Energy

Of all the ministers involved in the Coalition negotiations over energy bills, Ed Davey has had quite the worst experience. He has had to water down his conference bullishness about standing up to the Tories to a sort of amiable plea that the Lib Dems really are keeping the Coalition green. When his departmental junior Michael Fallon won ‘Minister of the Year’ at the Spectator awards this year, one of the judges observed that he had ‘kneecapped Ed Davey’. In his interview on Today this morning, Davey went for Labour, and dodged suggestions that he and his party had lost out. As James reported yesterday, there has been a fair

The Conservative flirtation with environmentalism was never much more than a branding exercise. Now it is over. Today David Cameron wants to ‘cut the green crap’. Perhaps the Prime Minister has been influenced by David Rose’s cover piece in last week’s Spectator — which encouraged the government to repeal the Climate Change Act, abolish its targets, and stop the Energy Bill coming into force. Strong stuff. But let’s suppose the government really were to follow Rose’s strategy, what would happen? A shale gas revolution? Don’t bet on it. As the energy company Cuadrilla has admitted, domestic fracking would have an ‘insignificant‘ impact on prices. The US, which has seen prices fall,

The energy debate is in stasis. Everything, it seems, hangs on the contents of the Autumn Statement. EDF has announced a price rise; bills will go up by an average 3.9 per cent, which is considerably lower than the rest of the Big Six. Yet the company made clear that maintaining low prices will depend on George Osborne. A spokesman said: ‘If the Government makes bigger changes to the cost of its social and environmental schemes than EDF Energy has anticipated, the company pledges to pass these savings onto customers. However, if changes to social and environmental programmes are less than anticipated, the company may have to review its standard variable prices

Ed Miliband’s energy freeze pledge won him ‘political speech of the year’ but has had the unintended (yet inevitable) consequence of throwing the energy market into a spasm. The head of Npower, Paul Massara, has said that the political uncertainty means we may not have enough power to cover demand. He has told BBC Hardtalk:- ‘The amount of spare capacity to meet the peak requirement has dropped from somewhere around 15 per cent to five… and unless the UK can create a politically stable environment to attract new capital, that capital will not come in… The more government creates uncertainty with things like price freezes or other changes, it means there’s

Ed Miliband’s aides used to scurry around the parliamentary estate, their shoulders hunched. A look in their eyes suggested that they feared their boss’s harshest critics were right. But times have changed. Now Team Ed marches with heads high. The success of his pledge to freeze energy prices has given them a warm glow. Five weeks on from the Labour leader’s conference speech, his commitment still dominates political debate. It has boosted his personal ratings, helped his party increase its support in the polls and convinced his supporters that he might be Prime Minister after the next election. In these circumstances, one might expect the Tories to be panicking. But

It was a doddle for Ed Miliband at PMQs this afternoon. The nation watched agog yesterday as the energy companies deployed a handful of silk-lined suits to justify their price hikes to a parliamentary committee. Miliband arrived at the house knowing that victory was simple. He just had to fuse the Tories and Big Energy in the public mind and then sit back and enjoy the results. But he got ambushed by David Cameron who had a surprise document up his sleeve. Miliband’s fuel bill. First Cameron reminded us of his advice to consumers last week. ‘Switch your energy company and save £200.’ This idea had been instantly derided by

Yesterday – in a crunch vote in the House of Lords – Labour were narrowly defeated by 216 votes to 202. The issue? Energy bills. Except, this time, the Labour Party was demanding that your bills should RISE by £125 a year. Confused? The quarrel yesterday was all about the ‘2030 decarbonisation target’ – a technocratic term, which means in essence a new carbon tax on your utility bills. It would be a tax on everything. A tax on your fridge, your kettle, your oven, your TV, and every light-bulb in your home. If Britain were to commit to this now, it would mean locking in expensive forms of electricity