Business energy

UK SME’s wasting £82 million per year

The Energy Efficiency Financing (EEF) Scheme has revealed that SME’s in the UK are wasting more than £82 million on their energy bills each year. The analysis stated that the overspending on energy was due to SME’s having old energy efficiency technology fitted on their premises and using old equipment that would not be as energy efficient as newer models of the same equipment.

Will the ESOS deadline extension be enough?

With news of the ESOS deadline extension sinking in, it has lead to some to question whether the extra time will be enough for some companies. Under the new guidelines companies will need to notify the Environmental Agency if they are going to miss the old deadline of December the 5th, which will then give them until January 29th.

With the extension falling over the Christmas period with factory shutdowns and holidays overlapping, many experts believe that despite the extension a large number of companies will still fail to comply.   

ESOS deadline extended

The Environment agency has announced that it will be extending the deadline to comply with ESOS and will not be sanctioning any businesses that miss the December the 5th deadline. Instead the deadline to comply will be moved to January 2016.

Carbon reporting and taxation needs to be streamlined

A new consultation is to advise the government that its policies for carbon taxation and carbon reporting need to be more streamlined. Currently businesses have two energy tax schemes through the Climate Change Levy (CCL) and the Carbon Reduction Commitment  (CRC) as well as three separate carbon reporting requirements in the forms of ESOS, CRC  and mandatory Carbon Reporting.

Energy firms take Government to court over CCL exemption

The UK Government will be taken to court by two energy firms because of the removal of the Climate Change Levy (CCL) exemption. The Climate Change Levy is a tax on business energy usage which affects all businesses within the UK, however businesses sourcing their energy from renewables used to receive tax breaks. The energy firms claim they were not given sufficient notice to adapt their business accordingly.

Gas demand lower than expected

Gas demand has been reported as lower than expected for this time of year, although prices have risen throughout the week. Oil prices have started to increase again over the past week, rising from $43 per barrel to just over $51 per barrel.

Electricity prices have also followed gas and oil rising sharply this week. A power outage at the Sleipner Platform caused it to shutdown this week which stopped Norwegian LNG imports. This is believed to have contributed to the rise in gas and electric prices.

UK Government gives the go ahead for £3 billion North Sea gas field

A new gas project in the North Sea worth £3 billion  has been given the go ahead by the UK Oil & Gas Authority (OGA). The OGA was launched in April 2015 as one of the first moves by the new conservative government to act as the governing body to the North Sea oil and gas industry and assist with economic recovery.

The Culzean field is the biggest discovery made in the North Sea for a decade and holds around a quarter of a billion barrels of oil equivalent. It is expected that it will produce enough gas to meet 5% of the UK’s needs by the time it is fully operational.

Proposal to close the Feed in Tariff (FiT) proposed by the DECC

The Department of Energy and Climate Change (DECC) has put a proposal forward that would have huge affects on the renewable energy industry by hugely reducing incentives payed for by the Feed in Tarriff (FiT).

FiTs currently provide businesses payments for generating energy through methods such as installing wind turbines and solar panels. Businesses also receive payments for additional electricity they make by selling it back to the grid.

Oil prices fall again due to low demand

Global oil prices have taken another hit this week due to a surprise drop in demand from the USA and concerns over the Chinese economy. Analysts have indicated that the glut of oil is expected to continue into the new year which will keep prices low for the foreseeable future.

Last coal-fired power plant in Scotland to close

Scottish Power has announced that they will be closing Langannet Coal Power Plant at the end of March 2016. This was the last coal powered power plant remaining in Scotland and will close after 46 years of producing power in Scotland.

Scottish power have said that reemployment opportunities will be available for the 230 staff whose jobs are directly affected. The explanation for the close was put down to the high carbon taxes and transmission charges which had caused running the plant to become uneconomic.

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