Energy and Ed

Energy and Ed

Ed Miliband introduced the Economy debate, speaking on his shadow portfolio, Energy. This was an excellent speech, it made me sad we couldn’t get him in, it reminded me of what we may have lost. ( video | text ). He called for a windfall tax, and the adoption of renewables. He claimed, now, “It’s cheaper to save the planet than destroy it”.

The speech listed a list of opportunities, detailed Labour’s opposition to fracking and called out the appointment of Jacob Ress Mogg, a climate change denier as Business Secretary. …

Energy Prices

Energy Prices

There is a consensus that Energy profiteering is at the centre of the OECD’s inflation crisis. This is exacerbated in the UK due to privatisation and asset stripping of the gas and water companies. Brexit hasn’t helped. This article reviews a number of policy options from left and right. For more, use the 'read more' button ...

GMB & the Energy Industry

GMB & the Energy Industry

In terms of developing public policy, one of the most important debates at GMB Congress is the Energy Industry debate.

This, like all the others is on Youtube and focus on two composite motions, one calling for continued investment in Sizewell C and the nuclear industry as the only reliable zero-carbon generator source, and the other calling on an acceleration of the use and creation of Hydrogen. The latter motion makes the point that with Tories globalisation strategy, capability and jobs in the renewable sector are often offshored. It does not call for the reopening of the gas storage facilities closedby the privatised gas industry which it should because electricity cannot be stored at scale, gas can be if you have the storage capacity. Much of what it says in the Gas motion would make more sense in the context of a nationalisation or at least a mandatory national plan. The motions calling for nationalisation were marked existing policy and so not scheduled for debate.

The CEC qualified its support on three of the motions stating that it could not support words that suggested discrimination against migrants, (hooray), could not support policies in breach of the WTO trade rules, although would campaign/lobby to change them and that it considered OFGEM to be a flawed institution and asking for anything from them would be a waste of time and effort.

Earlier in the day, two motions (140 & 141) were debated. M140 calls for an integrated approach to tax and subsidy on generation and transport for low-carbon energy. It was compellingly moved by Adrian Stohr with a brave statement about the limits of incremental change today’s energy infrastructure. M141 calls for a renewables development authority and an economic plan to reduce carbon in steel manufacture. Again, it mentions the import of goods, and the export of jobs and tax spend. …

Gas Prices

The Economist reports  that spot gas prices have fallen but that UK energy prices cannot because the energy companies have already agreed a price; this is known as a forward rate agreement.

Someone is making a shit load of money here because there is a secondary market consisting of options and CFDs. So either the Gas providers or the derivative market makers are making a lot of money beyond the excessive profits of the energy companies. The use of FRAs is, it would seem, is a poor decision. Maybe if OFGEM didn’t nod through the price increases requested by, the so-called energy companies, most are commercial billing entities, they would be more careful.

I recommend you look at the article as it has a chart, and references a further articles on the UK Energy Market and the broken gas market.  …