Business energy

Key energy reforms for businesses in the budget

The budget delivered by George Osborne on the 8th of July has had a massive effect on the energy sector. A major part of that budget was the removal of the Climate Change Levy (CCL) exemption from renewable energy. The CCL tax effects non domestic users and was created as an incentive for companies to be more energy efficient, however, companies using renewable energy sources were exempt. The Chancellor decided that this was unfair, as it had meant that it was benefiting renewable energy produced abroad.

Gas and power contracts fall again

Seasonal gas and electricity contracts reached record lows in July, as winter storage worries were offset by lower oil prices. A strong pound against the euro, as well as an announcement that additional storage for the winter had been approved helped keep prices on a downward trend.

Annual October 15 gas fell to average 44.7p/th, a 2.7% reduction over the month and Winter 15 contracts fell by 2.3% to reach their lowest point since 2010. Electricity prices followed gas prices with the winter 15 contracts falling by 1% to average £45.4/MWh.

Centrica to cut 6,000 jobs

Centrica has stated that it will be cutting 6,000 jobs after the British Gas side of the company had reported a doubling of its profits for the first part of the year. The majority of the job losses will effect the UK and Centrica is hoping that the majority of the job losses will be through redundancies.

The profits of British Gas have risen from 265 million to £528 million from this point last year, and Centrica has promised to create more jobs in other areas of their business to compensate for the 6,000 they will be cutting.

Why have some businesses still not acted on ESOS?

There has been a huge push by the industry to raise awareness of ESOS through articles, webinars, seminars and workshops, yet there are still some companies that have not started to act on ESOS yet. With the December the 5th deadline now fast approaching, you would think that the majority of companies that must comply, would have at least started to gather the information required for the audit, however, this is not the case.

Gas discovery made in the North Sea

A gas discovery has been made in the North Sea in one of its most mature regions, by Norwegian oil and gas firm Statoil and its partner Total E&P Norge. This comes on the same day that the UK authorities have granted 41 offshore exploration licences in a round of awards.

Critics have pointed out that the award to drill does not mean that the company’s will actually drill, however the opposing side state that the fact there is huge demand for the licences shows that the UK’s North Sea oil and gas industry are still attractive.

Solar and biomass subsidies to be slashed

The Government has set out its plans to reduce business energy costs and residential energy costs. The plans centre around the scrapping of subsidies for solar and biomass generation, which has been highly criticised by environmental groups that claim it is a massive step backwards for the UK’s renewable energy industry.

National Grid puts supply security as top priority

The National Grid has taken steps towards securing Great Britain’s electricity supplies for this coming winter. The National Grid is the system operator which connects power plants to major substations and is responsible for ensuring that the electricity generated in Great Britain can be spread efficiently throughout England, Scotland and Wales.

Conservatives to cut green energy subsidies

It is expected that todays budget will announce huge cuts to green energy subsidies after key Conservatives called them ‘out of control’. The Department of Energy and Climate Change was ran by the Lib Dems over the past 5 years during the coalition government, which is what the out of control spending has been blamed on.

Plans for the UK’s Green Investment Bank to be privatised

Plans for the UK’s Green Investment Bank to be privatised have been slammed by a number of pro green Conservatives, who feel it would be a step in the wrong direction for the conservatives green policies. The Green Investment bank was set up by the coalition government as an organisation which invested public money into renewable energy projects. It was viewed by many as a huge success, and one of the only green energy policies that actually worked under the coalition government.

Could your business save money by adopting green vehicles?

A recent report has found that switching to more efficient vehicles could save businesses up to £20 billion throughout the EU. The findings of the report outlined the importance of driving economically, with road traffic accounting for a quarter of all greenhouse gas emissions. A change in road habits to a more economic way of driving could save businesses money on fuel costs.

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