EU tipped to avoid recession after gas crisis eases

Economic growth forecast to be 0.8% in 2023 but households still face cost of living pressures

The EU is predicted to narrowly avoid recession as a result of a milder-than-expected energy shock, although households face difficult times ahead as cost of living pressures ease only gradually, the European Commission has said.

Economic growth for the 27 countries of the EU is forecast to be 0.8% in 2023, compared with a 0.3% projection last autumn, when fears of winter power outages and the rising cost of living ran high. In the 20-country eurozone, the economy will expand by 0.9% in 2023, boosted by a better-than-expected performance in Germany and Italy, as well as relatively stronger growth in Spain.

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UK must quit climate-harming energy charter treaty, experts say

Secret international court system enables fossil fuel firms to sue governments for lost future profits

Experts have urged the UK to leave the controversial energy charter treaty (ECT), a secret court system that enables fossil fuel companies to sue governments for huge sums over policies that could affect future profits.

The European Commission said this week that remaining part of the treaty would “clearly undermine” climate targets and that an exit by EU countries appeared “inevitable”. Seven EU countries, including France, Germany, Spain and the Netherlands, have already said they will quit the ECT.

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Greenpeace threatens legal action over UK failure to meet fuel poverty targets

Government plans to upgrade energy efficiency of homes will help only 5.8% of fuel poor households by 2030, campaign group claims

Greenpeace is threatening to take legal action against the government as it emerged a target to lift millions of struggling households out of fuel poverty is likely to be missed.

Government plans to upgrade the energy efficiency of homes will help fewer than 6% of fuel poor households by 2030, according to the environmental campaign group.

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Britain’s biggest gas supplier accused of ‘profiteering’ from energy crisis

Climate campaigners hit out at Norwegian state-owned Equinor’s record £62bn profits as household bills rise

Britain’s biggest gas supplier, the Norwegian state-owned oil company Equinor, has been accused of “profiteering” from the energy crisis and higher household bills after posting record annual earnings of £62bn.

The oil and gas producer said on Wednesday that adjusted profits hit $15.1bn (£12.5bn) in the final three months of last year, bringing total annual profits to $74.9bn, the highest in its 51-year history.

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Rishi Sunak reshuffle: ‘red wall’ MP Lee Anderson named deputy Tory chair – live updates

Controversial MP appointed as Greg Hands’ deputy; Michelle Donelan becomes minister for science, innovation and technology

This is from TalkTV’s Kate McCann.

“Next hour or so …” We’ll see. Reshuffles often take longer than expected, because all it takes is one minister to say no, or ask for time to think, and then the whole process gets clogged up. There is already some evidence that this one is not going to be quite as quick as originally expected. (See 8.30am.)

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Billionaire investor Křetínský and trader Vitol eye fortune in British power plant subsidies

Exclusive: Looming auction to earmark £1.5bn to put power generators on standby and keep the lights on

The billionaire West Ham United investor Daniel Křetínský and Swiss commodities giant Vitol are among bidders hoping to land hundreds of millions of pounds in subsidies to keep the lights on in Great Britain.

National Grid’s electricity system operator is preparing to announce successful bidders in a “capacity market” auction this month for 2026.

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World’s biggest investment fund warns directors to tackle climate crisis or face sack

Norway’s sovereign wealth titan threatens to vote against boards on firms it holds investments with over lax climate and social targets

Norway’s sovereign wealth fund, the world’s single largest investor, has warned company directors it will vote against their re-election to the board if they don’t up their game on tackling the climate crisis, human rights abuses and boardroom diversity.

Carine Smith Ihenacho, chief governance and compliance officer of Norges Bank Investment Management, which manages more than 13tn Norwegian kroner (£1tn) on behalf of the Norwegian people, said the fund was preparing to vote against the re-election of at least 80 company boards for failing to set or hit environmental or social targets.

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Labour renews call for ‘proper’ windfall tax as Shell declares record £32.2bn profit – UK politics live

As it happened: Prime minister speaks in interview on TalkTV to mark his 100th day in office

On the subject of Rishi Sunak reaching his 100th day in office, my colleague Jessica Elgot has a great assessment of how it’s going. Here is an extract.

After Liz Truss left office, polls suggested that voters wanted to keep an open mind about Sunak and rated him significantly higher than his party.

That is now beginning to turn. According to senior Labour figures, their most recent focus groups, with swing voters in Southampton, Dewsbury and Bury last week, were described as being “utterly brutal for Sunak”, with participants engaging in “open mockery” of the prime minister. Even the most pessimistic members of Keir Starmer’s team say they have seen a decisive shift.

In the coming weeks, our new stop the boats bill will change the law to send a message loud and clear.

If you come here illegally, you will be detained and removed.

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Calls for bigger windfall tax after Shell makes ‘obscene’ $40bn profit

Sunak government under pressure after gas prices fuel ‘outrageous’ doubling of profits at Anglo-Dutch group

The government is under pressure to rethink its windfall tax on energy companies after Shell reported one of the largest profits in UK corporate history, with the surge in energy prices sparked by Russia’s invasion of Ukraine pushing the oil company’s annual takings to $40bn (£32bn).

Opposition parties and trade unions described Shell’s bonanza, the biggest in its 115 year history, as “outrageous” and accused Rishi Sunak of letting fossil fuel companies “off the hook”.

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EU plans to loosen state aid rules to boost renewables investment

Proposed use of tax credits follows pressure to respond to Biden’s $369bn green subsidy scheme in US

The EU is stepping up its green subsidy race with the US through plans to loosen state aid rules on tax credits for renewable energy projects.

European policymakers have been under pressure to respond to the US president Joe Biden’s $369bn (£298bn) Inflation Reduction Act, which aims to encourage renewables investment in everything from electric cars to wind turbines.

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Coal power stations warmed up for third time this week as UK cold snap persists

National Grid put Drax and EDF’s West Burton generator on standby, with the latter stood down at 5am

National Grid asked coal-fired power stations to warm up on Thursday for the third time this week in case they are needed as cold weather across the UK continues.

Two units at Drax in Yorkshire and one at West Burton in Nottinghamshire were asked to fire up just before midnight on Wednesday. The West Burton unit was stood down at 5:13am, but the Drax units have continued to heat up, according to notifications sent to the industry.

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Minister unable to say whether Zahawi was telling truth when he first said taxes were fully paid – as it happened

Labour MP asks whether Zahawi statement in the summer was untrue, with Cabinet Office minister saying he does not know the answer

Nadhim Zahawi, the Conservative party chair, has welcomed the decision by Rishi Sunak to ask the No 10 ethics adviser to investigate his case. “I am confident I acted properly throughout,” Zahawi said.

Zahawi seems to be using a narrow definition of “properly”. In the statement he issued yesterday, he accepted that his original decision not to pay the tax that HM Revenue and Customs subsequently concluded he should have paid was down to a careless error. He said:

Following discussions with HMRC, they agreed that my father was entitled to founder shares in YouGov, though they disagreed about the exact allocation. They concluded that this was a ‘careless and not deliberate’ error.

Integrity and accountability is really important to me and clearly in this case there are questions that need answering …

That’s why the independent adviser has been asked to fully investigate this matter and provide advice to me on Nadhim Zahawi’s compliance with the ministerial code, and on the basis of that we’ll decide on the appropriate next steps.

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Energy suppliers to be investigated over Britons forced on to prepayment meters

Ofgem could look to take legal action if companies are not taking proper care of vulnerable households

Energy companies are to be investigated by the regulator Ofgem after the number of households struggling with their bills being forced on to prepayment meters has increased sharply.

Ofgem could consider taking legal action if it determines that the rise in the number of homes being forced on to prepayment meters is proven to show companies are not taking proper due care of vulnerable households.

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How will drop in inflation affect plans to raise UK interest rates?

Bank of England must proceed with caution as households are still cutting back and business confidence is weak

There is hope for households across Britain that inflation, finally, has peaked. After hitting a 41-year high of more than 11% in October as energy bills soared, the fall in the annual inflation rate in December for a second consecutive month will come as a relief.

However, prices remain high and are still rising fast. Lower inflation rates do not mean prices are falling for consumers; it is just that they are not rising quite as fast as a month ago. The cost of living crisis may be fading but it is very far from over.

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Energy bills: calls for ‘social tariff’ when UK government support ends

Charities and non-profit bodies urge Jeremy Hunt to introduce discount tariff from April 2024

Jeremy Hunt is facing calls for a “social energy tariff” providing cheaper gas and electricity for low income households to be introduced when government support ends next year.

In an open letter to the chancellor, 95 charities and non-profit organisations have urged the government to move quickly to legislate for a change in energy bills for “those in greatest need to ensure they are able to live in their homes comfortably”.

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Ramaphosa cancels Davos trip amid South Africa energy crisis

Africa’s most industrialised economy being hit by daily power cuts as anger grows among opposition and public

Cyril Ramaphosa has cancelled his trip to the World Economic Forum in Switzerland as South Africa grapples with an unprecedented energy crisis that has resulted in daily power cuts of between eight and 11 hours across the country.

Anger is growing as offices, hospitals, factories and tens of thousands of small businesses are forced to close, with outages also causing increased crime, traffic disruption and massive wastage as food supply chains collapse.

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Higher UK energy bills here to stay, warns oil company boss

Equinor chief says bills won’t return to levels seen before Ukraine invasion given windfall taxes and move to greener energy

The boss of one of Europe’s biggest energy companies has warned that higher gas and electricity prices are here to stay and consumers should not expect them to return to levels seen before Russia’s invasion of Ukraine.

Anders Opedal, the chief executive of Norway’s state oil company Equinor, said factors including windfall taxes and the large sums energy firms must invest to move from fossil fuels to greener alternatives mean bills are likely to remain elevated.

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Hopes of sharp fall in household energy bills as HSBC cuts gas price forecast

Bank slashes predicted 2023 European wholesale price by 30% as mild weather reduces demand

HSBC has slashed its forecasts for future wholesale gas prices in response to mild weather in Europe – raising hopes of a sharp decline in household energy bills.

The bank cut its 2023 forecasts for the price of gas traded in Europe by about 30% and its forecast for 2024 by 20%.

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UK coal-burning power plant to stay open two years longer than planned

Ratcliffe-on-Soar to be kept viable until late 2024 after ministers make request prompted by energy crisis

A Nottinghamshire coal-burning power plant will stay open for two years beyond its planned closure date after a call from ministers prompted by the UK’s energy crisis.

Ratcliffe-on-Soar had initially been pencilled in to shut in 2022, but last year said it would have an initial extension until 31 March 2023.

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Call to end forced installation of UK prepayment meters after millions suffer without power

Report shows 3.2m people disconnected last year as they ran out of credit

Ministers are being urged to stop the forced installation of prepayment meters after revelations that 3.2 million people – the equivalent of one person every 10 seconds – were left with cold and dark homes last year as they ran out of credit.

As energy prices surged this winter, suppliers have stepped up the use of court warrants to force their way into homes to install prepayment meters, with some magistrates approving hundreds of applications at a time. For homes with smart meters, the change can be made remotely without even needing a warrant.

Rhiannon, a single parent with a baby who suffers from depression, fell behind on her payments after she separated with her partner. Her landlord allowed her supplier access to fit a prepayment meter. She has resorted to warming baby milk at her GP’s surgery and staying warm in her dad’s car.

Rona uses a wheelchair and lives with her daughter who has special educational needs. She is reliant on family to go to the Post Office to top up and was left without heating, lighting or means to make food over Christmas.

Alice, a woman with a lung condition who was moved on to a prepayment meter due to debt and couldn’t afford to top up. Her supplier told her she could not be helped again because she had been helped before, but being cut off prevents her charging her breathing machine.

Andy, a diabetic who was moved on to a prepayment meter and left without power for a week despite needing to keep his insulin in the fridge.

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