Category Archives: Energy industry

UK ‘helping Russia pay for its war on Ukraine’ via loophole on refined oil imports

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£2.2bn-worth of oil processed in China, India and Turkey – to whom Russia supplies crude – was imported in 2023, data shows

The UK has been accused of “helping Russia pay for its war on Ukraine” by continuing to import record amounts of refined oil from countries processing Kremlin fossil fuels.

Government data analysed by the environmental news site Desmog shows that imports of refined oil from India, China and Turkey amounted to £2.2bn in 2023, the same record value as the previous year, up from £434.2m in 2021.

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Middle East conflict risks sharp rise in oil prices, says IMF

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In the UK, anxiety over the crisis after Iran’s missile strike on Israel drives down UK shares

An escalating Middle East conflict risks leading to higher oil prices, a reversal of the recent fall in inflation and a puncturing of the optimistic mood in financial markets, the International Monetary Fund has warned.

The Washington-based IMF said it was closely monitoring events in the region after Iran’s missile strike on Israel at the weekend and stressed the possibility that a war between the two countries could lead to higher interest rates.

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Scottish Power to pay out £1.5m after overcharging 1,700 households

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Supplier mistakenly charged direct debit customers at rate meant for those who pay when they get bills

Scottish Power is to pay £1.5m in refunds and compensation after overcharging nearly 1,700 households at the height of the energy crisis and in previous years, paying out an average of £294 to each customer.

The energy regulator, Ofgem, said it agreed the redress package with the supplier after it confirmed that, between 2015 and 2023, it mistakenly charged 1,699 direct debit customers at a higher rate that should only apply to those who pay when they receive their bill.

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‘An energy war is being waged’: former oil boss warns of price rises after Ukraine infrastructure attacks

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Andriy Kobolyev calls for more weapons after Russia destroys one of Ukraine’s largest power plants

A dramatic rise in European energy prices is inevitable if the Russian destruction of Ukrainian energy infrastructure continues unabated, the former chief executive of Ukraine’s state-owned oil company has warned.

Andriy Kobolyev, a former head of Naftogaz, said in an interview with the Guardian: “Russia is trying to wage a global energy war and Ukraine is part of that war and if the markets perceive that Russia is winning that war the consequences will be very serious. You will see a spike in prices all round the globe”.

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Abu Dhabi state oil company reportedly looked at buying BP

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Adnoc decided move was not right fit but it is latest sign of foreign buyers circling UK firms

Abu Dhabi’s state-owned oil company reportedly recently explored a multibillion-pound bid for BP, in a sign that depressed share values in London are making even the biggest British businesses takeover targets.

Abu Dhabi National Oil Company (Adnoc) considered options including buying BP or acquiring a large stake before deciding it was not the right fit and abandoning preliminary discussions, according to Reuters.

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Only 1,500 people compensated so far over prepayment meters, Ofgem says

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Regulator says energy firms planning payments for another 1,000 customers after reviewing 150,000 forced installations

Only 1,500 people have been compensated by energy companies for the forced installation of prepayment meters over the past year, figures show.

The energy regulator, Ofgem, said that initial information from gas and electricity suppliers showed that 1,502 customers had received compensation totalling £342,450.

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US aiming to ‘crack the code’ on deploying geothermal energy at scale

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Recent $74m investment made alongside assessment that 10% of electricity could be generated by geothermal by 2050

A limitless supply of heat exists beneath our feet within the Earth’s crust, but harnessing it at scale has proved challenging. Now, a combination of new techniques, government support and the pressing need to secure continuous clean power in an era of climate crisis means that geothermal energy is finally having its moment in the US.

Until recently, geothermal has only been viable where the Earth’s inner heat simmers near the surface, such as at hot springs or geysers where hot water or steam can be easily drawn to drive turbines and generate electricity.

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Energy bills: standing charges are not standing still

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Despite a 12.3% cut in April’s energy price cap, there is an important fixed element in your bill that is rising again

“Great news! Your unit rates are going down.” E.ON’s letter to customers starts with glad tidings – but, as it soon admits, there is an element of their bills that is set to go up in most parts of the country.

Despite a headline cut of 12.3% in April’s energy price cap, yet again standing charges are rising. In E.ON’s case, on its Next Flex tariff, electricity charges are due to rise from 62.205p to 67.9041p – an increase of just over 9% – while for gas, charges go up from 29.595p to 31.894p (up almost 8%).

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British Gas owner doubles boss’s pay to £8m – despite qualms over previous rise

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Details of Chris O’Shea’s ballooning package emerge in Centrica’s annual report after company reports bumper profits

The boss of the British Gas owner, Centrica, has seen his earnings nearly double to £8.2m, despite having admitted that his smaller pay packet the previous year was “impossible to justify”.

Chris O’Shea earned a basic salary of £903,000, which was topped up by cash and share bonuses worth an extra £7.3m.

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Sixteen states sue US over ban on approvals for LNG exports

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States including Texas, Louisiana and Florida say federal government lacks authority to broadly deny permits

Sixteen US states, including Texas, Louisiana and Florida, have filed a lawsuit to challenge the US federal government’s ban on approving applications to export liquefied natural gas, the office of Texas attorney general Ken Paxton said on Thursday.

The lawsuit argues the federal government lacks the authority to broadly deny those permits.

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World’s largest solar manufacturer to cut one-third of workforce

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China’s Longi looks to slash costs as renewable energy sector faces tough headwinds from inflation

The world’s largest solar manufacturer has slashed nearly a third of its workforce after a cost-cutting drive that included telling staff to only print in black and white fell short and as a chill ripples through the renewable energy sector.

China’s Longi is to cut as much as 30% of its workforce, in an acceleration of cost reductions that began late last year, Bloomberg reported.

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Climate activists across Europe block access to North Sea oil infrastructure

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Blockades at facilities in Germany, the Netherlands, Norway and Sweden, with protests in Scotland and action expected in Denmark

Climate activists in four countries are blocking access to North Sea oil infrastructure as part of a coordinated pan-European civil disobedience protest.

Blockades have been taking place at oil and gas terminals, refineries and ports in Germany, the Netherlands, Norway and Sweden, in protest at the continued exploitation of North Sea fossil fuel deposits.

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MPs open inquiry into success of UK Treasury sanctions on Russia

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Treasury committee to consider case for targeting buyers of Russian oil and gas as Moscow weathers penalties

The Treasury committee on Thursday opened an investigation looking at the effectiveness of the UK’s economic sanctions on Russia, including whether the measures need to be widened to cover the buyers of Russian oil and gas.

The MPs will take evidence on the work of the Office of Financial Sanctions Implementation (OFSI), part of the Treasury, which implements and enforces the sanctions in the UK, including on implementation within the insurance and shipping sectors.

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Tata confirms Somerset will be home to £4bn battery factory

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Indian conglomerate says gigafactory in Bridgwater will bring about 4,000 jobs to region

The Indian conglomerate Tata has confirmed Bridgwater in Somerset as the site of its new £4bn battery factory, which will bring about 4,000 jobs to the region.

Tata’s battery business, Agratas, said it had bought land at the Gravity Smart campus off the M5, just outside the town.

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Shell must clean up pollution before it leaves Niger delta, report says

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Firm told it must take responsibility for toxic legacy of pollution and safe decommissioning of abandoned oil infrastructure

The oil firm Shell cannot be allowed to withdraw from the Niger delta before it takes responsibility for its toxic legacy of pollution and the safe decommissioning of abandoned oil infrastructure, a report says.

Shell plc is preparing to divest from the delta but a report warns that it must remain until it has cleaned up its legacy of pollution.

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Labour would lift block on onshore windfarms, says Ed Miliband

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Tory government has ‘ducked’ difficult decisions, leading to higher bills, says shadow energy secretary

Labour has claimed a “culture of inertia and stasis” has blocked renewable energy projects under the Conservatives and says the party will overturn a de facto onshore wind ban “at the stroke of a pen” if it wins the general election.

The shadow energy secretary, Ed Miliband, told energy industry executives at a conference in London on Tuesday that Labour would immediately rip up a decade-long effective block on large onshore wind developments in England if elected.

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British Gas launches fixed-rate energy deal offering 12% saving on price cap

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Price Promise tariff gives discount on current cap and guarantees to be at least £1 per fuel under April one

British Gas has launched a fixed-rate gas and electricity deal that offers a 12% saving over most existing price-capped tariffs, adding a new choice to the hard-to-navigate home energy market.

For the past two winters, consumers have largely been spared having to seek out the cheapest deal, because, in almost all cases, it was their supplier’s price cap-protected standard tariff.

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Bank of England governor dampens hopes of interest rate cut

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Andrew Bailey says cost of living had been higher than expected in December despite ‘encouraging’ inflation news

The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.

Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was “encouraging” that inflation had remained unchanged at 4% in January but the previous month’s figure for the cost of living had been higher than predicted.

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Make used electric cars cheaper and tackle battery fears, peers tell ministers

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Grants needed towards buying EVs as well as a battery health testing standard to reassure consumers

Ministers need to intervene to boost the secondhand electric vehicle market and allay “uncertainty and concerns” over the health of their batteries, a House of Lords committee has said.

Peers on the environment and climate change committee urged the government to step up efforts to encourage electric vehicle adoption amid consumer jitters over the cost of vehicles, the longevity of their batteries and the availability of charging points.

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Legal action launched against ‘rip-off’ secret commissions on UK firms’ energy bills

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Thousands of small businesses sue for return of brokers’ fees that often go undisclosed in billing

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Businesses across the UK have been forced to pay an extra 10% on average for their gas and electricity because suppliers routinely add third-party broker commissions to their bills, according to a leading litigation law firm.

Thousands of small businesses have joined a group legal action, led by the law firm Harcus Parker, to claw back up to £2bn in undisclosed broker fees added to their energy bills.

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