 Brucie5,
That sounds good in theory but pricing of renewables seems somewhat opaque in the UK. I was listening to the CEO of Total Energies on their recent annual results call. Total have a large renewables portfolio these days so their CEO wasn't just bashing green energy when he said they were only getting 11% annualised of the maximum output from their solar farms in Ireland and given that there was no point in building them there. And yet we have new applications to construct new solar farms all over the UK even though output with our similar climate is very poor. Subsidies would seem to be the answer through CFD transfer pricing and guaranteed payments for zero sun days. These payment subsidies to producers ultimately seem to be recovered by surcharges in domestic electricity billing. Same thing happens when wind isn't blowing. More subsidies. Then we have to build additional connectors as wind farm output is often far from heavy user demand. That will go on bills. As do the payments when wind farms are idle or generate too much electricity. Going green sounds good in theory but it depends on the details and in the UK my impression is that the details are somewhat hidden! In summary I'm not totally convinced Milliband's net zero push will deliver the cheaper electricity he promises.
The decision to close/then partially re-open Rough was probably down to Centrica (although that could have been due to lack of subsidies perhaps?) |
fenners6610 Feb '25 - 13:50 - 7555 of 7558
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"UK natural gas futures surged past 130 pence per therm" adding to the cost of heating and energy costs for business (gas is still used to produce electricity).
Which no doubt will delight Miliband - whilst GB sits on huge underutilised gas reserves we continue to run down storage making us vulnerable to huge price hikes whilst we import it at the same time as virtue signal we are moving to net zero.
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Fenners, I hold shares in SQZ so have an interest in their doing well, but:
- We buy energy (O&G) on the international market, and the prices paid by consumers through the marginal pricing mechanism means that we pay (consumers) at the rate of the most expensive energy source (fossil fuels), not the cheaper, or even the aggregate.
- the main contribution to costly energy (Ireland's still more costly) is therefore the price we pay for gas on the international markets; still more than the energy levy. And this is made worse by our lack of storage - not down to Milliband but probably more to do with the Tories. (The Rough Gas Storage was closed in 2017 under Truss!). And being like Ireland, an island, our lack of interconnectors.
- We become more rather less independent by developing our renewables, as these are NOT subject to international wholesale prices; though we also badly need to develop our storage, both for renewables, and for gas, which still obviously plays an important role in back up.
I hope I don't break any china here when I say that broadly speaking, I believe that Milliband is right, if we want a long term independent energy strategy.
Fuel poverty though, is another issue, and not down to renewables, which are one way or other, the future. |
The only problem with that is that pensioners reproduce themselves much more efficiently than babies.Two of us drop off the perch and three more miraculously appear.So 2Tier and Rachel from Complaints better start being nice to us geriatrics.They also need to be nice to the NS and learn the meaning and benefits of energy independence. |
Think you have posted on the wrong thread anitabruzzese ! |
"UK natural gas futures surged past 130 pence per therm" adding to the cost of heating and energy costs for business (gas is still used to produce electricity).
Which no doubt will delight Miliband - whilst GB sits on huge underutilised gas reserves we continue to run down storage making us vulnerable to huge price hikes whilst we import it at the same time as virtue signal we are moving to net zero.
No doubt 5 years of cold winters will suit the govt as more an more OAP's freeze to death , just in time for less votes against them at the next election / lower pensions costs , more IHT receipts , difficult to budget for but if their own figures say 1000's more will die each winter its going to add something , and of course no outcome on the latest social care review - but less OAP's to deal with eventually so win win.
Meanwhile the real net zero is , net zero manufacturing jobs as its impossible to compete given our energy costs. Reeves is on the same page with that one though - just in case energy costs don't achieve it - NI and NLW are more nails in the coffin.... |
Fossil fuels are in demand:- "Porsche is to expand its range of petrol cars after admitting internal combustion engines will be around for "much longer" thanpreviously thought. The decision comes despite looming net zero deadlines in Britain and Europe which will compel carmakers to sell fewer petrol cars and more electric vehicles. "Three cheers for Porsche |
Natural Gas UK GBP (GBp/thm) 142.26 5.80 (+4.25%) New high.
UK natural gas futures surged past 130 pence per therm, hitting their highest level since October 2024, as a cold snap and dwindling storage levels fueled market jitters. With gas stocks depleting faster than usual and February shaping up to be chillier than expected, traders are on edge. Europe's storage sits at just 51% capacity—well below last year’s 69%—while the UK remains particularly exposed due to its limited reserves and heavy reliance on European imports. Adding to the turmoil, global trade tensions are heating up, with China slapping a 15% tariff on US gas in retaliation for Trump’s latest round of tariffs, stoking fears of further supply shocks. |
Euro Gas Storage levels (particularly Holland, France and Germany) are trending below mean average levels. Refilling gas storage in Q2/Q3 and perhaps a tussle with Asia for gas should keep gas prices higher than normal over the summer months. |
Still the price of Nat gas rises and this is in the doldrums... |
Most big charities are gravy trains for their executives.
The Miliband brothers have both found lucrative ways of saving the world. |
Does any salary stink more than raking in £1m a year from a CHARITY ? |
Milliband is just like king Canute, he will pursue his crazed idea with nobody daring to challenge him given his historic standing in the party. When it fails he will swan off into the private sector and join the champagne lifestyle of his smug brother who rakes in a million a year from a charity! |
Interesting split developing on Rosebank within UK.gov, as well as the labour party itself. |
There will be no tariff's - it's just Trump's negotiating tactic - can't believe people fall for it EVERY SINGLE TIME |
DEC looks to be a certain beneficiary of Trumps tariffs, one of the few. |
Dougmachin,
" Do Sercia's assests have an equivalent to a LoM (life of Mine)?"
They have reserves and resources, similar to a mining company. They are updated and published every year, and not hard to find. |
Tariffs to be applied to the EU as well by Trump, I wonder if the UK will escape these? Possibly not especially if Starmer gets too chummy with the EU. |
xxnjr - I'm guessing the company has announced that because they're a bit worried that the orangutan will not give the longer term licence..? Rhum isn't a national security threat to the US but not providing the licence would increase demand for American LPG. It's a long shot but it can't be ruled out. |
Not if global growth is decimated and remember he has vowed to rebuild strategic reserves cheaply. |
O&G stocks may be one of the very few segments to benefit from Trump's new tariff policy. |
Our (very) sleeping partner. Their share of profits were previously held in an escrow account but I'm not sure if that's still the case - I recall some kind of prisoner deal a few years ago which may or may not have affected this. |
Yup......its all about sanctions on Iran. |
Twas ever thus. |
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