Energy

Home Liz Truss, the Prime Minister, came up with a message for the Conservative party conference: ‘Whenever there is change, there is disruption… Everyone will benefit from the result.’ Her words followed a decision not to abolish, after all, the 45p rate of tax, paid by people who earn more than £150,000 a year. Backbench Conservative MPs had let it be known they would not vote for it. ‘The difference this makes really is trivial,’ said Paul Johnson, director of the Institute for Fiscal Studies thinktank. But the pound rose and the government was able to borrow a little more cheaply. Kwasi Kwarteng, the Chancellor of the Exchequer, told the conference: ‘I know the plan put forward only ten days ago has caused a little turbulence. I get it.

Will the lights go out this winter? A letter from the energy regulator Ofgem reveals just how seriously it is taking the prospect, and lays out what would happen if the UK can't get sufficient gas to meet demand. Ofgem declared that ‘here is a possibility that GB entering into a gas supply emergency’ this winter and lays out what would happen in the event of this happening i.e. when insufficient gas is available to supply the gas network at any wholesale price. It turns out that Ofgem would seek to reduce demand by telling the largest gas users to switch off their plant. These, it adds, ‘will likely be large gas-fired power stations’.

The rapid economic collapse that Britain is facing is simply an accelerated version of what the whole of Europe is about to go through; unsustainable borrowing to fund the gap between high energy prices and what households can actually afford. With the sabotage of the Nord Stream pipeline, there is now no feasible way back. Europe can no longer physically import Russian gas – prices will remain high until Europe builds more energy capacity, which could take years. What is likely to come of this? High energy prices will render European manufacturing uncompetitive. European manufacturers will be forced to pass through the higher energy costs in the form of higher prices and consumers will find it cheaper to buy products from countries with normal energy prices.

It almost seems worthy of the opening scene in a Bond film. Vital Russian gas pipelines running beneath the Baltic Sea close to Denmark and Sweden are the victims of sabotage. The two countries have warned of leaks from both Nord Stream 1 and 2 after seismologists suggested there had been underwater explosions. No one wants to claim credit for the deed – yet. Who is the Blofeld behind this dastardly scheme? Former Polish foreign minister Radek Sikorski, no fan of Russia, sardonically declared on Twitter, ‘Thank you, USA’. That set the conspiracy theorists off. As has a video resurfacing of Joe Biden in February promising America would put an end to Nord Stream 2.  Who is the Blofeld behind this dastardly scheme?

California has gone full pagan — it lives and dies by the weather. Over the last few days, the state’s power grid has groaned under the strain of a massive heatwave. Combine that with a hydropower-sapping drought and you’ve got a recipe for blackouts. While major weather events pose challenges for any electricity system, California’s has become uniquely vulnerable to blackouts thanks to an over-investment in weather-dependent wind and solar. Every night during the heatwave, solar experiences its scheduled defeat at the hands of sunset and Californians are left praying for the wind to blow and and the imports to flow.

How pleasant it is to watch an idea fall apart. Especially when it is an idea held by people you don’t particularly care for. In recent years all of the democracies have been plagued by green parties. The kindest interpretation of them is that they provide a wake-up call of some sort: a reminder that we should be kind to our planet, that sort of thing. But in every country they got too free a ride. They ended up preaching catastrophism to a supplicant media. And they ended up demanding that we all get off fossil fuels yesterday without any satisfactory explanation of how we were meant to keep the lights on today. That pleasant period for them came to a halt this year, when that old friend of conservatives – reality – kicked in.