Tag: Energy

Next Please

There’s no celebration. No fanfare. Today, the UK get a new PM. The 4th in 6-years. We have seen Cameron, May, come and go. Now Johnson is going in favour of Truss. If there’s a celebration, it’s that Johnson is going out of Number 10 Downing Street. The removal van is, no doubt, fully laden.

This is a transition that needs to be made as quickly as possible. For too long the Johnson cabal has been lingering and doing little of any use to the nation. However, the jobs are distributed it’s a time when decisions must be made fast, but with a degree of smart flexibility.

Truss has none of Johnson’s ability to bluff and shtick. The new PM has a delivery that’s wooden and gaff prone. Nevertheless, Tuss has beaten others who would dearly love to be in the hot seat. Although, there’s good reason to question why anyone sane would want to be PM in September 2022, given the vast size of the in-tray that is waiting.

Smaller taxes and smaller Government may have been Truss’s shop window to Tory members but that’s not what’s necessary to dig the country out of the doldrums. This is a time for intervention. We have markets that are actively working against the interests of the British people.

Denying the aftereffects of Brexit also needs to go in the dustbin. It’s only by recognising a problem that a better path can be taken.

The last thing we need is a laissez-faire leadership. The textbooks of the Reagan era do not contain the solutions to the problems of the 2020s. Immediate changes to the energy market are needed. Regulation is a major part of those changes. Not micromanagement but structural change. The accumulation of huge profits because of our peculiar regulatory structure can’t continue.

On this momentous day, change must happen. However, as a word of caution, that transformation must not disregard the real and urgent nature of climate change. If our hot summer wasn’t an indicator sufficient to catch the attention of the new PM, and whoever is appointed as energy secretary, then look at what’s happening in Pakistan[1].

Winter is coming. Short-term measures must prepare us for winter, but the long-term perspective is vital. Not only do we need to decarbonise but reducing demand for energy for heating is achievable. For too long the benefits of improving Britain’s housing stock have been neglected. We don’t need more spiel and the hands-off approach should be for the dustbin.

[1] https://www.msn.com/en-gb/news/world/pakistan-floods-more-than-450-children-killed-in-e2-80-98horror-show-e2-80-99-with-death-toll-feared-to-rise-further/ar-AA11uXnL

Sun & Wind

My morning routine includes switching on the radio. That already marks me down as being of a certain age. News and current affairs isn’t always a cheerful way to start the day but, at least, as a result I feel a bit better informed about the world and its ways.

Listening to Vince Cable[1], at the end of the BBC’s Today programme this morning[2] I agree. [At run time 2:37]. Sir John Vincent Cable, yes that makes me even more inclined to listen to him, has a wealth of knowledge and experience and puts his case well.

Yes, we have had four major shocks to the British economy. The banking crisis, Brexit, COVID pandemic, and war in Europe. Amongst these Brexit was self-inflicted and has cost the UK a great deal. To lump on top of all that we have had incompetence in Government the like of which hasn’t been seen for decades.

The blatant idiocy of suggesting that the answer is fracking to produce more gas and more exploratory drilling is needed are the ultimate in short-term planning. The UK is not the US. Believe it or not, there is a global climate crisis and burning more fossil fuels makes it worse. Short-term planning is one of the reasons that the UK economy is underperforming. Proposing more of that approach is to further embed reckless incompetence.

Vince is right. We should make it easier to build onshore wind turbines in the UK. I’m not saying completely deregulate the planning systems. That would be entirely foolish. However, in local development plans we have ridiculous absurdities that name wind turbines and solar farms as a particular danger to the character of the landscape. So, any proposal that is brave enough to come forward gets slapped down immediately. Local politicians run for the hills.

Like all such regulatory issues, there needs to be a balance struck. There are numerous places in the UK were wind turbines and solar farms have a great deal more positive impact than negative. Proposals for renewable energy developments should be given a leg up. The UK is blessed with renewable energy assets in wind, seas, rain, and enough sun to make a difference.

I am first in-line to defend the beauty of our countryside but not everywhere is equal in that respect. Not only that but compared to nuclear power stations of any size, wind turbines and solar farms can be removed after a life of service with little sign of their former presence.

[1] https://en.wikipedia.org/wiki/Vince_Cable

[2] https://www.bbc.co.uk/sounds/play/m001bbsv

Energy cap

The letters “Of” have been used as shorthand for “Office of” in the names of several regulators in the UK. There are at least two of them that are gaining an unparalleled reputation for incompetence[1]. Maybe, I’m being unfair. Afterall, a regulator can only do what the legislation that created it will permit it to do. They are not lawmakers. They can only interpret the law in respect of their own responsibilities. That law, however amended, is relatively stationary in the face of events.

One way of explaining what has happened is to admit that the ethos and rules in place were devised to serve past times. In the world of services provided by industry, the environment has changed dramatically, in more ways than one. A cacophony of events, Brexit, recuring political ineptitude, war, and climate change have made the framework created for British regulation obsolete.

It’s like trying to use a Thatcher / Blair era computer in the world of today’s internet and mobiles.

Now, what’s clear is that we have a bunch of Ministers who haven’t a clue what to do when faced with this problem. Conservatives keep a picture of Sid[2] on their bedroom walls.

The call has come from the Greens to nationalise everything[3]. This too is an inept solution to current problems. This was the dogma that Labour once held dear. How the political landscape changes.

Despite the calamities befalling us, we must get off fossil fuels. Again, Conservative politicians are on the wrong page. Britons needs encouragement to switch and insulate[4] not to stoop to fossil fuels industry lobbyists. The notion that the solution to a painful recession is to burn the future is absurd.

Let’s get out of the rut. Defending, and being constrained by a framework of organisation that’s out of date is no use to anyone. That is why the Liberal Democrat proposal to freeze the energy price cap is a good start. We desperately need to buy time, with escalating inflation, to come up with a new regulatory scheme. One that works for customers. One that works for the environment. One that works for you and me.

[1] Ofgem – the Office of the Gas and Electricity Markets and Ofwat – the Water Services Regulation Authority

[2] To encourage individuals to become shareholders, the gas privatisation offer was advertised with the “If you see Sid…Tell him!” campaign.

[3] https://www.bbc.co.uk/news/uk-politics-62577830

[4] Home insulation has been slashed by the current Government