Gas Archives - End Fuel Poverty Coalition

Blair Institute’s ‘reset’ plan risks powering delay, not progress

A new report from the Tony Blair Institute for Global Change backs calls for a “reset” of the UK’s electricity strategy, but critics warn it could play into the hands of those seeking to slow down clean-power investment.

A spokesperson for the End Fuel Poverty Coalition welcomed “any serious discussion about how to make our energy transition smarter, faster and fairer,” but also commented:

“Given that by 2027 the North Sea will no longer be able to provide enough gas to heat our homes, this report must not become a pretext to delay vital moves to improve energy security and bring down bills.

“Scrapping contracts for green power, weakening support for renewables or backing away from decisive grid upgrades will continue to keep households locked into volatile fossil-fuel markets and higher bills.

“The report’s conclusions also raise questions about the Tony Blair Institute’s funding and affiliations. As reported by The Guardian, the Institute has received financial support from governments and entities linked to fossil fuel-producing states, including Saudi Arabia and the United Arab Emirates.”

Ed Matthew, UK programme director for the independent climate change think tank E3G said:

“The only solution to get off the gas price rollercoaster is to get off gas.

“Our research shows that it is possible for the Government to reach its 2030 clean power target whilst reducing electricity bills by more than £200.

“But that requires urgent action by government to implement cost cutting policies, including moving levies off electricity bills into the Exchequer [general taxation].”

Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit (ECIU), added: “The public may be more interested in their energy bills than what percentage of clean power the UK reaches in 2030, but renewables are already lowering wholesale power prices by around a quarter, or £25 per megawatt hour.”

Trump’s fossil fuel fantasy won’t cut UK energy bills

Donald Trump has reignited his war on popular wind power during his UK state visit and urging Prime Minister Sir Keir Starmer to exploit North Sea gas.

At a joint press conference, the US President repeated his “drill, baby, drill” mantra, while Sir Keir struck a more cautious note, stressing a “pragmatic” mix of fossil fuels, renewables and nuclear in the UK’s energy future.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The President remains steadfast in towing the line of his fossil fuel backers who are gaslighting the British public about our energy future.

“The truth is, the North Sea is running out of gas – we have burned most of it. By 2027 it won’t even produce enough to heat our homes and only 14% of its original reserves remain commercially viable.

“No amount of bluster about drilling or fracking will bring back cheap gas, all it does is lock households into more reliance on volatile global gas markets.

“The UK is leading the way and showing the world that scaling up renewables and upgrading homes is the fastest, cheapest route to lower bills and lasting energy security.

“Of course we need to go further to bring down bills by reforming electricity pricing, but this won’t be achieved by importing Donald Trump’s fossil fuel agenda.”

Rosebank gas go-ahead still leaves Brits in the cold

The Government’s approval of the Rosebank oil and gas field has been met with criticism from campaigners and politicians for keeping the country hooked on expensive fossil fuels.

Fewer than one in ten people think that more oil and gas production will reduce bills and increase energy security, a poll suggests.

But even business and energy experts have concerns. The former Chancellor of the Exchequer, Rt Hon Kwasi Kwateng MP, previously said that additional UK production will not “materially affect the wholesale price” of gas that households pay.

Reporters at Bloomberg concluded that: “The field won’t begin pumping oil and gas until at least 2026, and isn’t large enough to have an impact on the security of UK energy supply nor prices. However, it was seen as a test case for whether a country like the UK, which claims leadership in the area of low-carbon policies, should continue to tap fossil fuels.”

Most of the investment from Norwegian oil giant Equinor, which made £4.5bn in post tax profits in the first six months of 2023, will be subject to a tax break as part of Windfall Tax loopholes. If these loopholes were closed, it could raise money to help those in fuel poverty.

In addition, experts calculate that there is a potential loss to the Exchequer. This is based on the gap between the tax breaks being handed to Rosebank’s developers to kick start the project and then the predicted tax payments from the profits of selling Rosebank’s oil reserves coming after the current 75% windfall tax period has elapsed.

Fiona Waters, a spokesperson for the Warm This Winter Campaign, said:

“Our energy system is broken, yet rather than helping the millions of people who are facing another winter of sky high bills, the UK government is choosing to dish out billions in tax breaks to Norwegian oil giant, Equinor. Drilling the Rosebank oil field will not make one bit of difference to UK fuel bills. All while the government delays access to cheap onshore renewable energy that could be powering our homes and bringing down our energy bills.

“The government needs to stop acting for the oil and gas companies and taking decisions that boost their profits, and instead prioritise action that will cut our energy bills and benefit ordinary UK households for good.”

The coordinator of the End Fuel Poverty Coalition told The Guardian:

“Hidden in the small print of the deal is that this project can only go ahead thanks to a massive tax break the Government is giving to international oil and gas giant Equinor.

“Households struggling with their energy bills will be shocked that the new Energy Secretary has chosen to hand a multi-billion pound tax break to this Norwegian firm, rather than help people in the UK suffering in fuel poverty.

“This sum alone could have provided much needed additional support to help disabled households, those living off the gas grid and the elderly.

“The Government’s major drive to keep the country hooked on fossil fuels will be for little reward. Figures show that more North Sea production will only give us an extra year of domestic gas, which will be charged to struggling households at global market prices.”