Energy Costs
Energy bills are going to rise, and it’s mainly the government’s fault – that was the core message of a number of articles covering a new report from energy company Npower this morning. Npower claims household’s will paying £156 more in 2020 for gas and electricity than the government predicts. The main reason, it says, is government policies designed to promote a transition to a low carbon economy. But the government has rejected Npower’s projections, with climate change minister Greg Barker maintaining the policies will save households money in the long run. So how do the predictions stand up? How do they relate to other estimates of how your energy bill is going to change? And most importantly, what are the assumptions? Appearing on the BBC’s Today programme this morning, Npower’s chief executive, Paul Massara called for a more mature conversation about future energy costs. The main thrust of his argument is that rising costs will largely be beyond suppliers’ control, despite what the public may think. Npower’s projections places blame for the cost increase at the government’s feet, based on an assumption that energy efficiency policies won’t deliver any reduction in demand. This is not the first time the argument has been made, and the general view seems to be that it has some merit. Slow take-up of the Green Deal programme will only reinforce that view. But coming from one of the big six power companies, this report may be an effort to shift blame for price hikes away from energy company profits and back onto the government.
Carbon Brief 16th July 2013 read more »
Greg Barker contests npower’s claim that policies to deliver low carbon economy are main factor behind a predicted 19 per cent rise by 2020. The ongoing row over future increases in energy bills has cranked up another notch, after RWE npower today published new research predicting that the average household bill will rise £240 to £1,487 by 2020, driven in large part by the government’s green policies. However, the government moved quickly to challenge RWE npower’s predictions, arguing that energy efficiency measures will help to offset upward pressure on electricity prices, while also stressing that recent increases in bills have predominantly been the result of rising gas prices. Despite noting that continued growth of developing economies like India and China is likely to drive commodity prices up overall and that new resource such as shale gas will not outweigh the pressures driving costs upwards, npower goes onto suggest that gas prices will fall from making up £385 of an average bill in 2013 to £340 in 2020. However, the company does not include the cost of carbon in its calculations of gas prices, instead lumping the UK’s carbon floor price and EU emissions trading scheme into the policy costs. Energy consumption is also held flat in the company’s modelling, so there is no consideration of the potential impact of energy reduction policies on average bills. Paul Massara, chief executive of nPower, said consumers need to be told of the costs of addressing the UK’s poor housing stock and encouraging investment required in new infrastructure, so they can take action to reduce their energy use.
Business Green 16th July 2013 read more »
Energy and Climate Change Secretary Ed Davey has criticised energy giant npower over its latest warnings that energy bills are being driven up as a result of government policies, insisting the company’s modelling has come up with some “ridiculous” projections.
Business Green 16th July 2013 read more »
Household energy bills will rise £240 a year by 2020, due largely to the mounting cost of government green policies, energy giant RWE npower has claimed. The “big six” power provider claimed energy company profits were not to blame for rising bills, and said consumers should know the true cost of government investment in greener forms of energy production and efficiency programmes, which it said will be the main driver behind a rise in bills from £1,247 today to £1,487 by the end of the decade.
Guardian 16th July 2013 read more »
Today’s report by RWE npower is to be welcomed for the simple reason that it gives us some more numbers to work with in the – let’s be honest – near-futile game of trying to estimate what our energy bills will be in 2020 and beyond. No one knows with certainty – despite what they might tell you – what the price of oil, gas, nuclear, etc, is going to be a decade from now. Therefore, all such assumptions and projections must be viewed with a degree of scepticism and perspective. The battles between Decc and its critics over the cost of its low-carbon energy policies will no doubt continue, but the report performs the important task of breaking down our energy bills into categories. Personally, I would like to see this information shown on energy bills today and I join those in calling for more transparency for consumers about the various components that make energy the price is it today.
Guardian 16th July 2013 read more »
Energy Policy
Catherine Mitchell: the British energy system has developed six characteristics over the last century which raise concerns for Britain’s ability to successfully undertake the transition to a sustainable economy: (1) our centralised energy system; (2) the dominance of a few large companies which expect to make money selling energy; (3) the laissez fair market orientated policy paradigm, including our system of regulation, which undermines a strategic approach; and then as a result of these first three factors: (4) the inflexible way we operate the energy system; (5) the lack of headway we have made in renewable energy deployment and in improving the energy efficiency of our system; and (6) the difficulties we have in innovating whether it be with technologies, new entrants, new business models, new ways of operating the system and new relationships with energy, such as local authority or customer involvement. In an article for the New Statesman, and at a Green Alliance meeting in London recently, he clarified, amongst other things, his support for 2030 European renewable energy and energy efficiency targets and said the Green Investment Bank (GIB) would be allowed to borrow (as occurs with the successful KfW bank in Germany). In this way, the Labour Party differentiates itself from the Coalition Lib Dems – previously thought of as a Party which cared about the environment, and the Tories – now trapped in some depressing climate sceptic versus ‘green’ brawl. Either way the Labour Party is beginning to look like a possible home for (some) discontented green voters.
IGov 16th July 2013 read more »
Caroline Flint’s speech to PRASEG Annual Meeting 10th July.
Labour Online 10th July 2013 read more »
MoX
A LABOUR MP has tabled an early day motion in the House of Commons blasting proposals to build a second MOX (mixed oxide) plant at Sellafield as “outrageous.”
Whitehaven News 15th July 2013 read more »
Radwaste
WASTE from Oldbury Power Station could be stored just a few miles away at the Berkeley nuclear plant over the next three decades. The Nuclear Decommissioning Authority (NDA) is currently considering various options to reduce the overall cost and environmental impact of the decommissioning process at several plants in the UK, including Oldbury and Berkeley.
Gloucestershire Gazette 16th July 2013 read more »
Communities secretary Eric Pickles has given the go-ahead to the expansion of a hazardous waste landfill site in Northamptonshire. The East Northants Resource Management Facility (ENRMF) in King’s Cliffe, run by waste firm Augean, landfills low-level radioactive waste from nuclear power stations, science and research facilities and hospitals. Augean put forward plans to increase the capacity of an existing soil treatment plant at the site from 100,000 to 150,000 tonnes per annum of contaminated materials, and for a new landfill void for hazardous wastes and low-level radioactive waste.
Managing Recycling and Waste 16th July 2013 read more »
Magnox
INDUSTRIAL services firm Hertel has retained a contract to provide access and insulation services at 10 nuclear power stations.Magnox Ltd, responsible for managing 10 of the UK’s first generation of nuclear power stations, has hired Hertel to provide scaffolding, asbestos removal, insulation maintenance and mechanical engineering services over a four-year period, which can be extended to six.
Business Desk 16th July 2013 read more »
Opinion Poll
UKERC survey finds 82 per cent of people are worried about the UK becoming too dependent on energy from other countries. Around four in five people are worried about the UK becoming too dependent on energy from other countries and want to see a reduction in the use of fossil fuels, a new report has revealed. Research carried out by a team based at the Universities of Cardiff and Nottingham also found that 74 per cent of people questioned are very or fairly concerned about climate change. The data comes from a series of six in-depth deliberative workshops and a nationally representative survey of 2,441 people conducted by Ipsos MORI and funded by the UK Energy Research Centre (UKERC).
Business Green 16th July 2013 read more »
An in-depth survey of public attitudes to energy found that four in five people want to see a reduction in the use of fossil fuels, with a similar number supporting greater use of solar or wind power. But academics who compiled the report claimed that distrust of energy companies and ministers is a “concern” which could prevent people from adopting environmentally friendly technology.
Telegraph 16th July 2013 read more »
Flamanville
A 154-meter high hoist is used to install a dome on the building housing nuclear reactor at the site of the third generation European Pressurised Water Reactor in Flamanville, France. The nuclear reactor will be put into service in 2016.
Guardian 16th July 2013 read more »
Russia
So much for the lessons of Fukushima. Never mind oil spills, the Russian Federation is preparing an energy initiative that, if it has problems, will inject nuclear material into the maritime environment. Speaking to reporters at the 6th International Naval Show in St. Petersburg, Baltiskii Zavod shipyard general director Aleksandr Voznesenskii said that the Russian Federation’s first floating nuclear power plant “should be operational by 2016.”
Commodities Now 17th July 2013 read more »
Japan
Fukushima Crisis Update 12th to 15th July. TEPCO’s contamination issues worsened this week—again—as the utility announced that high levels of radioactive strontium-90 were discovered in groundwater taken from a well located near reactor #3 at the crippled Fukushima Daiichi power plant.
Greenpeace 16th July 2013 read more »
Iran
European Union foreign policy chief Catherine Ashton on Tuesday called for the resumption “as soon as possible” of talks between global powers and Iran on its contested nuclear programme.
EU Business 16th July 2013 read more »
Trident
Kate Hudson: Former Conservative Defence Minister Michael Portillo has recently described Trident as a “waste of money” which is “completely past its sell-by date”, and “neither independent” nor “any sort of deterrent”. Lord Des Browne, Labour’s former Defence Secretary, who set the wheels in motion for Trident replacement in 2007, has now said that full replacement is ‘neither strategically sound nor economically viable’ and that 24-hour patrols by nuclear subs – known as Continuous At-Sea Deterrence (CASD) – should be stopped. Even former Prime Minister Tony Blair, not known for his powers of self-criticism, has written that “the force of common sense” was against replacing Trident. He described its purpose as “non-existent in terms of military use”. So, wise when out of government, why is it that so many serving politicians seem to have an inability to grasp the argument against committing more than £100 billion to modernise our nuclear weapons. Ahead of the parliamentary vote in 2016, when Britain will decide if it wants to remain nuclear-armed for another 30-40 years, for once, a reasoned and sensible discussion must be held. We can’t wait for hindsight wisdom this time.
Huffington Post 16th July 2013 read more »
The Liberal Democrats have called for Britain’s nuclear submarine deterrent to be downgraded despite an official warning that it could make Britain “vulnerable” to attack.
Telegraph 16th July 2013 read more »
When Ed Miliband was elected leader he said the UK now needs “to look very carefully at whether renewing Trident is the necessary or the right thing to do”. There is now an active debate in the party. Some, like the former defence secretaries George Robertson and John Hutton, are firmly in favour of a like-for-like replacement; others, like the former defence secretary Des Browne, are in favour of dropping CASD but retaining nuclear weapons; while the former chief whip Nick Brown and many backbenchers support relinquishing nuclear weapons altogether. Miliband confirmed at last year’s party conference that Labour policy on Trident replacement would be reviewed after the publication of the Trident Alternatives Review and the Basic report. With the former now published and the latter due soon, Ed Miliband will face a difficult choice: stick with the Blair and Tory plan of nuclear business as usual; or demonstrate international leadership by by ending permanent deployments and further reducing our nuclear arsenal.
Guardian 17th July 2013 read more »
For more than half a century, British public life has had an existential argument about nuclear weapons. But it has rarely had a nuanced debate between different nuclear options. There is, of course, a big difference between the two. In the argument over nuclear weapons, there are two sides, each passionate and sincere. Each regards the other as the slaves of a dangerous doctrine. One, voice of a tradition that goes back to the pioneers of CND and to early 20th century pacifism, abhors all nuclear weapons. The other, voice of the postwar British governing class of all main parties, regards the maintenance of nuclear weapons as fundamental to Britain’s standing in a nuclearised world. It also fears that any dilution of the policy would be perilous internationally and domestically. The Liberal Democrats, who insisted on the review as part of the coalition agreement, deserve credit for making it happen. For all its limitations, this review is a landmark step in opening the issues to debate. The suggestions are not very radical – a major argument against them is that they are not radical enough. But it is absurd that the Conservatives, plus some Labour ex-defence secretaries, should treat the possibility of Britain taking a small step down the nuclear ladder as taking a risk with national security. The public’s views on nuclear weapons are far more nuanced than this. They are ahead of the political class. The Tories and Labour should join the Lib Dems in treating the issues seriously, not wallowing in the lazy nonsense that the status quo is the only option.
Guardian 16th July 2013 read more »
The Liberal Democrats have called for an end to round-the-clock patrols by the Royal Navy’s nuclear missile submarines which have formed the basis of the UK’s ultimate deterrent for the past 45 years.
Stirling Observer 16th July 2013 read more »
The Coalition was locked in a furious battle today over Lib Dem plans to slash the UK’s nuclear defences. Nick Clegg’s party said the Trident fleet of submarines should be cut from four to at least three – ending decades of continuous at sea nuclear deterrent. A Government review said cutting the fleet to three subs would shave £4billion off the estimated £80billion cost of renewing Trident
Mirror 16th July 2013 read more »
Britain should “step down the nuclear ladder” and save money by ending its cold war posture of round-the-clock patrols by a nuclear-armed submarine, the Liberal Democrat leadership said on Tuesday – clashing with its Conservative coalition partners as Whitehall released its review on alternatives to Trident.
Guardian 16th July 2013 read more »
ITV 16th July 2013 read more »
Channel 4 News 16th July 2013 read more »
Jim Murphy MP, Labour’s Shadow Defence Secretary, responding to the Government’s Trident Alternatives Review, said: “Labour has always said that we are committed to the minimum credible independent nuclear deterrent, which we believe is best delivered through a Continuous At Sea Deterrent. It would require a substantial body of evidence for us to change that, but this review does not appear to offer such evidence.”
Labour 16th July 2013 read more »
Welsh anti-nuclear campaigners have urged the UK Government to scrap Britain’s nuclear arsenal instead of considering alternatives to the Trident missile system. CND Cymru responded to a long-awaited report on the UK’s nuclear future with disappointment and urged Welsh MPs to oppose the renewal of a nuclear deterrent.
Wales Online 16th July 2013 read more »
The Financial Times believes Britain must retain its nuclear weapons capability. The ability to inflict “unacceptable damage” on a potential aggressor is the ultimate guarantee that Britain will not be invaded or destroyed. The possession of nuclear weapons is critical to the status of both Britain and France as Europe’s two leading military powers and as members of the UN Security Council. Recognising this, none of Britain’s three main political parties today advocates unilateral nuclear disarmament.
FT 16th July 2013 read more »
Letters: Under the Lib Dem plan, if Britain faced a deteriorating international situation, rather than having a known and effective nuclear deterrent already at sea, it would have to deploy one of its “Trident Lite” boats (Leading article, July 16). Any competent intelligence operation would notice such an action and alert the world. International condemnation at the UN would follow this “aggressive escalation” and British and allied interests would be put at increased risk of hostile response. An already bad situation would deteriorate further, edging closer to the conflict that Trident Lite is meant to deter.
Telegraph 17th July 2013 read more »
Renewables
Helius Energy’s £60.5m biomass plant turning whisky by-products into energy and heat has today started commercial operation after successfully completing a test period. The site at Rothes in the Scottish whisky heartland of Speyside uses by-products from nearby distilleries to produce renewable energy and a liquid animal feed product known as Pot Ale Syrup.
Business Green 15th July 2013 read more »
Biomass
The government is turning away from its controversial policy of subsidising UK power stations to generate electricity from burning wood. It is proposing that subsidies for bespoke biomass burning plants should be capped at 400 MW. It will end subsidies for biomass burning in existing stations by 2027. There was an outcry in May when the BBC revealed that millions of tons of wood were being shipped from the USA to help meet Britain’s renewables targets.
BBC 16th July 2013 read more »
Energy Efficiency
The UK’s flagship energy efficiency programme is being fatally undermined by the Treasury and an ongoing battle over the Conservative party’s future strategy. That’s the view of the former energy and climate Secretary of State Chris Huhne, who says the Green Deal scheme needs stronger support from the top of government. According to government statistics, buildings that leak heat and waste energy account for 43% of the UK’s total greenhouse gas emissions. Around 14 million homes in the UK require better insulation, but in June statistics revealed only 245 households had agreed a Green Deal Plan since its launch in January 2013. The real problem has been it required more than one department to play ball, not just DECC, but also the Treasury, and it has not been prepared to see the jobs advantages, the living standards advantages of doing that.”
RTCC 16th July 2013 read more »
In his first significant intervention since leaving jail, the ex-Cabinet minister signalled the Treasury is to blame for a lack of interest in the Green Deal – a flagship scheme offering people loans to pay for insulation, solar panels or green boilers. Mr Huhne’s comments suggest he has not entirely exited the political scene after serving a quarter of his eight-month sentence for perverting the course of justice.
Telegraph 16th July 2013 read more »
Micro-CHP
According to industry analysis from Edinburgh-based Delta-ee, fuel cells are now outselling engines as the most common technology employed in micro-CHP systems for the first time on record. According to their analysis, until 2012, the global micro-CHP market was dominated by products powered by combustion engines but there has since been a shift.
COSPP 15th July 2013 read more »
Fossil Fuels
Greenpeace Save the Arctic activist: ‘Shell is in the shadow of the Shard’. Victoria Henry discusses the lead up to the stunt, and the psychologically and physically gruelling climb itself.
Guardian 16th July2013 read more »
