Centrica
British Gas owner Centrica is expected to write off £200m when it pulls out of the country’s nuclear new build programme in the new year. Centrica has the option of taking a 20 per cent stake in building nuclear power stations at Hinkley Point in Somerset and Sizewell in Suffolk alongside French group EDF. However, chief executive Sam Laidlaw, right, is almost certain to confirm that Centrica will leave the project at the “final investment decision”in January, having spent virtually all its share of the £1bn in upfront costs that the companies had budgeted to the end of 2012.
Independent on Sunday 2nd Dec 2012 more »
Centrica is weighing a return of up to £500m cash to its shareholders early next year, The Sunday Telegraph has learnt. The plan, most likely to take the form of a share buyback, is understood to be one of a number of options that could follow withdrawal from a project to build new nuclear plants in the UK. The British Gas owner will announce its full-year results at the end of February, which would be the most likely point for it to review its shareholder returns. By then, it is due to have taken a decision on whether to utilise its 20pc option in the EDF-led consortium to build reactors at Hinkley Point in Somerset. Centrica is widely expected to withdraw amid concerns over spiralling costs, with the plant estimated to cost £14bn, and doubts about the attractiveness of returns on the investment.
Telegraph 1st Dec 2012 more »
Energy Bill
The long-awaited Electricity Market Reform (EMR) has finally arrived, and not just the wind crowd is pleased. Energy specialist Simon Hobden of law firm Pinsent Masons says: “It’s a significant improvement on the package that came out in May. It comes across as much more thought through. It has broadly been received positively by the investor community.”
Sunday Herald 2nd Dec 2012 more »
SSE, the nation’s second-biggest supplier, came up with the most accurate verdict, calling the Energy Bill “over 1,000 pages of information, which shows just how complicated the proposed electricity market reforms have become”. Yet for SSE investors, the confusion may be no bad thing. Chief executive Ian Marchant’s response to the chaos seems to have been to minimise his exposure to the shifting regulatory sands. Last year he pulled out of a consortium to build new nuclear plants. He has shut down a pair of old gas plants but isn’t rushing to replace them with new ones. Instead, he is concentrating on onshore wind, which is among the cheapest low-carbon options.
Sunday Times 2nd Dec 2012 more »
Sizewell
I DON’T believe it is possible to have a credible green policy without including nuclear in the mix – and given that there are already two nuclear stations at Sizewell, the idea of a third station seems reasonable. However the French government, sorry EDF Energy, must not be allowed to get away with building this on the cheap. On the other side of the channel if you want to build major projects like this, then Electricite de France (to give the company its full title) is expected to provide adequate compensation – new schools, roads, infrastructure projects. Therefore it is not unreasonable to expect EDF to provide adequate compensation for us in Suffolk – notably a by-pass for the four villages on the A12 that lie between Ipswich (where many of its staff live) and the power station.
Ipswich Star 27th Nov 2012 more »
Fuel Poverty
Soaring fuel bills are leading to acute power rationing among many families as one in four say they are skipping meals to meet fuel costs. The “heat or eat” dilemma is becoming one of the most toxic issues for the coalition as it battles to convince the public it is on their side when it comes to curbing the power of the energy giants. A new poll of 2,000 people by Onepoll for Ovo Energy reveals that over a third of homes are rationing power. The energy company claims inflation-busting rises of up to 12% have left 70% of British homes forced to limit their power consumption. There are concerns more families are at an increased risk of becoming ill as a result of switching off their heating.
Guardian 2nd Dec 2012 more »
Gas
George Osborne is expected to use his Autumn Statement this week to announce tax breaks for companies that carry out controversial fracking, arguing that boosting the shale gas industry is vital to economic growth. Despite fears from environmental groups and local communities, the Government will publish a gas strategy paper, which will give the green light to shale gas extraction, alongside the Chancellor’s economic update. With the cost of fuel soaring, Mr Osborne is expected to say that giving the go-ahead to shale will cause gas prices to fall and in turn reduce household bills, as well as creating jobs.
Independent on Sunday 2nd Dec 2012 more »
Cuadrilla is poised to spearhead the creation of a new UK industry in shale gas extraction, its chief executive has said, as the company prepares to resume “fracking” in Lancashire. The Chancellor will this week throw his weight behind plans for fracking, when he is expected to announce the creation of a new Office for Shale Gas to help shape the nascent UK industry. Mr Osborne has already said he is considering tax breaks for shale gas. Ministers will also unveil a new gas generation strategy, setting out plans for 20GW of new gas-fired generation – about 20 power plants – by 2030. The plans will alarm environmentalists but cheer those who believe shale gas could provide a source of cheap gas for the UK.
Telegraph 1st Dec 2012 more »
Depending on who you believe, Francis Egan, the private equity-backed chief executive of energy firm Cuadrilla, is either an energy maven shaping the future of Europe’s embryonic fracking industry, or an environmental criminal who won’t stop drilling until Blackpool blows up.
Telegraph 1st Dec 2012 more »
This week the UK Government could at least show it has a desire to be different. A proportionate but positive response on the need to promote shale gas would be a good start. As would a nicer name for fracking.
Telegraph 1st Dec 2012 more »
GEORGE OSBORNE is to unveil a new dash for gas this week, with plans to build 20 power stations and incentives to develop Britain’s shale gas reserves. The decision to back gas will be part of the chancellor’s growth plans in his autumn statement, answering industry fears about the high price of green power and the looming threat of blackouts. It will give a clear signal that Osborne will place economic growth ahead of Britain’s ambitious climate-change targets, a move that is likely to anger his coalition partners and environmentalists. Controversially, the chancellor is expected to hint at future tax breaks for shale gas.
Sunday Times 2nd Dec 2012 more »
Renewables
POWER generators are close to a landmark deal to pay out hundreds of millions of pounds extra to overcome opposition to wind farms.Utilities have agreed in principle to quintuple “community benefit” payments from £1,000 for each megawatt of installed capacity to £5,000. The pledge is contingent, however, on the government keeping subsidies at current levels. The Department of Energy and Climate Change launched a review of the economics of wind this year after more than 100 Tory MPs signed a letter calling for state payouts to be slashed.
Sunday Times 2nd Dec 2012 more »
