Why are natural gas prices breaking records in Europe?
Manufacturing leaders are demanding that measures to deal with rising energy costs be implemented “now”.
They also said factories, which depend on a huge amount of natural gas to keep operating, are just “days” away from having to shut down production due to the supply shortage and record gas prices. .
Electricity prices have also skyrocketed, with power plants using gas to generate electricity.
Dr Richard Leese, chairman of the Energy Intensive Users Group (EIUG), told BBC Breakfast: âWhat we have done is present the government with a winter package that we believe is necessary to prevent that these disruptions in supply chains do not happen again. .
“It’s absolutely necessary right now – gas prices are at an all-time high and the companies that make the goods we need are trying to operate under these unprecedented conditions.”
The industry’s’ package of measures’ includes reviewing ‘carbon costs on energy-hungry users’, examining UK grid costs and emergency relief to’ avoid lasting damage to factories. and very expensive equipment âif factories were to close.
David Dalton of the British Glass Manufacturers Association said some companies were “days” away from having to shut down temporarily.
They held talks with business secretary Kwasi Kwarteng on Friday, but the meetings ended without immediate solutions.
Ex-chancellor issues inflation warning
Norman Lamont, Conservative chancellor in the 1990s, warned of the risks of inflation and called for interest rates to rise.
He also said the government’s call for wage increases could further boost inflation.
Amid skyrocketing energy prices and industry shortages, upward price pressure is increasing as the pace of recovery from the pandemic slows.
The Bank of England expects inflation to exceed 4 percent by the end of the year, as its monetary policy committee keeps interest rates at 0.1 percent.
Lord Lamont, Chancellor of Sir John Major, acknowledged that central bankers believe the current inflation rate is “transient” but warned “there is a risk that it will become embedded”.
âThe danger is that inflation takes root, that it leads to wage demands, wage demands in the public sector, and that it becomes extremely difficult to reverse. and faster they may have to go up, âhe told BBC Radio 4 Today program.
âI would personally be in favor of a (hike) interest rates now, but the Bank of England should also consider ending, reducing, its quantitative easing.
“This carries a risk of inflation in the eyes of many people, it also carries a risk of loss of credibility as it might appear that the bank is financing government spending rather than just keeping interest rates low and smoothing out markets. “
Liam jamesOctober 9, 2021 4:26 PM
Manufacturing sectors ‘interdependent’, group says amid rising gas costs
Different areas of manufacturing are “intrinsically linked” and the failure of any one will affect the entire industry, EIUG President Dr Richard Leese said.
He told BBC Breakfast: âWe have already seen the tip of the iceberg with the impact on fertilizers – energy intensive industries manufacture goods in all supply chains, from minerals to paper products.
âAll of this is intrinsically linked, for example, when the fertilizer factory closed or shut down, CO2 is not just necessary for food – we use it in the cement industry to remove the risk of explosion.
“These products are used throughout the supply chain, everything is interrelated, so if one industry is affected, we are all affected.”
Lamiat SabinOctober 9, 2021 3:44 PM
Government plans ‘green’ gas taxes – The Times
The government reportedly intends to introduce new ‘green’ gas charges which could add Â£ 170 per year to gas bills.
A new strategy commits the government to lowering the price of electricity and imposing a levy on gas bills, The temperature reported.
The strategy will be published ahead of the Cop26 climate conference in Glasgow next month.
Lamiat SabinOctober 9, 2021 3:30 PM
Government “No Decision Taken” Yet Amid Gas Crisis – Statement
A spokesperson for the Department for Business, Energy and Industrial Strategy said: âThe UK’s exposure to global gas price volatility underscores the need to move away from fossil fuels to protect consumers in the long term.
“We want to encourage people to adopt more efficient technologies such as heat pumps and electric vehicles by removing taxes on electricity over time, working with industry to reduce the costs of the technologies and ensure that they are as affordable as the current options.
âWe will soon be defining our next heating and building strategy. No decision has been made on our approach.
Lamiat SabinOctober 9, 2021 2:45 PM
UK-India clean energy plan agreed amid national energy crises
The UK and India agreed on plans on Friday to transform their energy sectors to generate clean energy.
The meeting took place as both nations – among many countries – report serious problems with energy supplies and costs.
The UK has seen energy prices skyrocket due to declining natural gas supplies, and parts of India have been plunged into darkness due to a lack of coal to supply power stations.
The virtual meeting took place between UK Secretary for Business Kwasi Kwarteng and Indian Minister for Energy and New and Renewable Energies RK Singh.
The ministers discussed the energy transition activities underway in their countries, such as renewable energies, including solar energy, offshore wind, storage, electric vehicles (EVs) and alternative fuels, according to a press release from Indian Ministry of Energy.
They agreed on an action plan on clean electricity and transport, renewable energy, green finance and clean energy research as part of the 2030 Roadmap, which was launched. by the Prime Ministers of the two countries at the India-UK virtual summit in May.
Lamiat SabinOctober 9, 2021 2:10 PM
Countries using energy supply as weapon, defense secretary says
The energy supply is increasingly being used as a “weapon” by foreign powers to put pressure on other countries, the defense secretary said.
Ben Wallace’s warning about âunconventionalâ weapons came as Number 10 raised concerns that a new Russian-built gas pipeline could have security implications for the UK.
And closer to home, France’s European Minister ClÃ©ment Beaune this week threatened to use the energy supply as a means of “putting pressure” on Britain to comply with the Brexit deal, amid tensions over fishing licenses.
Our political correspondent Jon stone reports:
Andy GregoryOctober 9, 2021 1:29 PM
Lebanon lacks electricity
No more international news for a moment, as Lebanon is plunged into darkness by a power outage that is expected to last several days.
The country’s two largest power plants have been forced to shut down due to fuel shortages, a government official told Reuters on Saturday.
Refresh our breaking story for updates:
Andy GregoryOctober 9, 2021 12:54 PM
India plunged into blackout as PM warns of “serious” crisis
Indian Prime Minister Narendra Modi was warned today that the capital Delhi could face a “serious” electricity crisis as it suffers from a coal shortage for the “third consecutive month”.
Delhi Chief Minister Arvind Kejriwal has written to the prime minister urging his government to take action to ensure that enough coal and gas are delivered to power plants providing electricity to the city.
He tweeted: âDelhi could face an energy crisis. I am personally attentive to the situation. We do our best to avoid it. In the meantime, I wrote a letter to the Honorable Prime Minister requesting his personal intervention.
Today, millions of people in two northern Indian states – Rajasthan and Punjab – have been plunged into power outages of up to four hours each after a number of power plants due to the lack of coal.
Lamiat SabinOctober 9, 2021 12:30 PM
“The real energy price crisis is in the Balkans” – Bloomberg reporter
The energy crisis is stronger in Eastern Europe than in the West, a Bloomberg News reporter said.
Chief energy correspondent Javier Blas said Kosovo’s biggest exporter – the Ferronikeli nickel plant – had shut down all production.
It comes as UK manufacturing executives today warned some factories are just days away from shutting down due to record gas prices.
The Albanian government has declared a state of emergency and is expected to announce energy emergency measures today.
It comes after the Serbian government warned earlier this week that it may choose to ban electricity exports during the winter to lower domestic electricity prices.
Lamiat SabinOctober 9, 2021 12:13
Manufacturers’ suggestions on how to operate factories
Industry leaders presented three proposals to the government on Friday to avoid disrupting supply chains this winter.
They spoke to Business Secretary Kwasi Kwarteng and warned him that electricity costs five times higher than normal levels were “unsustainable” for factories.
Dr Richard Leese, president of the Energy Intensive Users Group (EIUG), told BBC Breakfast: âWinter cost containment measures look at the carbon costs in particular that are imposed on energy intensive users.
âThere is partial relief for some energy consumers, but it is not widespread – we are subject to qualification rules which are rules inherited from joining the European Union.
âOur second step is to look at grid costs in the UK. Network costs are distributed differently compared to other European countries in terms of energy intensive industries receiving a higher proportion of network costs, and that is something in the gift of Ofgem.
âThe third step is to look at emergency measures, if one of our energy-intensive factories needs to shut down quickly, looking at the threshold for emergency relief to try to avoid lasting damage to the factories and to very expensive equipment. “
Lamiat SabinOctober 9, 2021 11:39 AM