Energy

To save the High Street, sack Mary Portas and slash business rates

On my way to chair a town meeting, I was chuckling over Phillip Warner’s cartoon last week headed ‘Mary Portas reinvigorates the High Street’. First, TV’s sharp-tongued queen of retail holds forth in front of a row of abandoned shops; then townsfolk dance in the street at the news that she has ‘buggered off in a taxi’. Call me an old cynic, but I think turning stars into tsars is a sign of Downing Street desperation: witness Alan Sugar’s lame stint as ‘enterprise champion’ in the dying days of Gordon Brown, and wince at James Caan from Dragon’s Den tackling social mobility. What I heard from the people of my

The View from 22 — Britain’s shale gas dilemma, the ruling elite and the Queen’s Speech

Will Britain’s lack of enthusiasm for shale gas result in a collapse of the government’s whole energy policy? In this week’s Spectator cover feature, Peter Lilley writes we will soon cross this shale rubicon. The former shadow chancellor and advisor to David Cameron vigorously argues that fracking can no longer be ignored in order to make the country’s energy ends meet. On the latest View from 22 podcast, Fraser Nelson discusses Lilley’s theory with Matthew Sinclair of the Taxpayers’ Alliance and the likelihood of another Downing Street u-turn. Will Cameron radically shift the government’s energy policy in an attempt to reduce consumer prices? And can the green lobby be successfully

Britain can’t afford to surrender to the greens on shale gas

The scandal of official reluctance to develop Britain’s shale gas potential is at last beginning to surface. It may prove to be the dress rehearsal for the ultimate drama — the inexorable collapse of our whole energy strategy. Most of us have by now heard about the US shale gas revolution. In little more than six years, shale gas has reduced America’s gas prices to a third of what they are in Europe, increased huge tax revenues, rebalanced the economy, created tens of thousands of jobs, brought industry and manufacturing back to the country’s heartlands, and given rise to a real prospect of American energy self-sufficiency by 2030. Britain may

The View from 22 special — Fuel Wars: how to get the best deal for the consumers

In association in Centrica How can consumers ensure they are receiving the best possible deal for their energy bills? In this special View from 22 podcast, the Spectator’s political editor James Forsyth discusses issues within in the energy market and some potential solutions for getting the lowest possible energy bills. Is shale gas the answer? Do green subsidies need to be cut? And is the government doing enough to help the consumer? Joining the panel are the Rt Hon Peter Lilley MP, Conservative MP for Hitchin and Harpenden and member of the Select Committee on Climate Change, Peter Moorey, Principal Advocate for Which? Consumer Review services and Ian Peters, the

Mini reshuffle shows Cameron trying to get a grip

The mini reshuffle earlier this morning is significant. David Cameron has moved Tory ‘greybeards’ to address problem areas. Cameron’s twitter feed has announced: ‘Delighted John Hayes joining me as a Senior Parliamentary adviser – and Michael Fallon adding a key energy role to his brief.’ Benedict Brogan and Tim Montgomerie have good analyses of what this means. In summary it appears that Hayes, a self-confessed ‘blue collar’ Tory and popular MP, is going briefless to the Cabinet Office to help the PM communicate government policy to the backbenches and the working classes. Hayes speaks in plain language. He has been pushing the energy bill through parliament, and has clashed openly

In Cyprus as in Britain, the prudent must pay for others’ folly – but not like this

The Cypriots are the authors of their own misfortune, having turned their banking system into a rackety offshore haven for Russian loot and lent most of the proceeds to Greece. But it was madness on the part of bailout negotiators to shake confidence in banks across the eurozone by trying to impose a levy on deposits held by even the smallest Cypriot savers, in what was presumably an attempt to cream off a layer of ill-gotten foreign cash. And even if the proposal has been radically watered down by the end of the week, we now know the European powers-that-be are prepared to pull this device out of their toolbox

The quiet global energy revolution

In all the noise of tomorrow’s Budget, many may not spot a small tweak to the fiscal regime for UK oil and gas. Those of us with a close interest in unconventional oil and gas, however, will be watching closely. Last year the Chancellor announced a consultation on a specific tax regime for onshore shale gas development, the results of which are expected on Wednesday. Press coverage of shale gas is often characterised by myth and hyperbole. For some, it’s the last gasp for fossil fuels; for others, a new source of energy security and the key to bringing down bills for industry and consumers. We are not used to

The UK needs a serious debate on shale gas

Arguments over the potential development of UK shale gas resources are too often characterised by rhetoric and hyperbole on both sides. Some of the wilder claims need to be challenged and we need to separate the facts from the ill-informed speculation. That is why I am one of a cross-party group of MPs and Peers who have come together to set up the new APPG. Members include MPs who are in favour of developing a domestic shale gas industry, MPs who are opposed, and MPs who simply want to better understand the truth. The intention is to cut through the rhetoric and get to the facts. Much of the excitement

Grey launch day for Green Deal

The Tories in opposition were very keen on their ‘Green Deal’ for making existing housing stock energy efficient. It formed the cornerstone of their pledge when the Coalition formed to be the ‘greenest government ever’. It had its big full launch today, with new loans available for homeowners to insulate their properties and pay back the money through their energy bills. The only problem is that the Green Deal isn’t quite the big all-singing all-dancing deal the government envisaged. The idea was that big businesses would lead the way in providing the scheme, but one of the leading retailers who expressed initial interest in the scheme, Marks and Spencer, isn’t

No Country for Green Men – Spectator Blogs

This week’s Think Scotland column takes a gander, just for once, at the Scottish Green party. Patrick Harvie’s party is in favour of Scottish independence for reasons that, frankly, seem pretty damn unconvincing. I suspect that the Greens, like those parts of the far-left that also favour independence, are liable to be desperately disappointed by life in an independent Scotland and that they will come to realise that it is not much better than their present miserable existence within the United Kingdom. Harvie, of course, rejects the label “nationalist”. He is, he insists, no such thing and you don’t need to be a nationalist to favour independence. Well, maybe not.

Osborne to back fracking and 30 new gas power stations

Coalition tensions over energy won’t relax with George Osborne’s gas strategy, which he will launch alongside the Autumn Statement tomorrow. The Financial Times reports that the Chancellor’s strategy will approve as many as 30 gas-fired power stations and – in a move that will delight those in his own party – a regulatory regime for shale gas exploitation. Fraser extolled the virtues of shale gas in his Telegraph column in September, describing it as ‘the greatest single opportunity’ facing the government, with the potential to transform energy supply. But Energy Secretary Ed Davey is less enthusiastic, arguing in May that Tory support for shale gas exploitation – known as fracking

The politics of energy

When David Cameron made his surprise announcement about forcing energy companies to offer customers their cheapest deal, he added, as an afterthought, that the leader of the opposition had missed the chance to be on the side of the consumer when he was energy secretary. I would be surprised if the average voter knows that Miliband was energy secretary; but, from Cameron’s perspective, the line of attack makes sense: energy prices and the cost of living are vital political issues for this government. The government, then, will be thrilled that Energy Secretary Ed Davey’s plans (which appear to be based largely on Ofgem’s recent ideas about simplifying tariffs: Davey will

The energy sector’s Libor-style scandal

As David reported earlier, today’s Guardian carries allegations of price-fixing in the energy markets. The paper has an account by Seth Freedman, who worked as a price reporter at ICIS Heren, detailing how he observed suspicious trades that looked like attempts to manipulate the daily index price. Based on Freedman’s account, the alleged manipulation looks very much like that employed by City traders in the recently-exposed Libor scandal. Ironic, then, that the ‘suspicious’ trades Freedman observed came on the same day as Martin Wheatley published his review of Libor for the Treasury: Friday 28 September. Even after bankers had resigned and as new regulations for that sector were being planned,

Tuition fees push inflation back up to 2.7%

After falling to 2.2 per cent in September, inflation — as measured by the Consumer Prices Index — rose to 2.7 per cent in October. On the Retail Prices Index, inflation rose from 2.6 per cent to 3.2 per cent. The main cause of the rise is the government’s changes to university tuition fees, which put the maximum annual fee up to £9,000. Today’s figures are the first to include the effects of the policy — with the education index 19.7 per cent higher than last year. But food prices were up too — by 0.5 per cent on last month and 3.3 per cent on last year. The good

Government responds well to energy price fixing claims

It is a busy day on the economic front, with new inflation figures (which are expected to show an increase) to be released at 9.30am and Ed Davey, the energy secretary, to address the House about further allegations (published in the Guardian this time) that the wholesale price of gas has been fixed by traders. The claims were made by a whistleblower, Seth Freedman, who used to work at ICIS Heren, an agency that reports on gas prices. The Financial Services Authority and the energy regulator, Ofgem, have both swung into action to investigate Freedman’s allegations. It is only natural that the government would state its response to the House and

Politicians shouldn’t meddle with energy prices

David Cameron’s announcement in the House of Commons on Wednesday – that he would force energy companies to give people the lowest tariff – caused a stir. The Downing Street comms machine has been trying to clarify the new policy ever since and we’re only just starting to see a clear idea taking shape. So what are we to make of it? Well, there is almost no competition in the energy market. There are only six big companies, and those are regulated within an inch of their lives. So with no proper competition, you could make the case that government has a role to make sure that customers are properly

Energy bills row: Cameron clarifies his surprise announcement

David Cameron has arrived in Brussels for a meeting of the European Council, and has offered further helpful clarification of what exactly he means to do about energy bills. The Prime Minister said: ‘I want to be on the side of hard-pressed, hard-working families who often struggle to pay energy bills. That’s what I said in the House of Commons yesterday. We’re going to use the forthcoming legislation, the energy bill, coming up this year so that we make sure, we ensure that customers get the lowest tariffs. That’s what we’re going to do.’ This is still different to what the Prime Minister said in the Commons yesterday. Privately, the

Isabel Hardman

How David Cameron fluffed a key cost of living announcement on energy

The Conservatives are worried that voters are deserting them over the rising cost of living, yet their leader has managed to fluff an announcement designed to remedy that problem. Yesterday at Prime Minister’s Questions, David Cameron surprised the whole chamber and the department concerned by announcing a brand new energy policy. In response to a question from Labour’s Chris Williamson about what the government was doing to help people reduce their energy bills, Cameron said: ‘We have encouraged people to switch, which is one of the best ways to get energy bills down. I can announce, which I am sure the honourable gentleman will welcome, that we will be legislating

Lib Dem conference: Ed Davey says he’s ‘not for turning’ on a green future

Though it was never going to make the earth move, Ed Davey’s speech to the Liberal Democrat conference highlighted the party’s push for differentiation on the green agenda. The Energy and Climate Change Secretary was clear that installing Owen Paterson, as the new Environment Secretary, would not stop the Lib Dems fighting for a green future and a green economy. ‘Our Coalition agreement to clear up Britain’s mess, wasn’t an agreement to turn the clock back. For business as usual. To rekindle Thatcherism – or Blair-Brown. It was for a fairer, greener Britain – and we must fight for that. Earlier today, I moved the motion to pledge this party’s

Alex Salmond’s wind farm delusion

Last year, in an interview with the Today programme, the chief executive of National Grid told the show’s no doubt stunned listeners that they would have to get used to not having electricity as and when they wanted it. That here in the developed world we should be wondering whether the lights will be going out in a few years time, whether our children will go to bed in the cold or whether we will spend our evenings shivering around log fires is rather amazing. That our political leaders have achieved this — if achieved is the right word — in the face of the shale gas revolution with its