Utility news
On this page you will find industry news about electricity, renewable energy, gas, water, fixed and mobile telecoms, and other stories. Our news is updated once per month. We cover items such as developing technologies, price changes in the utility markets, takeovers and company collapses, changes in tariffs, the results of investigations by the regulators and market trends.
Please take time also to visit our Business Cost Consultants news page, where we will keep you up to date with developments in Business Cost Consultants, and coverage we have had in news and trade press.
If you would like to be kept up-to-date with utility news, you can join our list of free monthly newsletter subscribers; just go to the Newsletter sign-up page. You can unsubscribe at any time.
- See the Newsletter sign-up page.
Industry news
Water jobs to be cut after watchdog ruling
Thursday, January 28, 2010
Britain’s water companies may have to cut thousands of jobs as executives draw up plans to meet stringent new price controls set by Ofwat, the industry regulator.
A deadline for Britain’s 21 water companies to appeal against the Ofwat ruling — which sets the amount that they can charge households and invest in network upgrades over the next five years — expired last night. All but a handful have chosen to accept the settlement, triggering what industry experts believe will be a string of redundancies to cope with sharply reduced investment.
United Utilities, one of the largest British water suppliers, with almost 9,000 staff, has said already that it would cut 500 positions by the end of March. Pennon, the owner of South West Water, has also refused to rule out compulsory redundancies to drive down costs. Thames Water and Anglian are among other companies thought to be considering cutting staff in some administrative roles.
Richard Laikin, water specialist at Ernst & Young, said that these would be merely the opening salvoes as the industry scrambled to adjust to more austere spending. “It’s inevitable that these companies are considering headcount reductions,” he said. “Ofwat is effectively asking them to find 10 per cent to 15 per cent overall efficiency savings ... Different companies will find different ways to achieve that, but clearly cutting headcount will play an important role.”
Ofwat’s final decision in November called for an average cut in household bills of 1 per cent by 2015. The water companies had asked for an average increase of £31.
Britain’s 21 regulated water companies employ about 40,000 staff directly, while tens of thousands more are employed through subcontractors. One industry insider estimated that job losses across the industry would total “several thousand”.
A spokesman for Thames Water, which supplies 8.5 million customers in the South East, said that contractor companies “would probably bear the brunt” of the reduced spending.
The company is being forced to scale down a key pipeline replacement programme of London’s Victorian sewer network. Yesterday it dropped plans for a legal challenge against Ofwat to the Competition Commission.
Martin Baggs, interim chief executive of Thames Water, said: “Ofwat set us a particularly tough challenge, but there have been some welcome changes from the draft and we will get on and deliver the agreed plan.” Thames plans to spend almost £5 billion on the network over the next five years, down from £5.5 billion.
Only Bristol Water, which was limited to a 7 per cent rise in bills when it asked for a much bigger increase — has publicly announced plans to appeal to the Commission.
This story was featured on The Times website.
Permanent link for this article
Report says Scottish hydropower potential could be doubled
Wednesday, January 27, 2010
Scotland's hydro potential is nearly double the amount previously estimated, according to a study published by the Scottish Government.
An update on a 2008 study on Scotland's hydro resources now estimates there could be 1.2 gigawatts of potential new hydro capacity in 7,043 schemes. This compares to 657 megawatts (MW) according to the 2008 study.
The study has taken account of micro-hydro schemes under 100 kilowatts (kW) and has factored in payments to supply electricity to the grid.
In a related development the Scottish Government has today published a short policy statement on its support for hydro while protecting the water environment.
Energy minister Jim Mather said: "There is a clear untapped potential for smaller, community hydro schemes which can create green energy and tackle climate change.
"While large scale renewable energy development is helping drive economic recovery, there could also be substantial economic and social benefit from micro-hydro schemes.
"In optimising that potential, care must be taken to avoid adverse impacts on our water environment.
"While every new scheme must be assessed on its own merits, if we can tap into new hydro power we can tackle climate change and continue to stimulate sustainable economic growth."
The increase in site numbers compared to the 2008 study is largely in the sub-100 kW range due to the favourable tariff for micro-hydro generation.
This story was featured on the Utility Week website.
Permanent link for this article
Scottish Power plans smart grid project for Glasgow
Tuesday, January 26, 2010
Scottish Power has applied for £6 million funding from the Low Carbon Investment Fund to develop and install a "smart grid" in the Glasgow area.
The company said it had set up a dedicated team of engineers to work on the concept, based on a pilot in the Clyde Gateway, and it would use its own investment as well as seeking funds from the Department of Energy and Climate Change and the energy regulator Ofgem.
It said its ambition is to demonstrate the latest smart grid technology and use the learning to develop proposals for wider and larger scale smart grid applications across Glasgow and our UK operations. The smart grid will also allow householders to generate their own power and sell any excess.
Frank Mitchell, director of ScottishPower Energy Networks, explained: "A smart grid requires the application of new intelligent technology to the existing electricity network so that its operation can be optimised for the twenty first century.
"Smart grids will be able to automatically start selected appliances, such as washing machines, or even factory equipment when the cost of electricity is at its lowest in off-peak hours. During the periods of highest usage it could do the opposite, turning off unnecessary appliances to reduce demand and save energy."
This story was featured on the Utility Week website.
Permanent link for this article
Jobs will go as United Utilities swallows regulator’s five-year ruling
Monday, January 25, 2010
Fresh job cuts are feared at United Utilities after the UK’s largest listed water company opted to accept the industry regulator’s tough new price limits for the next five years.
The company, which provides water and waste-water services to 7 million households in the North West, said yesterday that it would accept price limits that would lead to bills falling in real terms for customers.
The decision puts more pressure on Thames Water, which has criticised Ofwat’s decisions in the five-year price review, to say whether it will accept the regulator’s ruling. It has indicated that it will wait until January 26, the last possible deadline for an appeal to the Competition Commission, before revealing its decision.
Macquarie, the Australian bank that owns Thames, needs to inject more equity into the company to fund its huge capital programme, so many analysts believe Thames has nothing to lose by going to the commission.
Philip Green, chief executive of United Utilities, said: “We believe that, on balance, it is not in the best interests of our shareholders and customers to seek a referral to the Competition Commission.
“This has been a genuinely tough settlement for us and the regulator has been tough but fair. It will be challenging but we think we can do it.”
Earlier this week Pennon, owner of South West Water, and Severn Trent said that they would not take their determinations to the commission.
Shares in United Utilities closed up 16½p, or 3.2 per cent, at 525p, as it surprised the market by making only a 12.5 per cent cut in the dividend, half the reduction that had been expected.
There was also relief in the markets that United Utilities was able to outline a number of operational and financing changes it had made to help achieve efficiency savings. The company has already shed 500 jobs this financial year, in anticipation of a tough settlement, and Mr Green said there would inevitably be more cuts, though he could not say how many.
The company has fixed the interest for 90 per cent of its £4.9 billion debt, at an average nominal rate of 5 to 5.5 per cent. At the same time, it has cut the cost of serving each customer from £23 to £19. Mr Green even raised the possibility of outperforming its regulatory targets in some areas.
Its will pay a total dividend of 34.3p a share for this financial year, but will cut it to 30p for the next 12 months.
The company will spend £3.6 billion improving the water and waste-water infrastructure in the North West in the next five years, against the £4 billion it had wanted to spend. By 2015 the average bill will have fallen by £9 compared with today’s prices.
In November, United Utilities sold its minority stakes in Northern Gas Networks and the Manila Water Company, realising about £130 million. It plans to sell its last non-regulated businesses in the UK, Australia and the Middle East, which could raise another £270 million and turn it into a pure water company.
This story was featured on The Times Online website.
Permanent link for this article
Cold winter leaves utilities with a warm feeling inside
Monday, January 25, 2010
The cold winter weather this year will deliver a £100 million boost to the profits of Britain’s Big Six energy companies, according to forecasts by City analysts.
Centrica, the owner of British Gas and Britain’s largest gas and electricity supplier, with 16 million customers, is likely to be the biggest single winner, Peter Atherton, utilities analyst at Citigroup, said.
He forecast that Centrica would rake in extra operating profits of between £40 million and £50 million over the past month, after a plunge in average UK temperatures in midDecember that prompted millions of consumers to turn up their thermostats and use more gas and electricity.
He said that the company had benefited by about £1.5 million in extra profits each day in that period.
Scottish & Southern Energy (SSE) was likely to enjoy a boost to profits of £25 million to £30 million over the same period.
The other big suppliers — EDF, E.ON, ScottishPower and RWE npower — also stood to scoop windfall profits, Mr Atherton said. “They will all have benefited. It could easily add up to an extra £100 million in profits between them.”
Consumption of gas and electricity soared in mid-December as temperatures plunged and Britain was hit by its most severe bout of winter weather in decades.
On January 7, UK daily gas demand hit an all-time record high of 454 million cubic metres, up 30 per cent from a seasonal average of 350 million cubic metres.
On the same day, British electricity demand hit a high of 58 gigawatts, up from a seasonal average of 56.2 gigawatts.
Yet the predictions of big increases in corporate profits have stoked anger from consumer groups. Robert Hammond, energy expert for Consumer Focus, said: “All the energy suppliers will be enjoying rocketing profits while millions of consumers will be worrying about how to afford to keep warm. Suppliers have failed to pass on wholesale price cuts and have boosted their profits by not reducing prices before customers turn up their heating in the cold winter.”
He called for a Competition Commission investigation to address the problem.
This story was featured on the Times Online website.
Permanent link for this article
Bristol Water cuts up rough on price limit
Monday, January 25, 2010
More than a million Bristolians and households in the outlying districts of the West Country city are in danger of having their water cut off because of a lack of investment
From The Times January 22, 2010
Bristol Water cuts up rough on price limit Robert Lea 8 Comments
Recommend? More than a million Bristolians and households in the outlying districts of the West Country city are in danger of having their water cut off because of a lack of investment.
The claim was made by Bristol Water, the local supplier, which in an unprecedented move is taking Ofwat, the industry regulator, to the Competition Commission over what the utility can charge its customers.
Bristol Water is owned by Aguas de Barcelona, the Spanish utility, which is refusing to inject any extra cash to keep prices down in the area.
In a five-year price review of the nation’s water charges, Ofwat ruled against Bristol Water’s plans to increase charges for its customers by nearly a third.
The company said it needed to raise prices to improve the mains network and ensure security of supply in a region where neighbouring Gloucestershire and its residents have been beset by floods.
Bristol Water had wanted to raise its prices from the current £157 a year to £202 by 2015 to supply water to households that are currently charged an additional £200 a year by Wessex Water for dealing with their sewerage.
However, in a final determination in November, Ofwat said that Bristol Water could raise its charges to only £168.
Instead of agreeing to the ruling, Bristol Water has now become the first supplier to refer the regulator to the competition authorities over a five-year price settlement. “Ofwat’s final determination was simply unacceptable,” a spokesman said. “We need to be able to finance our obligations to ensure security of supply.
“Gloucestershire is just up the road and they had no mains supply for two weeks after the floods. That could happen in our area. We have said that we need to spend another £319 million on investment. Ofwat is saying we can only spend £244 million. That is putting hundreds of thousands of households at risk.”
The spokesman indicated that the fact Bristol Water was part of a larger foreign group may have been an issue in Ofwat’s apparently tough stance. “The inference was the shortfall in the sums could be made up from an equity injection from our parent.”
Last year Bristol Water made pre-tax profits of £17 million and paid dividends to its parent of £8.8 million.
The company has published its own research, which reports that customers support its plans to charge them more than £200 a year. It said a survey of 867 households found 55 per cent backed a rise in bills of £4 a month to maintain or improve services.
An Ofwat spokesperson said: “The option for companies to refer our decision is a crucial part of ensuring a fair, transparent price-review process.”
This story was featured on the Times Online website.
Permanent link for this article
Ericsson cutting an extra 1,500 jobs
Monday, January 25, 2010
Swedish telecoms equipment group Ericsson has said it is cutting an extra 1,500 jobs, as it reported a 92% fall in quarterly profits.
Hit by the cost of its restructuring work, and a continuing drop in orders, its net profit for October to December was 314m kronors ($43m; £27m).
This compares with 3.89bn kronors for the same quarter in 2008.
The latest 1,500 job cuts come on top of the 5,000 positions that the company shed last year.
Ericsson said the cost of its continuing restructuring work totalled 4.3bn kronors between October and December, and 11.3bn kroners for 2009 as a whole.
Its sales for the last quarter of 2009 fell by 13% to 58.3bn kroners, as global spending on telecoms equipment continued to fall, and as Ericsson faced increased competition from China's Huawei.
This story was featured on the BBC News website.
Permanent link for this article
EDF chief renounces Veolia salary
Monday, January 25, 2010
Henri Proglio, executive chairman of EDF, France’s state-controlled electricity group, has bowed to public pressure by renouncing his salary as non-executive chairman at Veolia.
In a press statement put out by EDF, Mr Proglio said on Thursday night that “the controversy threatens to prevent me from carrying out the industrial and social project I have forged for EDF.” He added this had prompted him to renounce all remuneration from Veolia, the environmental services group.
His decision will prove a relief to Christine Lagarde, finance minister. It comes a day after she was forced to defend his two salaries to parliamentarians, having previously said he would receive only one salary as head of EDF.
A finance ministry official said on Thursday night that Ms Largarde had telephoned Mr Proglio to thank him for recognising the public outcry.
The revelation this week that Mr Proglio would receive two salaries, totalling €2m ($2.8m), of which €450,000 would be from Veolia, caused a public and political outcry with the opposition Socialist party demanding an inquiry.
Mr Proglio’s insistence on remaining at Veolia – where he had been chief executive prior to his appointment as EDF boss in November – proved controversial from the start, with accusations that his dual role represented a potential conflict of interest.
He also sparked controversy just days before taking his new job at EDF, when he said the creation of Areva, the state-controlled nuclear operator, was “probably an error”.
Tensions between Areva and EDF over a fuel treatment contract came to a head this week after the government ordered the two companies to settle their dispute.
When Mr Proglio took on the EDF job in November, Ms Lagarde said that even if he had two roles, he would receive only one salary.
However, she changed tack this week, arguing that his double pay did not exceed his private sector remuneration. Mr Proglio: “is not paid more than when he was at Veolia. We have to face reality – this is a competitive market.”
Mr Proglio received €2.5m in his previous job in 2007, before falling to €1.6m in 2008 because of a drop in his variable pay linked to the group’s poor results that year.
Pierre Gadonneix, Mr Proglio’s predecessor at EDF, received €1.1m in 2008.
Mr Proglio’s fortunes may yet recover. One government insider suggested that EDF might raise his pay at a later stage.
This story was featured on The Financial Times.
Permanent link for this article
E.ON to close call centre and axe 800 staff
Thursday, January 21, 2010
E.ON, one of Britain’s biggest energy companies, is set to cut up to 800 jobs after the closure of a call centre in Essex.
The German-owned company, which supplies gas and electricity to 5.5 million customers in the UK, said the closure of the site at Rayleigh, near Southend, was “not being taken lightly” but reflected a drive to improve efficiency across the group, which employs 16,000 staff in Britain.
It said 600 jobs would be cut by the closure of the call centre with another 200 staff affected by of an overhaul of its IT and energy services operations.
Graham Bartlett, managing director of E.ON’s retail business, said: "We absolutely understand the effect that this decision will have on our colleagues who have been affected. The fact of the matter is that our retail business has only just returned to profit after years of loss-making and, to ensure we can continue to do that, we have to make these tough choices.”
The company claimed that the restructuring would lead to the creation of some jobs at other locations. It said some staff would be able to relocate to other sites while others were being offered voluntary redundancy packages.
E.ON, which is based in Dusseldorf, is the world’s largest utility company by revenues and employs 90,000 staff worldwide.
This story was featured in The Times Online.
Permanent link for this article
Doorstep energy sales rules are tightened
Thursday, January 21, 2010
New rules that ensure doorstep energy salesmen hand over a written quote have come into force.
The changes, aimed at preventing cases of mis-selling, started on Monday after an investigation by the energy regulator Ofgem into household bills.
But a comparison website has warned that consumers still need to double-check if they are being offered a better deal than their current tariff.
Tighter rules on energy contracts for small businesses have also come in.
Energy companies must give small businesses clear contracts, and more notice of when a new contract can be negotiated.
Changes
A series of measures to ensure the fairer treatment of customers are being phased in after the new rules were set by the regulator. Ofgem started the investigation into the state of the energy market in the UK in February 2008.
The changes, aimed at preventing cases of mis-selling, started on Monday after an investigation by the energy regulator Ofgem into household bills.
But a comparison website has warned that consumers still need to double-check if they are being offered a better deal than their current tariff.
Tighter rules on energy contracts for small businesses have also come in.
Energy companies must give small businesses clear contracts, and more notice of when a new contract can be negotiated.
Changes
A series of measures to ensure the fairer treatment of customers are being phased in after the new rules were set by the regulator. Ofgem started the investigation into the state of the energy market in the UK in February 2008.
Thirty-eight per cent of the 1,066 people polled were worried about paying their energy bill in January.
Some suggested that they would dip into their own, or their children's savings, to pay the demand.
The survey also found that wearing extra clothes was the biggest tip for staying warm in the cold weather, although three people said they would make love to stay warm.
The Trading Standards Institute (TSI) has warned that distraction burglars are using the cold spell as an opportunity to steal valuables.
The group said that criminals were claiming to work on frozen pipes, but after gaining access to people's homes would steal their belongings.
"The unscrupulous take their opportunities in adversity and we know conmen are taking advantage of widespread problems with plumbing that the freezing weather conditions have caused," said David Sanders, chairman of the TSI.
People requiring plumbing services should use traders recommended by family and friends, get a number of quotes and check whether the traders are part of a reputable trader scheme.
This story was featured on the BBC News website.
Permanent link for this article
EEW powers up for £27 million Scottish wind turbine plant
Sunday, January 17, 2010
SCOTLAND'S manufacturing and renewable energy sectors received an end-of-year boost yesterday after German steel heavyweight EEW Group revealed its intention to invest up to 30 million (£27m) in a Scottish plant.
The firm, which manufactures steel tubes for wind turbines, is yet to finalise its plans but the manufacturing facility is expected to create some 150 jobs.
A location for the plant has also not been named but sources say it is likely to be close
ADVERTISEMENT to the Fife Energy Park – a purpose-built facility on the site of the former Kvaerner oil fabrication yard at Methil.
The EEW plant will create predominantly highly-skilled manufacturing and engineering jobs as the group seeks to capitalise on the burgeoning wind industry in Scotland. About 20 of the expected 150 jobs are likely to be in administration.
EEW said the plant could be up and running within a year and will mainly manufacture steel tubes for wind turbines suitable for use in UK inshore waters.
The group, which is headquartered in Erndtebrück in the North Rhine-Westphalia region of Germany, said it is likely to invest 20m-30m in the plant. It has been attracted to Scotland by Scottish Development International (SDI), which has offered EEW an undisclosed grant.
Niall Stuart, chief executive of Scottish Renewables, said the plant will provide a welcome boost for the sector, which has been named by the Scottish Government as one of the key industries for the future. Stuart said: "This announcement shows people around the globe are alert to the huge opportunities for renewables in Scotland, in particular offshore wind.
"I hope and expect this to be the first of a number of inward investments we are likely to see as people look to capture the value of the huge investment we are likely to see in offshore wind over the next ten to 15 years."
A Scottish Government spokesman said: "EEW's decision to invest in Scotland is very welcome and is further evidence that Scotland is leading the way in offshore renewables. With a quarter of Europe's offshore wind potential and our tremendous skills base, Scotland is the natural home to invest in offshore technology and manufacturing.
"Investment in renewable energy is already driving Scotland's economic recovery, with projects up and down the country supporting highly-skilled, low carbon jobs."
The announcement comes ahead of a call by First Minister Alex Salmond today for increased powers to harness Scotland's green energy potential.
This story was featured on the Business Scotsman website.
Permanent link for this article
Two wind energy projects approved
Wednesday, January 13, 2010
Tens of thousands of homes will be supplied with electricity from two wind farm projects approved by the Scottish government.
The new £80m Baillie farm near Thurso will feed electricity into the controversial upgraded Beauly to Denny power line to supply 25,000 homes.
Fourteen new turbines have been approved for the existing Rothes wind farm in Moray.
The extension will be capable of supplying 20,000 homes.
Twenty-one turbines are to be built at Bardnaheigh Farm, Westfield, near Thurso. Thirty jobs will be created during the farm's construction.
During the planning process, the bid attracted 829 letters of support and 433 objections.
This story was featured on the BBC website.
Permanent link for this article
Brecon Beacons green energy project in running for £1m
Wednesday, January 13, 2010
People behind a scheme aimed at cutting carbon emissions in the Brecon Beacons are waiting to find out if they have won first prize in a £1m competition.
The Green Valleys Project, involving 21 communities in the national park, is a finalist in the Big Green Challenge.
Ten micro hydroelectric systems have already been installed as part of the scheme and a further 50 sites have been indentified in the Beacons.
The result of the competition will be announced on Wednesday.
It aims to cut carbon emissions and promote sustainability, and the final is the culmination of a two-year programme to encourage community groups in the UK to do their bit for the environment.
Llangattock, one the 21 communities involved in the Green Valleys Project, scooped £140,000 in November after winning a challenge set by British Gas to cut energy consumption.
'Extremely excited'
The Big Green Challenge is run by the National Endowment for Science, Technology and Arts (Nesta).
In 2008, 355 groups came forward with a range of ideas aimed at reducing CO2 emissions in their communities.
Nesta selected 100 of the most promising ideas and chose 10 finalists, which included the Green Valleys Project - the only one from Wales.
Grenville Ham, the founder of Green Valleys and an officer at Brecon Beacons National Park Authority, said: "We are extremely excited to hear the final decision that's due to be announced on Wednesday.
"This has been a huge leap of faith for all those hardworking and focussed communities that have supported us.
"The incredible team behind the Green Valleys has been put together almost as if it were fate to bring a dream into reality.
"In 2025 we hope the Green Valleys will realise its long-term ambition of the Brecon Beacons becoming carbon negative."
The winning entry will receive a share of the prize money worth £1m.
This story was featured on the BBC website.
Permanent link for this article
National Grid in talks to avert walkout by workers
Wednesday, January 13, 2010
National Grid is meeting union chiefs today in a last-ditch attempt to stop hundreds of electricity workers walking out during one of the coldest winters on record.
If a strike or overtime ban by workers from the transmission business went ahead, the network could become vulnerable to power failures.
The business has been operating flat out during the recent cold spell to maintain electricity supply in parts of the country where heavy snow has brought down power lines.
Unite, the UK’s largest union, has balloted its members on whether to strike over a change to terms and conditions that would create a two-tier workforce.
While there is support for industrial action within the union, management is hoping that it can avoid that outcome with the last-minute negotiations.
“National Grid cannot confirm any planned meetings between it and the unions, but the company has always said that it is keen to resolve this issue through negotiation,” a spokesman said. “As you’d expect, the company has, of course, taken steps to ensure that any possible industrial action does not have any impact on gas and electricity supplies to consumers or on the safe operation of its networks.”
Talks between the company and Unite have been under way since April after the company said that it wanted to remove health cover and reduce holiday entitlements for new starters. A proposed 1 per cent increase in pay is also behind the dispute.
“In real terms, with the comparative Retail Prices Index at -1.4 per cent at the settlement date of July 2009, the offer amounts to 2.4 per cent above inflation, plus a lump sum equal to about £350 for each employee,” National Grid said.
Unions have said that they would work with management to cover emergency cases and protect vulnerable people.
This story was featured on The Times website.
Permanent link for this article
Gas supply rationed as temperature drops to -21C
Friday, January 08, 2010
The gas was turned off for nearly 100 businesses yesterday to protect domestic power supplies after unprecedented demand brought on by the cold weather.
The national grid was forced to reduce the supply to companies in the North West and East Midlands shortly after issuing its second warning in three days that the system was running out of gas. Demand in recent days has been 28 per cent above seasonal norms and is likely to increase today after temperatures fell to minus 21C in some areas overnight — the coldest night of the winter so far.
Business groups and politicians criticised the Government’s attempts to safeguard the supply and called for more gas storage facilities to be built. “The longstanding vulnerability in our energy system has today been exposed and as a nation we now need to take security of our energy supply more seriously,” said Roger Salomone, the energy adviser of EEF, the engineering employers organisation.
John Hemming, a Liberal Democrat MP, said: “We are on the edge when it comes to our power supplies and there is no safety
National Grid issued a warning that the system would run short when pressure dropped in a pipeline that brings gas from Norway to a terminal at Easington on the East Coast of England. It said that it had been the first time in six years it had been forced to curtail the supply.
Britain’s biggest salt mine and the Government are drawing up rationing plans as councils run out of supplies to grit roads. Gordon Brown asked Salt Union, which runs the Winsford Rock Salt Mine, in Cheshire, to increase production as Richard Stokoe, of the Local Government Association, said that some councils such as West Berkshire had enough for only one round of gritting.
Thousands of minor roads and residential streets were icebound last night. The A628 in Derbyshire and Yorkshire, the A66 in Cumbria, the A1(M) in Co Durham and the M20 in Kent all remained closed along with several roads in Wales. Bus services in Cornwall were cancelled.
Thousands of people were left waiting for delayed flights and trains and hundreds were trapped underground for two hours after a Eurostar train broke down in the Channel tunnel.
Eurostar, which suspended services for three days before Christmas as a result of snow-related breakdowns, cancelled nine trains and said only a limited service would run today.
Passengers were evacuated from a train in Surbiton, Surrey, because of a fire beneath a carriage. Broken-down trains also caused disruption at Cambridge, Bolton, Colchester and between Bedford and Sevenoaks. Commuters trying to get home last night faced delays. Throughout the day 11 per cent of trains were cancelled and fewer than half ran on time.
Hundreds of flights were cancelled, including more than 130 at Gatwick. EasyJet cut more than 100 services and British Airways cancelled 113 flights at Heathrow and 36 at Gatwick.
Christopher Sturman, the chief executive of the Food Storage and Distribution Federation, said that its members were working “flat out” to get supplies to retail outlets but admitted there were “pinch points”.
Milk supplies are being disrupted by the extreme weather with tankers being prevented from collecting fresh stocks from farms in remote parts of the country. Most problems were in the Midlands and the West of England owing to poor conditions on the roads, a spokesman said.
This story was featured on The Times website.
Permanent link for this article
Gas usage set to hit new record
Thursday, January 07, 2010
Demand for gas in the UK is believed to have hit a new record on Thursday as people attempt to keep their homes warm through the severely cold weather.
The National Grid estimates usage will reach 455.3m cubic metres. The current record is 449m cubic metres, set on 7 January 2003.
The National Grid has had to issue its second alert in three days, asking suppliers to provide more gas.
Some factories have also been asked to switch from gas to other power sources.
Around 200 industrial users in the North West and East Midlands are on what are known as interruptible contracts. They pay a reduced price for power on the understanding that if demand gets too high they will cut their gas use.
For the first time in 10 years, 94 of them were asked to switch to other power sources on Thursday. On Friday, that figure will drop to 27 companies.
"Whilst it is easy to say 'I told you so', the fact is we have been warning of such interruptions for a long time and the need for urgent investment in our infrastructure to avoid them," said Roger Salomone, energy adviser to the manufacturers' organisation, the EEF.
'Unprecedented' alert
The National Grid is forecasting record demand for gas, after 447m cubic metres was used on Wednesday.
Part of the reason for the alert - known as a gas balancing alert (GBA) - is that Norwegian gas fields have had a technical problem and have not been able to supply as much as they promised.
That led to a shortfall of 52m cubic metres of gas, but the system is now back up and running.
The GBA asks energy suppliers to sell more gas into the system.
The Energy Intensive Users Group said it was "unprecedented" to have two such alerts in a week, although it added the system was working.
"We shouldn't overreact," its spokesman Jeremy Nicholson told BBC News. "It is a wake-up call to the market... and it does seem to be working.
"But it indicates too that we are running our system pretty hard, there is not much slack in it, not much insurance there, partly because we don't have enough storage."
This story was features on the BBC Website.
Permanent link for this article
Scotland's politicians outline aims for 2010
Wednesday, January 06, 2010
First Minister Alex Salmond said Scotland needed the power to manage its own natural resources so it could become the energy powerhouse of Europe.
Mr Salmond predicted a "renewables revolution" emanating from a Scotland which had won the "natural lottery" - with wind, wave and tidal resources offering the capacity to produce some 10 times Scotland's own electricity requirements.
The first minister pointed to the Climate Change Act - setting legally-binding targets to cut Scottish greenhouse gas emissions by 42% and 80% by 2020 and 2050 respectively - as the most important legislation passed by the parliament in 2009.
He said: "In Copenhagen I spoke about Scotland's energy potential, our green energy potential, our ambition to be the energy powerhouse of Europe.
"Many countries saw the lead that Scotland was taking as an example of the legislation and of the action that must be taken to protect our planet collectively.
"Despite the disappointment of Copenhagen, people power internationally will force political leadership to commit to the ambitious targets for their countries that Scotland has already set."
But the first minister believes Scotland must get the benefit of its own resources if it is to become a major exporter and "the energy powerhouse of Europe".
He said: "Even now, we're being held back in the exploitation of these renewables because we now have to pay in Scotland much higher connection charges to the electricity grid than companies have to pay south of the border. That's totally unfair and totally unacceptable.
"If we're going to make the most of this renewable revolution, then we're going to have to have equal access to the grid - and the powers for our parliament to secure that proper access.
"And that's why it's important, as we move into this new year, that the people of Scotland are given their say in making sure that their parliament can extend its powers to have the ability to mobilise the resources of Scotland for Scotland's benefit.
"The referendum on the constitution is not an abstraction - it's not something for politicians. It's something for every person in Scotland. Because if we're going to harness the power of Scotland, then we need to give Scotland power.
"So this Ne'er Day, as we look forward to 2010, I'm wishing you a happy new year - renewing the energy of Scotland, renewing Scotland as a country. Have a guid new year."
This story was featured on the BBC News website.
Permanent link for this article
Selset Reservoir hydro scheme unveiled
Wednesday, January 06, 2010
A hydro-electric power station is to be built at a County Durham reservoir, water company bosses have revealed
Northumbrian Water said the station would be built at Selset Reservoir, near Barnard Castle as part of a project with energy firm npower.
Construction work on the £2.5m scheme is due to start later this year.
Northumbrian Water said the station would produce enough electricity for about 1,000 homes as well as feeding supplies into the national grid.
The scheme will add to the firm's larger hydro-electric plant at Kielder Water in Northumberland, which generates electricity for about 5,000 homes.
The water level of Selset reservoir which, when full, holds 15 billion litres will be lowered to facilitate safe working conditions during construction.
Dr Colin Price, Northumbrian Water's technical director, said: "This project is one of several energy generation schemes Northumbrian Water is currently developing.
He said: "We believe that creating renewable energy where we can is the responsible way forward for the business, our customers and the environment."
This story was featured on the BBC News website.
Permanent link for this article
British Gas fails to pass on £400 boiler grants to customers
Wednesday, January 06, 2010
British Gas is profiting from the Government’s boiler scrappage scheme by failing to pass on the full value of the grants. The company is refusing to offer its usual discounts to customers who apply for a £400 grant.
Some homes could be better off ignoring the scheme and negotiating a discount with an installation company.
The Prime Minister announced the scrappage scheme yesterday at the company’s training centre for boiler engineers in Kent. He claimed that the scheme could be worth up to £800 for households taking part because some companies, including British Gas, had agreed to match the £400 offered by the Government. Mr Brown did not mention that British Gas operates an unsubsidised scheme under which all customers could get a £752 discount on a new boiler This offer comprises £300 off the price of the boiler, radiator controls worth £248 and free servicing and repairs for a year worth £204.
A customer adviser at British Gas’s call centre said anyone applying for a scrappage grant would not be eligible for these discounts: “It’s much of a muchness whether you go for the scrappage grant or the savings we already offer. But you can’t get both.”
People aged over 60 might get a much larger discount under the Warm Front subsidy scheme than if they apply for the scrappage scheme. British Gas offers a discount of £1,052 for over-60s under Warm Front but only £800 under the scrappage scheme.
Mr Brown claimed that up to 125,000 households in England would benefit from the scrappage scheme, saving £200 to £235 a year on energy bills. The Department of Energy and Climate Change said the scheme, costing £50 million, would “help sustain work for 130,000 boiler installers and over 25 UK-based boiler manufacturers”.
The scrappage scheme is open to the 3.5 million homes with inefficient “G” rated boilers with a permanent pilot light. Most gas boilers more than 15 years old will qualify, as will oil-fired boilers more than 25 years old.
The Energy Saving Trust is advising home owners on whether their boilers qualify. But the public funds allocated will cover only one in 28 of the homes with G rated boilers. Consumer Focus said: “The [scrappage] scheme will help those on low incomes who do not qualify for the Warm Front scheme, but the budget limits the number of people it will help.
“The amount people will save depends on the cost of installing a new boiler, which can vary considerably. Nevertheless, “G” rated boilers are so inefficient that most people installing a new system should see their gas bills fall dramatically.”
British Gas denied failing to pass on the full benefit of the £400 scrappage grant but their spokeswoman admitted that some customers could save almost as much by taking up existing unsubsidised discount deals. “It’s about choosing what’s right for you,” she said.
This story was featured on the Times website.
Permanent link for this article
Grid Bosses Issue Gas Supply Alert
Tuesday, January 05, 2010
The National Grid is warning power suppliers to use less gas after a 30% rise on normal seasonal demand during the continued wintry weather.
National Grid (NG) issued a gas balancing alert (GBA) on Monday afternoon, only the second time that the mechanism has been used.
A spokesman said the alert had already proved effective and bosses were meeting again on Tuesday to decide whether to issue a further GBA after the current warning expires at 6am.
GBAs are a way of warning customers to ease off on the fuel as well as encouraging suppliers to bring in more gas.
The grid has received extra gas from a terminal in the Isle of Grain in Kent, and from Belgium and Norway.
A spokesman said that some power suppliers had stopped using gas on Monday afternoon, which eased the pressure.
He added: "The big generators like E.ON have gas-fired power stations and coal-fired power stations. They can choose to switch from gas to coal.
"We thought there was going to be a certain amount of gas going into the country and then a few suppliers, their supplies dropped off.
"They weren't going to be able to provide the amount that we thought, so we issued a GBA so hopefully that's going to bring it back to where it should be."
The first time a GBA was used was in March 2006.
This story was featured on the Daily Express website.
Permanent link for this article
British Gas to double £400 offer for boiler scrappage scheme
Tuesday, January 05, 2010
Britsih Gas is offering to match the Government's £400 allowance, which means customers can cut a total of £800 from the cost of a new boiler from British Gas.
Sam Laidlaw, Chief Executive of Centrica (the owner of British Gas), said: "If the UK is to meet its tough carbon reduction targets, it is vital that old, inefficient energy technologies are replaced.
The Government's boiler scrappage scheme is, therefore, a very welcome initiative; it will assist the replacement of the country's four million inefficient domestic boilers with new boilers, which can improve energy efficiency by up to 30pc - an important step towards lowering carbon emissions."
Npower was the first to launch its own boiler scrappage scheme last December. It said that people do not have to be Npower customers to qualify, the only stipulations are that the boiler is bought and installed by Npower.
Kevin Miles, CEO of Npower retail, said: "It's vital we play our part in supporting this Government initiative for two very good reasons. First, the energy savings that a new boiler brings – nearly £235 off your annual gas bill – compared with a G Rated boiler. Secondly, very old boilers, unless properly maintained, could pose a health and safety risk."
This story was featured on The Telegraph website.
Permanent link for this article
Veolia Said to Consider Shelving Sale of U.K. Water-Unit Stake
Tuesday, January 05, 2010
Veolia Environnement SA, the world’s largest water company, may shelve the sale of a 49 percent stake in its British water division after bids fell short of its expectations, two people familiar with the process said.
The Paris-based company drew bidders including Blackstone Group LP and Goldman Sachs Group Inc.’s infrastructure fund, the people said, declining to be identified because the talks are private. The U.K. water unit as a whole is valued at about $800 million including debt and equity, the people said.
Veolia plans to sell 3 billion euros ($4.5 billion) of assets by 2011 and reduce costs as the global economic slowdown curbs demand for waste treatment and recycling. Its water business in Britain may become less profitable following a proposal by the industry regulator to cut customer charges over the next five years.
While buyout firms target infrastructure assets for their predictable revenue, investors have struggled to access funds for acquisitions as credit markets tightened. Veolia owns Three Valleys, which pipes water to towns including Saffron Walden and Amersham, Tendring Hundred Water, which supplies Clacton on Sea and Harwich, and South East, which serves Dover and Folkestone.
A Veolia spokeswoman declined to comment on the sale of the U.K. water division. Officials at Blackstone and Goldman Sachs also declined to comment.
Price Restrictions
U.K. regulator Ofwat has proposed cutting the fees that Veolia can charge customers in southeast England. The watchdog, which will announce a decision on pricing today, said in July it may cut the average cost of water and sewerage for British homes by 14 pounds ($23) to 330 pounds by 2015 and lower the rate of return water companies can earn on network investments.
Veolia Chief Executive Officer Henri Proglio stepped down this week to take the top job at Electricite de France SA, and will be replaced by Antoine Frerot. Proglio will stay on at Veolia as chairman.
Asset sales will be on target at 1 billion euros this year, with 700 million euros completed as of Sept. 30, Thomas Piquemal, Veolia’s executive vice president in charge of finance, said Nov. 9. Piquemal declined to comment on the possible water-unit sale during an earnings conference call this month.
This story was featured on the Bloomberg website.
Permanent link for this article
Npower criticised over low energy light bulb handout
Saturday, January 02, 2010
An energy company has been criticised for sending out millions of low energy light bulbs to meet its target under a household energy cutting scheme.
The Green Party accused Npower of taking "inexcusable" shortcuts instead of investing in more effective measures such as loft insulation.
Unsolicited mail-outs of light bulbs as an option under the scheme were stopped by the government as of this month.
Npower said the bulbs were "part of a mix of energy-efficient measures".
The regulator Ofgem said it had expressed concern with Npower about the practice of unsolicited mail-shots.
The government ordered energy companies to help pay for measures to cut household energy consumption - such as cavity wall or loft insulation, or by issuing low energy light bulbs - two years ago.
Low energy light bulbs were scrapped as an option in June 2009 - and the ban came into force at the new year.
Npower - Britain's third-largest energy supplier - sent an unrequested selection of low energy bulbs to all of its three million customers before the deadline, the Times reported.
That met the company's requirements under the scheme, but will only cut a fraction of the energy that other measures such as cavity wall or loft insulation will achieve, critics claim.
Reduce emissions
Other major energy firms, including British Gas, are thought to have distributed light bulbs before the practice was banned. It was stopped because it was not clear whether the bulbs were being used.
In July, a consultation paper revealed that energy suppliers have sent households about 200 million bulbs as part of the Carbon Emissions Reduction Target (CERT) scheme.
Energy suppliers' research had suggested that 6% of the bulbs would be unused.
A Green Party spokesman said: "It is inexcusable to take short cuts by sending out millions of unsolicited light bulbs instead of taking more effective measures such as cavity wall or loft insulation."
A Department of Energy and Climate Change spokeswoman said unsolicited mail-outs of light bulbs had been stopped because it was not clear whether they were being used and research suggested enough had been distributed to satisfy demand.
Energy efficiency drive
She said the ban "means energy suppliers will have to fulfil their obligation by providing more installations of loft and cavity wall insulation instead, which will further reduce emissions and permanently lower fuel bills".
"We've recently increased and extended the obligation meaning even more money will be made available into making homes more efficient," she added.
Npower said it was committed to the CERT scheme and "was doing the right thing by [its] customers and energy efficiency".
A spokesman said: "These low energy bulbs are part of a mix of energy-efficient measures (including cavity wall or loft insulation) - some of which are inherently more expensive than others.
"They should be viewed in the wider context of the 120 projects undertaken by Npower every hour of every day at a cost of over £100m."
Npower customers who have already received low energy bulbs may still contact the company and request financial support for additional carbon reducing measures and will be judged on a case-by-case basis.
This story was featured on the BBC News website.
Permanent link for this article
