The prime minister has confirmed she is launching new North Sea oil and gas licensing to drive home-grown energy in the UK and tackle the winter crisis.
In a series of tweets posted today, Liz Truss said: “To secure our long-term energy supply and reduce reliance on authoritarian regimes, we’re accelerating our domestic energy production, including launching a new North Sea oil and gas licensing round.
“We’re also speeding up deployment of renewables including hydrogen, solar and wind.”
This morning, the climate minister said the government will not tell people to reduce energy usage because it is “not a nanny-state” but will not rule out rationing.
It comes as British households face rolling three-hour long blackouts if gas imports fall short of demand this winter, National Grid has warned.
Russia’s war has created “unprecedented turmoil and volatility” in energy markets, the company said on Thursday, adding that pre-planned power cuts may be necessary to give power plants priority.
CEO of energy company criticises climate minister
The climate minister’s comments that the government will not tell the public to reduce their energy usage are “highly irresponsible and hazardous”.
“If our own climate minister can’t see the importance of helping homes to cut energy wastage – a move that would speed up the country’s journey towards net-zero by two years – we are doomed,” CEO of Utilita Energy, Bill Bullen, said
The government has also drawn criticism for beginning a licensing round for new oil and gas exploration in the North Sea.
But the prime minister argued increasing UK production across fossil fuels, nuclear and renewables is needed to avoid future energy crises.
Ed Miliband says public information campaign is ‘entirely sensible’
On the government’s refusal to produce an energy-saving public information campaign, Ed Miliband said: “It is entirely sensible to give the public factual information about how they can save money on energy bills.
The Labour shadow climate change secretary said: “Blocking it because of ideological dogma is another failure piled on 12 years of Tory failed energy policy for which the British people are paying the price.”
‘Everyone stands to lose’ if Europe does not tackle rise in energy prices- Taoiseach
The Taoiseach has said “everyone stands to lose” if Europe does not tackle the “exponential” rise in energy prices.
Micheal Martin said European countries need to adopt a Covid-style approach to address the energy crisis.
The Fianna Fail leader added there is no “magical” answer to the problem.
Speaking in Prague, Mr Martin said: “Unity is again important, similar to what happened with Covid-19. The European Commission [and] the European Union came together and had a co-ordinated set of policies for public health and vaccination.
“Likewise in this crisis, efforts are continuing to be made to see if we can get a European-wide response to the energy crisis issue.
“It’s not simple. Different member states are coming to this from different positions.
“We all want to arrive at the same destination: to try and limit the exponential growth in prices but also making sure security of supply.”
Mr Martin was attending a summit of EU leaders in Prague on Friday.
Asked about the measures introduced by Germany, Mr Martin said there is a general view that there should be “more co-operative or collective approach and every member state including Germany were on for that”.
Liz Truss blocks energy saving campaign ‘on ideological grounds’
Liz Truss has blocked plans for a public information campaign asking people to save energy over the winter, reportedly because she is “ideologically opposed” to the idea.
Ministers on Friday morning claimed the idea was “nanny state” and confirmed that they would not be urging people to keep an eye on their usage despite warnings from National Grid of possibly rolling blackouts.
Business secretary Jacob Rees-Mogg is said to have been keen on a £15 million campaign as a relatively cost-effective way of reducing the UK’s energy usage at a time of surging prices and scarcity.
Our policy correspondent Jon Stone has more:
Liz Truss blocks energy saving campaign ‘on ideological grounds’
Minister says government views public information campaign as ‘nanny state’
Insolvencies rise as companies worry about energy bills- part two
A survey by the statisticians found that 23% of businesses said that energy prices are their main concern in early October. This compared to 15% in February when bills had already been rising.
The survey also found that businesses with between 10 and 49 employees were the most worried about energy. Around 27% said that this was their primary concern.
“The price of energy is likely to remain a key concern for businesses, especially during winter months when energy usage for many businesses increases,” the ONS said.
Two weeks ago the Government announced a new programme to help businesses with their energy costs.
Under it, businesses will get some of their runaway energy costs covered by the Government.
Although it did not draw a direct link between bills and insolvencies, the ONS showed that the accommodation and food service sector saw unusually high levels of both.
Nearly 41% of respondents from the sector said that energy was their biggest worry, and 611 insolvencies were recorded in the second quarter – the highest since records began in 2012.
Truss says she will get country through winter by increasing energy production in the UK
Prime minister Liz Truss said tackling the energy crisis required increased production in the UK as she attempted to reassure the public the country “will get through this winter”.
In a string of tweets on Friday, she said: “We have taken decisive action to support households and businesses with their energy costs – and we’re working to make sure the United Kingdom is never in this position again by tackling the root cause of the energy crisis.
“That means producing more energy here at home.
“To secure our long-term energy supply and reduce reliance on authoritarian regimes, we’re accelerating our domestic energy production, including launching a new North Sea oil and gas licensing round.
“We’re also speeding up deployment of renewables including hydrogen, solar and wind.
“Yesterday I held discussions with our allies on progressing Sizewell C and building more nuclear power stations.
“We’re also working to get better prices for people now – our energy supply taskforce is negotiating new long-term agreements with gas suppliers.
“Together, we will get through this winter, grow our economy and secure our energy independence for the future.”
Insolvencies rise as companies worry about energy bills- part one
Nearly a quarter of small businesses say that energy prices are their main concerns as insolvencies spiked to their highest level since the wake of the financial crisis.
The number of companies going insolvent in England and Wales has been rising since last year, and hit 5,629 in the second quarter of 2022.
When adjusting for the season, this pushed insolvencies to their highest level since the third quarter of 2009, amid the global financial crisis.
The rise has come after businesses were protected from insolvencies during the pandemic due to Government rule changes.
These rules were only temporary and were later reversed, paving the way for many collapses in the wake of the crisis.
Now businesses are facing a whole new set of challenges as their costs rise and under-pressure shoppers cut back their spending.
“Several factors are likely to have played a role in the recent rise in insolvencies, such as persistently high energy prices, difficulties in meeting debt obligations, rising costs of raw materials, and supply chain disruptions,” the Office for National Statistics (ONS) said on Friday.
Lack of energy-saving campaign is ‘another example of government failings’- Friends of the Earth
Responding to news that the government is not telling people to reduce overall energy consumption, Friends of the Earth’s head of policy, Mike Childs, said: “The government could easily provide people with simple advice on how to cut energy use, for example by adjusting boiler controls, which would both help improve energy security and help cut harmful carbon emissions.
“Not helping people understand how to reduce energy use is another example of government failings on the energy crisis. Throughout 2022, basic insulation such as loft and cavity wall insulation could have been rolled out to the homes that need it most and all households offered independent energy saving advice.
“This would have cut energy bills, lowered gas consumption and reduced government spending on the energy price freeze.
“If we get blackouts this winter, the government’s woeful lack of early action and preparedness will be a key reason.”
Climate minister suggests King Charles can attend Cop27 if he wishes
A minister has suggested the King can make his own decision on whether to attend an international climate conference in Egypt, amid reports that the Prime Minister advised the monarch not to attend.
Liz Truss reportedly objected to King Charles III attending Cop27, due to take place in Sharm el-Sheikh next month.
Speaking during a series of broadcast interviews on Friday morning, climate minister Graham Stuart said “where King Charles decides to go, I think is very much up to him”, but added that “ministers doubtless would advise”.
But Mr Stuart also said that he did not know if the report of the Prime Minister’s intervention was correct.
Buckingham Palace has confirmed that Charles will not be attending the international gathering, despite his long-standing commitment to environmental issues.
The Sunday Times reported that the decision not to go was taken after the Prime Minister raised objections during an audience with the monarch at the Palace last month.
“It’s been clear this is a decision that has been made consensually between the King and the Government,” Levelling Up Secretary Simon Clarke said earlier this week.
Any suggestion that the King was “ordered to stay away” are “simply not true”, Mr Clarke said.
Ms Stuart, asked when asked about the reports, said on Friday: “Where King Charles decides to go, I think is very much up to him.”
Asked again if the reports were correct, he said: “I don’t know.”
And then challenged over whether he as climate minister would like the King to go, Mr Stuart said: “I don’t think it’s for ministers … to be telling the King what he should or shouldn’t do.”
Asked again about the reports when speaking on LBC, Mr Stuart said: “I don’t. I can’t comment on that.
“Whether the King, Charles, goes to Sharm (el-Sheikh)… would have thought would be up to him, although ministers doubtless would advise.”
Licences made available for sectors of the North Sea to spark new gas and oil supplies
Licences are being made available for sectors of the North Sea – known as blocks – with the NSTA estimating more than 100 may be granted to encourage production of new gas and oil supplies.
Companies are being urged to apply for licences covering areas to the west of Shetland, in the northern North Sea, the central North Sea, the southern North Sea and east Irish Sea.
A total of 898 blocks and part-blocks are being made available – but in a bid to encourage production of new oil and gas supplies as quickly as possible, the NSTA has identified four “priority cluster areas” in the southern North Sea.
These areas – located off Norfolk, Lincolnshire and Yorkshire – are known to contain hydrocarbons and are close to existing infrastructure, giving them the potential to be developed quickly.
