Energy

The ‘windfall tax’, a concept introduced in the UK by the Blair government, is by definition a one-off seizure of revenue from a profitable industry, to fund an invariably unprofitable but popular project. It has been justified as putting ‘right a bad deal’ on the excesses of profits of unpopular industries. Between 1997 and 1998, Gordon Brown raised £5 billion from privatised utility companies to fund the Welfare-to-Work Programme. Today we have face another well-intentioned policy initiative, of ensuring every NHS patient is guaranteed a cancer test within 7 days, supposedly to be funded by a windfall tax on tobacco companies. Labour’s incoherent economic policy is enough to challenge whether

George Osborne has been in retail mode this morning, selling his pension reforms and explaining how pensioners can unlock their life’s savings. The Chancellor has said that the Treasury will work with the Citizen’s Advice Bureau, Age UK and other organisations to provide pensioners with the best possible impartial guidance to transform their retirement. Interested parties can consult the Treasury for more details. listen to ‘Osborne: Russia sanctions would be an ‘economic hit’ for the UK’ on Audioboo Osborne went on to add that this was what the pension reforms are ‘all about’. More cynical voices might, however, refer to Allister Heath’s article in this morning’s Telegraph, which says: ‘Despite

‘Energy is the single biggest issue facing Jean-Claude Juncker,’ remarked a seasoned Eurocrat to me earlier this week. Europe’s energy infrastructure is decrepit and insular. Rates of cross-border interconnection, for example, remain very low – at just 8 per cent of their production capacity on average across the union according to the FT. The Commission’s 2030 energy package aims to raise the average rate of interconnection to 15 per cent — part of a string of targets designed to complete the single market in energy. Alas, it’s going to take more than a target or two. The level of investment required is enormous (more than 1 trillion euros by the Commission’s

The surface of the sea is a hostile and unforgiving place. Although it covers 71 per cent of the planet, nothing much bigger than a speck lives there. Obviously, lots of slimy and scaly things swim around beneath the surface — but on the very top, pretty much zilch. Mother Nature has found niches for life in the desert, the Arctic and deep underground but, after 4.5 billion years of trying, she is passing on the surface of the sea, thanks all the same. Now you would think that this very long experiment in trying to evolve life in a hostile environment would act as some kind of hint to

‘I don’t know why energy companies invest in Britain,’ said a former energy minister to me a couple of weeks ago. He was referring to the lack of progress on shale exploration (more of which later), but he might easily have been talking about the politicisation of energy prices. In case you haven’t heard, Ofgem, the energy regulator, has written to the Big Six energy firms to ask them to explain why the fall in wholesale prices over the past 12 months has not been passed on to the consumer. Another political row has broken out, with politicians on all sides claiming that the energy market is dysfunctional. They have cause to

There’s an interesting bit in the first chapter of Think Like a Freak, (Allen Lane, £12.99), from the Freakonomics duo, Steven D Levitt and Stephen J Dubner in which the two Steves get to meet David Cameron and a few dozen of the team just before he takes office. They are there to do what freethinkers do, viz, cut through the guff and muddled thinking that surrounds the big issues. Well, I can tell you for free that Mr Cameron is unlikely to sue for his name check. They observe breathlessly that “everything about him radiated competence and confidence. He looked to be exactly the sort of man whom deans

The Prime Minister is planning to cap the total number of onshore wind farms in Britain. But what would limiting the number of wind farms to those in existence or already in the planning system mean? The UK already has 7.1GW worth of turbines spinning away. There are 1.8GW under construction and some 4.3GW approved but not yet built. Once all these are up and running it will bring the total to 12.2GW. The government plans to install between 11GW to 13GW of onshore wind by 2020. If they were to limit turbines to those built or in the process of building, it would make precisely no difference at all.

Ed Miliband started strongly at PMQs today. He seized on Scottish and Southern’s announcement that they’ll freeze energy prices as a justification of his most popular policy, the energy price freeze. He mockingly asked Cameron if he still thought the idea was unworkable and a Communist plot. listen to ‘PMQs: Cameron vs Miliband on energy prices’ on Audioboo