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British energy strategy: Go Wind, Water and Nuclear

British Energy Strategy is set for new Nuclear Power

EnergyOver at the department of energy and climate change, the government boys must be buzzing with shocking excitement. The new National Energy Policies have been laid down in front of parliament. The strategies which are looking to come into play seem to be quite promising for the UKs future energy supply. But not everyone is content with the proposals.

Gas and Oil Power

With green peace refusing to accept clean energy as a viable alternative to gas and oil, they will be pleased to hear that gas and oil power stations will be subjected to a carbon tax. This combined with plans to introduce carbon reclamation capabilities into these types of power stations to recycle and reduce emissions. The strategy sets out that the goal is a reduction in emmisions from the power industry in the region of about 36 % by 2020.

Green peace criticized this strategy and are proposing that we cover most of England with a humongous solar panel. Showing that Green peace really do not have an understanding how modern politics works nor how the energy requirements of a country need to be sustained in order for that country to operate an effective economy.

Nuclear Strategy

Recognizing that gas, oil and coal are finite resources, the government has looked to provide an energy policy which will see modern Britain with the energy to cope with a rising demand for energy. The plans are that the tax payer will not be funding the new nuclear reactors, and EDF Energy is seeking to construct five of them throughout the UK. The policy matches David Cameron’s statement that the existing policy is obsolete being written 30 years ago when the UK production of energy was excessive. It is a stark difference from countries like Germany, where they have opted to go nuclear free entirely producing energy from coal , oil and gas with a hint of sunshine.

Greenpeace have argued we have not learned our mistakes from Japan. With the Tsunami and earth quake strikes we get so frequently every…. actually come to think of it, have we ever been hit by a Tsunami in the UK? I guess the threat of a double natural disaster hitting our nuclear plans are rather low after all?

Renewable Energy

Renewable energy has made it into the policy as well, taxation of energy production will not apply to the renewable energy. However others are criticising the plan saying that the amount that would be generated by the strategy will fall far short of raising sufficient capital to replace our carbon emissions power systems with vast resources of renewable energy generation systems.

Not far enough for the consumer.

The proposals perhaps could have went further. In Sweden the energy policy has been proposed that at the consumer level, meters can be interpreted hourly. This allows for consumers to work out when to use high drain appliances more effectively ie during low cost periods of the day so they can reduce the amount they pay instead of getting hit by a huge bill because the appliance was running during a high spike price time. They propose making it easier to generate one’s own electricity and selling that back to the national energy grid. There are a number of companies out there which are doing this in the UK.

References:
Financial Times | The Times | DN |

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News Politics

Ofgem investigates the power and gas companies

Corporate Fat CatIt will likely come as welcome news to British Gas customers which has a draconian approach to customers. They tend to move magically the previous occupant’s bill over to your name and claim the lot. Which is why when I moved into my current property on day one I “used” £200 worth of Gas and Electricity. It is also likely why British Gas will be the brunt of the representations of being the Bad Guy here. Admittedly, other companies are bad but I am sure that British Gas is going to top the list. Its been nearly a year since we moved in and asked EDF Energy to take over for dual fuel. “Our” latest British Gas bill game in at £500

They all blame the wholesale cost of energy, which according to British gas accounts for 54% of the bill. Of course, the wholesale cost has increased by 25% and the consumer bill by on average 38% so where did the rest of that increase come from? Surely, the sending of bills hasn’t increased that drastically. Lets face it, stamps have remained much the same price for years. Minimum wage hasn’t increased that much either so we can assume these costs are negligible in terms of our consumer bill. So what can that possibly leave that accounts for that huge bill? Oh yeah, the Greedy CEOs of the Energy industry. They are just increasing their profit margin at our cost, again.

Which is why Ofgem the industrial regulator has opted that it is time to investigate the energy suppliers. They did a similar investigation in 2008 however, and pretty much ruled in the favour of the energy companies. Let us hope that this time round they actually hit the energy companies very hard. Huge fines and order them to reduce prices. And whilst they are at it, open up the industry for freely moving between providers. Which clearly is not the case here.

References
UKFundraising
ManagementToday