Britain and France have both announced they are to join a groundbreaking initiative to expose systematic corruption, mainly in Africa, requiring mining and oil companies to reveal the taxes paid to national governments and the value of the minerals being extracted.

Nearly 40 countries have already signed but the news that France and the UK have joined the initiative represents a breakthrough.

The decision to join the Extractive Industries Transparency Initiative was announced by the French president, François Hollande, and the British prime minister, David Cameron, ahead of a working dinner in Paris.

The UK helped create the EITI in 2002 and has subsequently funded it, but since the UK was not defined as a “resource-rich” country by the International Monetary Fund, the UK did not feel it necessary to join, even after Barack Obama said the US would join in 2011.

Under the initiative, annual reports publish what tax was paid by oil and mineral companies in a country, and the national government publishes what it received. The report is prepared to an international standard overseen by an independent body. The two sums are then reconciled and any gap can be often be attributed to corruption. The move also strengthens the powers of the legislature of countries since they have clearer information on what their executives have received.

The current chair of the EITI is Clare Short, the former international development secretary. In a weekend interview she said: “This is billions and billions and it far outweighs anything that goes across the world in aid. If these monies were properly managed and properly invested and used, hundreds of millions, literally, of people could see a better life. At the moment there’s great riches but they’re not lifting up the people in poor countries that have become the target of mining and oil investment in this commodity boom in the way that they should.”

She said: “You can’t force countries, but if a country won’t reform and in the worst case that you talk about where you’ve got a kleptocracy that really is running away with the money, no one can make them change unless they want to.

“But the EITI does leverage change in improvement in some of the countries with really serious problems.”

In Washington last week, David Cameron the current chair of the G8 leading economies, called for more openness among energy companies, claiming a veil of secrecy obscures the conduct of the extractive industries.

He announced an urgent review into Britain’s failure to join the regime, saying: “We cannot call on other countries to live up to these high standards if we are not prepared to do so ourselves.”

The US Securities and Exchange Commission ruled last year that oil and natural gas companies must disclose payments to foreign governments.

At present there are 39 countries involved with the initiative and 23 that are fully compliant.

Source: Guardian Energy

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The government has today unveiled long-awaited plans designed to encourage businesses to curb their electricity consumption and invest in energy efficiency, but Ministers have rejected plans for an energy efficiency feed-in tariff as the means of incentivising energy savings.

The Department of Energy and Climate Change (DECC) today responded to the electricity demand reduction consultation it launched late last year, which set out a series of options designed to deliver substantial cuts in national power demand that would reduce the need for costly new power plants.

The response confirmed the forthcoming Energy Bill would include a market-wide approach to reducing energy rather than targeting specific energy intensive sectors, on the grounds that greater savings could be achieved by opening up the scheme to the whole economy.

But the response rejected plans for an energy efficiency feed-in tariff that would offer premium payments to anyone who delivered an approved level of energy efficiency, despite widespread support for the idea from respondents to the consultation.

Instead the government said it would aim to reduce demand through the capacity market that will be enabled by the Energy Bill and was primarily designed as a means of ensuring sufficient investment in back-up power plants.

Under the new proposals, businesses could be paid to reduce energy use at peak times, in the same way as energy companies will receive capacity payments for operating back-up power plants.

Industry insiders broadly welcomed the government’s plans to introduce some form of electricity demand management scheme, but they were divided over whether the capacity market mechanism would deliver the best results.

According to the government response, many respondents to the consultation thought the capacity market mechanism would fail to reduce demand outside of periods of peak demand.

There were also concerns raised that the system would be too complex for smaller energy users, as payments are expected to be administered through auctions.

Source: Business Green

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Defra and DECC have launched a consultation asking businesses and organisations whether being a part of the EU helps or hinders their work on the environment and climate change.

In the first review of its kind, businesses, experts and individuals will be asked how they feel EU action on the environment and climate change impacts the UK.

The 12 week consultation is part of a wider review known as the Balance of Competences which was launched by the Foreign Secretary William Hague last July.

The Government says the review will further its commitment to examining the balance of power between the EU and the UK.

Groups will be asked about issues such as how far they think the UK might benefit from the EU taking more or less action on the environment and climate change, and whether EU legislation provides the right balance between protecting the environment and the wider UK economic interest.

The consultation is open until August 12 2013 and the findings will be published next winter.

According to the Government, the findings will contribute to a national debate on the environment, climate change and the EU, but will not make specific policy recommendations.

Environment Secretary Owen Paterson said: “This is the first time that people are being asked directly how individual EU policies affect them and their businesses. It’s important that we understand how policies on the environment and climate change affect people living and working with them in everyday life.

“I look forward to hearing the views of businesses and others as they will help inform future discussions and debates on Europe.”

In total, the Government is expected to produce 32 reports by autumn 2014 on how it works with the EU.

Defra has been asked to produce four reports on environment and climate change, agriculture, fisheries and animal health and welfare and food safety.

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Greenhouse gas emissions from power plants and manufacturing installations participating in the EU Emissions Trading System (EU ETS) fell by 2% last year, according to new data from the European Union (EU).

According to the EU, greenhouse gas emissions from “stationary installations” have fallen to 1,867 billion tonnes of CO2-equivalent last year, about 2% below the 2011 level for installations.

The EU ETS covers more than 12,000 power plants and manufacturing installations in the 27 EU member states, Norway and Liechtenstein.

EU climate action commissioner Connie Hedegaard said: “The good news is that emissions declined again in 2012. The bad news is that the supply-demand imbalance has further worsened in large part due to a record use of international credits.

“At the start of phase 3, we see a surplus of almost two billion allowances. These facts underline the need for the European Parliament and Council to act swiftly on back-loading,” she added.

Approaching two billion allowances means that the allowance surplus for emissions doubled in 2012, rising from around 950 million at the end of 2011.

In April, the European Parliament voted against a ‘back-loading’ of carbon emissions allowances. The European Commission proposed to freeze 900 million allowances from the market over the next two years in a plan to push up the price of carbon and make low carbon investments more attractive.

Source: Edie Energy

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Energy Bill could pass this summer as Parliament confirms date for Report Stage
It is now confirmed that the Energy Bill will enter the Report Stage on June 3 and 4 after it has been long criticised for its delay.

Solar is now cheaper than nuclear. Even in the UK.
The Breakthrough Institute, a Californian environment and energy research unit, has released a report about German solar subsidies which suggests solar would be cheaper in the UK.

SSE head Ian Marchant on renewables, nuclear and Donald Rumsfeld
There has been a bit of talk recently on the likelihood of the UK ‘lights going out’ and Ian Marchant agrees.

Water industry needs better leaders
The upcoming Water Bill is gaining momentum in the press and as a result customers are becoming more informed and trying to second guess those in charge.

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National Grid has seen its pre-tax profits increase by six per cent, up to £2,742 million for 2012/13.

The result comes on the back of a “strong performance” in the UK, and also because of an “improved US regulated return”.

The US side of the business “met or exceeded many of the specific expectation” the company set out following the disappointing 2009/10 performance.

However, the profits were hit by ‘superstorm’ Sandy in 2012 and the ‘Nemo’ snow storm in February 2013, which together impacted operating profit by £136m in 2012/13.

Steve Holliday, chief executive at National Grid, said: “This has been an important year for National Grid with the successful conclusion of several major strategic priorities.

“At the same time, we delivered a record operating profit and robust cash flow performance despite another year of significant storms in the US. As a result, we have built a strong platform from which to deliver organic growth and support our new dividend policy.”

Looking forward, National Grid has agreed a new eight year price controls with Ofgem, covering the company’s £24billion of regulated assets.

The company has also introduced a new dividend policy with the aim to grow the ordinary dividend at least in line with the rate of RPI inflation each year.

Holliday added: “In the UK, we are positioned to make a strong start to the new eight year regulatory regime.

“In the US, we are focused on securing the benefits of our recent rate agreements and investment in new systems while delivering enhanced customer service and network growth which will help us to build on our significant progress to date.

“Overall, we expect to deliver another year of good operating performance and dividend growth.”

Source: Utility Week

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The chief executive of the Northern Ireland’s Utility Regulator is to step down in October, it was announced today.

Shane Lynch, who was appointed as chief executive in 2010, said it had been a “privilege” to lead the work of Utility Regulator.

Commenting on his decision, Lynch said: “The autumn will mark the end of my fourth year with the Utility Regulator. Before my departure, I hope to have substantially delivered on the objectives of our corporate strategy, including making a full contribution to the Competition Commission’s determination of the NIE price control. I also want to allow enough time for my successor to participate in the formulation of our next 5-year corporate strategy, effective from April 2014″.

Bill Emery, chairman of the Utility Regulator, said: “On behalf of the Board I would like to thank Shane for his work in guiding the Utility Regulator as CEO and for all that he has achieved over the last four years. Building on his previous industry experience, Shane has brought a valuable focus on transparency, accountability and delivery to our organisation. We wish Shane well for the future”.

Utility Regulator said the process to recruit Mr Lynch’s successor would begin shortly.

Source: Utility Week

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DECC has today launched a four-week consultation with proposals on how to controversially limit new biomass projects under the Renewables Obligation mechanism.

Although the Government recognises that biomass will make a “significant contribution” to delivering the UK’s 15% renewable energy target in 2020, it believes that compared with offshore wind, dedicated biomass electricity is a costly way of saving carbon.

The Government therefore announced last year it would introduce a dedicated biomass capacity cap of 400MW of new build dedicated biomass generating capacity.

DECC ran a series of workshops with the Renewable Energy Association (REA) in February, to establish the best process for implementing the 400MW cap.

Much of the feedback from these workshops is reflected in the consultation document, which has been welcomed by the trade association.

However, the REA still insists that a cap on new capacity is a deeply flawed concept.

REA chief executive Gaynor Hartnell said: “The entire concept of capping new dedicated biomass capacity is wrong. There may be as much as 1,000MW of projects still in active development, yet DECC wants to limit the build to only 400MW.”

The REA claims that biomass generates electricity more cheaply than offshore wind.

In addition, it claims cost of carbon saving through biomass can be lower than offshore wind when agricultural residue and waste wood is used as feedstock.

Hartnell said: “Whilst the proposal is probably the best means of implementing this deeply flawed concept, it is not without risk. There could be a situation where more than 400MW applies to go on the register on the same day. The irony is that DECC should be welcoming such projects, rather than turning them away.

“The UK faces an impending capacity crunch in 2015-16 and the steady, baseload green electricity generation from these biomass projects is needed, and can provide significant investment and jobs across the country.”

Last year, the Government lent its support to transitional technologies such as enhanced co-firing, full conversions of coal generating stations to biomass, as well as energy from waste technologies, and combined heat and power (CHP) projects. The cap will not apply to these biomass technologies.

Source: Edie Energy

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The energy market as we know it has six big players – British Gas, EDF, E.ON, nPower, ScottishPower and SSE – who provide both business and domestic energy within the UK. As with a lot of big brands in many other industries they dominate the energy market and many consumers remain unaware that there are other options.

In the UK energy market there are alternatives to the big six, for both domestic and business users. Out of these alternatives there exists suppliers that cater specifically for business, some that provide only gas (or only electricity) and others than specialise in renewable energy. For the list below we have selected six energy companies that supply both gas and electricity for business (they may also have domestic energy services) which may be either traditional or renewable energy.

Opus energy

Opus energy provide gas and electricity for small and medium sized businesses and offer a separate electricity service for larger corporate businesses. The company also expanded their services in 2011 to include renewable energy.

Gazprom

Gazprom was founded in 2006 as a supplier of gas to commercial consumers, before entering the electricity market in 2009 for which they now provide both traditional and renewable electricity.

GDF

The French energy giant has been operating in the UK market since 1999 and offers a wide range of supply products for various types of businesses.

Total Energy

Total Energy provides both energy and gas through two services tailored to either small-to-medium sized business or large business. The company was founded when the gas market was deregulated and now supplies over 50,000 sites.

Crown Energy

Crown Energy is the energy and utility division of Crown Oil Ltd, an oil supplier established 60 years ago. They provide utilities for domestic and commercial properties as well as a service which specifically for house builders.

Ecotricity

Ecotricity are a green energy supplier for both homes and businesses who’s business service also includes building and maintaining turbines on their clients’ sites.

Whilst we have only mentioned six business energy suppliers that aren’t part of the ‘Big Six’, there are several more that can be considered by businesses looking for a new energy supplier. We are also by no means saying that these are the best non-Big Six suppliers or that they are better than the Big Six. We are only saying that there are other options for businesses who feel they don’t have another option.

Free energy guide: The Secrets to Successful Energy Procurement

Inside the guide:

• Dispelling common myths surrounding energy contracts
• Strategies you could you to reduce your business energy costs
• The difference between an independent energy consultant and a broker

To download a copy visit www.energysavingsforbusiness.com

Business Cost Consultants could save your business up to 50% on energy, water, fixed and mobile telecoms. Call us on 0141 226 8525 to find out more.

The Scottish Government has doubled the amount of funding it had promised to support a new energy skills centre to £6.5m.

The funding, announced late last week, will support a range of initiatives, including new wind turbine technician training courses at Ayr and Dumfries and Galloway colleges, as well as other hubs in Scotland, and plans to provide 1,000 transitional training places to help “up-skill” technicians and engineering professionals looking to transfer into the energy sector.

The course will be delivered by Energy Skills Scotland (ESS), a body aiming to work with the energy industry to boost collaboration across the sector and encourage more women, young people, and mid-career professionals into the industry.

First Minister Alex Salmond said Scotland’s energy industry had the potential to offer 1,000s of jobs to qualified engineers and technicians.

“Our unrivalled wind, wave and tidal resources, huge carbon storage capacity, electricity transmission expertise, combined with our engineering expertise, position us as a leading hub for the global development of offshore renewables and CCS technology,” he said.

“To keep pace with our potential, we must continue developing our talent and skills supply and we must ensure Scotland has the capacity to deliver the qualified workforce the industry needs.”

The £6.5m support package is double the initial £3.25m allocated last September, following talks with employers in the industry.

Niall Stuart, chief executive of trade body Scottish Renewables, said the launch of the ESS group “provides a real opportunity for the renewable energy industry to attract even more skilled workers” to a sector that has already created more than 11,000 jobs in Scotland.

“By working in collaboration with industry, ESS will be a valuable asset to the renewables sector, which can continue to build on impressive growth by attracting new talent from colleges and universities and by “up-skilling” professionals looking to transition into the industry from other areas,” he said.

Source: Business Green

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