has robust measures in place to ensure that customers do not need to worry, their needs are met, and their gas and electricity supply will continue uninterrupted if a supplier fails.
If the appointment of a Supplier of Last Resort is not possible, Ofgem and the Government have agreed processes in place to appoint a special administrator to temporarily run the business until such time as a new supplier can be found for the customers.
The Secretary of State also stressed the importance of protecting vulnerable customers during a time of heightened global gas prices. Government initiatives such as the Warm Home Discount, Winter Fuel Payments and Cold Weather Payments will help ensure those most vulnerable are better able to heat their homes over the colder months. The Energy Price Cap is also in place to protect millions of customers from the sudden increases in global gas prices this winter.
The Business Secretary will be meeting with Ofgem this morning to discuss the issues raised by the industry in more detail, and on Monday he will convene a roundtable with industry to plan a way forward.
The Secretary of State is also working in contact with colleagues across government to manage the wider implications of the global gas price increase.
Regions and nations of the UK blueprint for how NOT to deliver the green jobs revolution, says GMB Union
GMB, the energy union, has said the UK must learn from its own energy and industrial policy failures if it is to set the standard at the COP26 summit in Glasgow.
The union’s call comes after Shadow Business Secretary Ed Miliband said Boris Johnson must take ‘personal responsibility’ for the talks.
Gary Smith, GMB General Secretary, said: “Climate justice and economic justice must go hand-in-hand -which means delivering the jobs transition to help reach net zero.
“But with the world coming to Glasgow, the UK isn’t any closer to this than it was in 2015.
“The regions and nations of the UK are a blueprint for how not to deliver the green jobs revolution. Look at Scotland and the broken promises of 28,000 offshore wind manufacturing jobs and “a Saudi Arabia of renewables”. Instead supply chains have been starved of work and investment.
“Despite this, our political class persist in playing fast and loose with the futures of energy workers, and with security of supply.
“This is not how you take working class people with you on a journey to net zero.
“The UK can’t set the standards at COP26 unless we start learning the lessons from our own failures on energy and industrial policy.”
England v Denmark responsible for one of the biggest electricity pick-ups in modern times.
The Euro 2020 semi-final match saw a surge of 1400MW at half-time and 1300MW at full-time.
Pick-up for England-Germany round of 16 match was on a par with the 2011 Royal Wedding of William and Kate (1600MW)
England v West Germany 1990 (2,800MW) required just 200MW less than the 1999 Solar Eclipse.
OLBG reveals the top TV moments for electricity pick-up.
While football is on the brink of coming home (we’ll see! – Ed.), it is also producing record-breaking surges in electricity demand.
As the nation collectively sat down to watch England’s Euro 2020 semi-final match-up with Denmark on Wednesday night, demand for power skyrocketed by 1400MW at half-time and 1300MW at the end of 90 minutes, making it one of the biggest TV moments in terms of electricity pick-up in modern times.
Forecasts prior to the match suggested pick-up in the region of 1200MW, with millions of litres of water (via pumped storage) standing ready at Dinorwig, ready to be deployed in order for people to make their half-time cup of tea. And according to the grid’s control centre, ITV ad breaks only served to fuel movement at half-time.
Wednesday night’s pick-up was the same as the 2018 World Cup semi-final against Croatia (also 1400MW), but on this occasion Gareth Southgate’s side went one step further.
Research by OLBG shows the England-West Germany match-up at the 1990 World Cup still accounts for the biggest sports-related pick-up, falling just 200MW short of the 1999 Solar Eclipse.
Rank
TV Moment
Date
Pick-up in MW
1
Solar Eclipse 1999
11/08/1999
3,000
2
England v West Germany – World Cup Semi-Final
04/07/1990
2,800
3
The Thorn Birds
22/01/1984
2,600
4
England v Brazil – World Cup quarter-final
21/06/2002
2,570
5
Nigeria v England – group match
12/06/2002
2,340
6
Eastenders: Lisa admits shooting Phil
05/04/2001
2,290
7
The Darling Buds Of May
12/05/1991
2,200
8
England v Australia – Rugby World Cup Final
22/11/2003
2,110
9
Argentina v England – FIFA World Cup round of 16
30/06/1998
2,100
10
Italy v Argentina – World Cup semi-final
03/07/1990
2,000
11
England v Portugal – World Cup quarter-final
01/07/2006
1,960
12
Sweden v England – World Cup group stage
20/06/2006
1,830
13
Juventus v Man Utd – UCL semi-final
21/04/1999
1,820
14
Wedding of Charles and Diana
29/07/1981
1,800
15
England v Ecuador – World Cup round of 16
25/06/2006
1,700
16
England v Germany – Euro 2020
29/06/2021
1,600
17
Royal Wedding – William & Kate
29/04/2011
1,600
18
England v Croatia – World Cup semi-final
11/07/2018
1,400
19
England v Sweden – World Cup quarter-final
07/07/2018
1,400
20
Rugby World Cup Final – England v South Africa
02/11/2019
1,300
21
England v Colombia – World Cup round of 16
03/07/2018
1,200
22
England v Ukraine – Euro 2020 quarter-final
03/07/2021
960
23
Clap for Carers
Various
800
24
England v West Germany – World Cup 1966
30/07/2021
600
The Three Lions’ quarter-final thrashing of Ukraine registered a 960MW pick-up at half-time, which was good enough for 22nd in our rankings – the equivalent of 190 million light bulbs, or 530,000 kettles. Demand waned as the result became clear, with 450MW required at full-time with fans drifting off.
Prior to that, a 55-year wait for a win over Germany at a major tournament ended with a 2-0 win for England in their round of 16 tie, with the national control room confirming a 1GW pick-up at half-time and 1.6GW at full-time, surpassing the grid operator’s best guess of 900MW beforehand. That is the equivalent of 320 million light bulbs, or 888,000 simultaneously boiling kettles.
Demand for electricity during England’s last 16 tie against Germany at Euro 2020
Geoff Hurst’s infamous hat-trick goal and the famous words “They think it’s all over … It is now!” in England’s last major tournament win in 1966 – a 4-2 victory over West Germany at Wembley – accounted for a modest 600MW spike, while the regular Thursday night ‘Clap for Carers’ last year saw peak pick-up of 800MW.
Graph plotting demand during the infamous 1996 World Cup final
Britain’s electricity system operator – National Grid ESO – is tasked with matching the country’s supply and demand, second-by-second, making sure the lights – and televisions – stay on!
In fact record viewing figures for the four-hours-and-five-minutes broadcast on ITV were recorded, and those, along with the electricity pick-up are set to be surpassed for Sunday’s showpiece final when England take on Italy at Wembley.
Businesses in Edinburgh are on course to save more than £8m on their energy bills with the support of a Scottish Government-funded programme.
Small and medium-sized enterprises (SMEs) have been taking advantage of a free service run by Zero Waste Scotland to discover ways they can cut their energy use and reduce carbon emissions.
Marissa Lippiatt, head of resource efficiency at Zero Waste Scotland, said: “It is pleasing to see so many businesses in Edinburgh deciding to take action to reduce their energy use.
“Not only does this add profit directly to their bottom line, but it also goes a long way to helping Scotland meet its target to reduce carbon emissions to net zero by 2045.”
Since the start of 2016, the impartial advice given to companies in Edinburgh has identified £21m of potential energy savings through things like heating, lighting and building upgrades.
To help SMEs finance the recommendations the Scottish Government currently provides interest-free loans and cashback grants.
“The actions taken by Edinburgh SMEs to implement our recommendations will reduce their collective carbon output by 22,000 tonnes. That’s equivalent to the emissions from 78 million car miles.”
Throughout Scotland, companies are on course to make close to £207m of lifetime energy savings with the Highland Council area leading the way with £18m.
More than 720,000 tonnes of carbon emissions can be cut from the atmosphere nationally because of the changes recommended. This would equate to the emissions created from more than two billion car miles, or 102,400 journeys around the world.
Marissa (above) said: “We have an increasing number of businesses coming to us for support and advice which demonstrates the growing awareness of the climate emergency and how we can all take steps to make changes.”
Zero Waste Scotland’s Energy Efficiency Business Support Service provides free, independent advice to SMEs, guiding them to introduce more energy efficient technology. The programme is funded by the Scottish Government and the European Regional Development Fund.
Businesses can apply for an interest-free Scottish Government SME Loan of £1,000 to £100,000 with a maximum cashback grant of £20,000 for eligible measures.
