Category Archives: Energy industry

Truss says Nord Stream gas pipeline damage ‘clearly sabotage’

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Russia is suspected to have carried out explosions to put pressure on western energy supplies

Liz Truss has said a series of explosions that severely damaged Russia’s undersea Nord Stream gas pipelines were an act of sabotage.

In a joint report delivered to the United Nations last week, the Danish and Swedish governments have claimed that the leaks in the Nord Stream gas pipelines, which can carry gas to Germany, were caused by blasts equivalent to the power of “several hundred kilograms of explosive”.

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UK isolated as EU agrees windfall tax on energy firms

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Levy could raise €140bn, and energy ministers also set targets to cut electricity use

EU energy ministers have agreed to levy windfall taxes on energy companies’ profits, and to cut electricity use, but remain at loggerheads over proposals to cap the price of gas.

Meeting in Brussels on Friday, the bloc’s 27 energy ministers signed off on proposals to levy a “solidarity contribution” on fossil fuel producers that have benefited from soaring energy prices.

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Nord Stream attacks highlight vulnerability of undersea pipelines in west

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As Norway steps up seabed security, experts say underwater cables carrying world’s internet traffic are also at risk

Nato countries are scrambling to improve security of highly vulnerable undersea pipelines and communications cables after the apparent Nord Stream attack in the Baltic Sea underlines the west’s extreme vulnerability.

Four gas leaks on two Nord Stream pipelines have now been reported after blasts were detected on Monday. According to several reports citing European officials, Russian vessels were seen in the vicinity of the Nord Stream I and II pipelines where they were damaged, but an examination of the damage may not be possible for weeks for safety reasons, and no proof of Moscow’s involvement has been presented.

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Great British Energy: what is it, what would it do and how would it be funded?

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The details behind Keir Starmer’s proposed publicly owned energy company when Labour take power

The key pledge of Keir Starmer’s Labour conference speech was the proposed launch of Great British Energy, a publicly owned energy company to invest in clean UK power as part of the party’s commitment to “fight the Tories on economic growth”. But how does it work, and is it the same as renationalising energy?

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Keir Starmer promises to launch publicly-owned UK energy company as he hails ‘Labour moment’ – UK politics live

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Latest updates: the Labour party leader used his conference speech to spell out his plan for the UK

The decision to pay Liz Truss’s new chief of staff, Mark Fullbrook, through a private company has been dropped after criticism from within the Conservatives as well as from opposition parties.

The government admitted over the weekend that Fullbrook would be paid through his lobbying firm, a move that could have helped him avoid paying tax. He had previously claimed the firm had stopped all commercial activities.

The world we are heading for is a bumpy few weeks. The chancellor is now going to have quite a tough time because he has now set out plans to balance the books in November. That is going to be very hard.

Actually balancing the books in November is going to be harder than it would have been to show you are balancing the books last week because higher interest rates will make it harder to do. You might need £15bn worth of tough choices now that you didn’t need last Friday.

In the end, lower taxes will mean worse public services, or other people’s taxes having to go up, and it is those choices and ducking those choices that markets are looking at and saying that is not what serious policymaking looks like.

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Cost of using electric car charging point in UK up 42% since May

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Soaring energy prices after invasion of Ukraine have added almost £10 to cost of charging family-sized car, says RAC

The price of charging an electric car using a public rapid charger has jumped by almost £10 since May because of soaring energy costs after Russia’s invasion of Ukraine.

The increased price of wholesale gas and electricity has pushed up the price to charge an average family-size car by 42% to above £32, according to analysis by the RAC. That was £9.60 more than in May, and £13.59 more than a year earlier.

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Tory MPs angrily challenge Rees-Mogg’s fracking revival plan

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Energy secretary considers bypassing local planning rules as backbenchers voice opposition

Ministers face a furious backlash from Conservative MPs after overturning a manifesto pledge to pause fracking until it is proved safe, and then indicating drilling could be imposed without local support.

Outlining a return to shale gas extraction in England after three years, Jacob Rees-Mogg dismissed worries about earthquakes caused by the practice as “hysteria”, claiming this was often down to a lack of scientific understanding.

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Israel risks crossing Hezbollah ‘red line’ as it prepares to connect to disputed gas field

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The Karish maritime reservoir, part of which is claimed by Lebanon, is estimated to hold 2-3tn cubic feet of natural gas

Israel is preparing to connect a disputed Mediterranean gas field to its national gas network, a development helping the country cement its new role as a supplier to Europe at the risk of inflaming tensions with Lebanon’s Hezbollah.

The Israeli energy ministry said last week that it would conduct tests on the rig and natural transmission system in the Karish maritime reservoir, part of which is claimed by neighbouring Lebanon. The work is expected to begin on Tuesday, and London-listed company Energean, which has licensed the field, has said that it is “on track to deliver [the] first gas from the Karish development project within weeks.”

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Biggest interest rate rise for 25 years could spell showdown at the Bank

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This week’s decision could pit Bank of England governor Andrew Bailey against an expansionary PM and chancellor

A lightning strike from the Bank of England awaits. Having delayed its decision until after the period of national mourning for the death of the Queen, Threadneedle Street could this week launch the biggest rise in borrowing costs for at least 25 years.

Announcing its plans a day before Kwasi Kwarteng’s mini-budget on Friday, the central bank is widely expected to use a fast and forceful rate increase to show its commitment to tackling soaring borrowing costs – despite the gathering storm clouds for the British economy.

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Germany takes subsidiary of Russian oil giant Rosneft under state control

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Three refineries put into trusteeship ahead of partial European embargo on Russian oil later this year

Germany has taken the German subsidiary of the Russian oil giant Rosneft under state control, putting three refineries into a trusteeship ahead of a partial European embargo on Russian oil at the end of the year.

The federal network regulator will become the temporary trust manager of Rosneft Germany and its share of refineries in Schwedt, near Berlin, in Karlsruhe and in Vohburg, Bavaria, Germany’s ministry for economic affairs announced on Friday.

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Luis Vuitton reduces thermostat and light use in shops to save energy

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LVMH announced measures after Emmanuel Macron urged France to reduce power consumption

LVMH, the owner of Louis Vuitton, plans to lower the thermostat at its stores around the world as part energy-saving measures this winter.

The French conglomerate will also turn off the lights at its stores earlier, starting in France in October before being deployed worldwide.

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British firms warned of delay in energy bills support, reports say

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Businesses may have to wait until November, although package could still be activated next month

British businesses have been warned by government officials that they will have to wait longer than households for financial support with their energy bills amid delays in launching the £150bn scheme, according to reports.

Company bosses are increasingly worried about the prospect of delays to the arrival of support because fixed energy contracts come to an end in October for hundreds of thousands of firms.

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European gas prices likely to fall sharply this winter, says Goldman Sachs

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EU countries’ efforts to avoid big shortages likely to ‘successfully solve’ Russian cuts, says bank

European countries can withstand Russia’s gas cuts this winter as supply headaches may have been “successfully solved”, according to analysis by a leading US bank.

Goldman Sachs said the price of gas was likely to more than halve this winter as efforts by EU countries’ to avoid big shortages this winter prove effective.

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‘Nothing is decided’: EU energy ministers clash over price cap on Russian gas

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Countries that import large volumes fear Kremlin would respond by halting all gas flows, plunging them into recession

EU energy ministers have clashed over a plan to put a price cap on Russian gas, casting doubt on whether the measure will go ahead.

Speaking after emergency talks in Brussels in response to surging gas and electricity prices, the EU’s energy commissioner, Kadri Simson, said “nothing is decided” on proposals to curb Russia’s income.

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Energy ministers to gather to thrash out EU approach to gas and electricity price crisis

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Talks expected to be complex, with some member states strongly against proposed price cap on Russian gas

EU energy ministers will gather for emergency talks in Brussels on Friday to thrash out common measures in an effort to counter a gas and electricity price crisis that threatens to make energy bills unaffordable for households and businesses and tip Europe into recession.

The European Commission president, Ursula von der Leyen, has set out a five-point plan, which includes a price cap on Russian gas that is likely to draw strong opposition from some member states.

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Bank of England to lend UK energy companies as much as £40bn

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Bailout fund provided amid soaring market prices and fears of another wave of collapses

The Bank of England will lend UK energy companies as much as £40bn to deal with soaring market prices amid fears of another wave of energy company collapses.

Prime minister Liz Truss, on her third day in office, said she wanted to make sure energy companies have the cash they need to buy energy if prices jump. Reports this week said British Gas owner Centrica was in talks with banks to secure extra cash as Vladimir Putin continues to choke off Europe’s supply of gas.

A review of the UK’s energy regulation that promises to deliver “fundamental reforms to the structure and regulation”

An energy supply taskforce, led by Madelaine McTernan, who currently heads the government’s vaccines taskforce, that will seek to agree long-term contracts for energy supply at steady prices

A review of the UK’s 2050 net zero target to ensure it is “not placing undue burdens on businesses or consumers”

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Germany to extend energy subsidies to smaller firms amid closure fears

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Economy minister says ‘demand shock’ must be addressed, as economists raise fears of recession

Germany plans to extend a scheme subsidising energy costs for big businesses that are heavily dependent on energy to all small and medium-sized businesses, as part of a package of measures designed to avoid a wave of insolvencies.

Robert Habeck, the economy minister, said he anticipated that the subsidies would be in place for a limited time, until efforts on the national and European level to bring down high electricity and gas prices take effect.

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Cost of living crisis: what governments around the world are doing to help

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From cancelling student loan debt to raising minimum wage, different strategies aim to reduce effects of soaring prices

The Covid pandemic, soaring food and fuel prices, and Russia’s invasion of Ukraine have dealt a triple blow to people around the world. Here is a look at what governments are doing to try to help citizens and companies weather the cost of living crisis.

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Gas prices likely to hit new highs as Russia shuts pipeline indefinitely

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More UK manufacturers are cutting production or making job cuts as result of ‘out of control’ energy bills

Analysts are expecting gas prices to surge to record highs this week after Russia shut down a key pipeline to Europe.

At the same time, a growing number of UK manufacturers have said they are already cutting production or making job cuts as a direct result of “out of control” energy bills.

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EU must act now on ‘catastrophic’ energy price spike, says European Council chief

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Charles Michel says bloc must address price caps and has been too late in putting ‘concrete proposals on the table’

The EU must “make up for lost time” in finding urgent answers to an energy price spike that is a “catastrophe” for households and businesses, the head of the European Council, Charles Michel, has said.

Michel, who chairs EU leader summits, said the bloc needed to address the question of price caps, an idea backed by many EU member states.

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