PES Energy News – 13 March 2023 

Table of contents:

01 – How Budget day could surprise us: What’s inside the box? – The energy bill support scheme is set for a three-month extension by the government

02 – Green grid by 2035: “Government is asleep at the wheel” – The regulator is looking at a platform that will facilitate the buying and selling of surplus electricity from low carbon energy storage, generation and smart devices

03 – UK flaring ‘down by 50% since 2018′ – The reduction in offshore flaring from last year alone is equivalent to the gas demand of approximately 80,000 homes in the UK, according to a new report

04 – Europe must avoid entering into new Russian LNG deals, says EU energy chief – The move could strengthen the European bloc’s efforts to cut reliance on Russian energy

05 – Man fined for stealing power for his EV from the council – Electricity from the local council’s power box was used by the thief to get his car back on the road

01 – How Budget day could surprise us: What’s inside the box?

The Chancellor, Jeremy Hunt is gearing up for his first Budget announcement.

With just a few days left before the big day, Mr Hunt is no doubt busy putting the final touches on his plans for the country’s finances.

All eyes will be on the Chancellor as he unveils his proposals on Wednesday, outlining the government’s economic priorities for the coming year.

However, what should we expect?

In what could come as a relief to millions of households, a cap on energy bills is expected to remain in place, following a fall in wholesale gas prices.

This development means that the Energy Price Guarantee (EPG), due to increase from £2,500 to £3,000 a year from April, will now stay at the current level for another three months.

Experts say that this move will not only benefit consumers by preventing higher bills but also save taxpayers a considerable amount of money.

The EPG was introduced by the government to protect vulnerable customers from being overcharged for their energy usage — it sets a limit on how much energy suppliers can charge their customers for their standard variable tariffs, which are often the most expensive rates available.

Currently, energy bills can be a significant expense, particularly for those on lower incomes or with larger families.

02 – Green grid by 2035: “Government is asleep at the wheel”

The government’s current commitments to renewable energy and nuclear power alone are “insufficient” to deliver a decarbonised power grid by 2035.

That’s the key message conveyed in a new report by the Climate Change Committee (CCC), which underscores the importance of having access to reliable, resilient, and abundant decarbonised electricity at an affordable price to consumers.

The CCC’s report recommends several measures to achieve a decarbonised power system, including the development of new low carbon backup generation using hydrogen-based power stations and some continued use of fossil gas, made low-carbon through the use of carbon capture and storage.

It also calls for the smart shifting of consumer demand to smooth peaks in demand and absorb excess supply, particularly through the controlled timing of electric vehicle charging and heat pumps.

Additionally, the report highlights the need for new storage solutions, including the production of hydrogen through electrolysis from surplus generation, also known as “green hydrogen,” which can provide long-term storage for later use in generating electricity.

03 – UK flaring ‘down by 50% since 2018’

Public institutions need to be leaders in the net zero transition.

That’s according to a report by the Association for Decentralised Energy (ADE), arguing that confidence will be critical to its success – and this can be created by the government and public sector.

Local authorities are key in this process, the ADE claims – as they can help people understand the importance of implementing net zero and how this will impact their future.

The report, however, caveats this by stating the government will need to provide more resources to local authorities to make this happen.

Openly sharing the benefits experienced by reducing emissions, the steps taken to achieve this and lessons that can be used from past experiences in the coming years is also important.

The analysis also calls for it to be a requirement for public spending that suppliers demonstrate that they are transitioning to net zero in line with the UK’s circled date of 2050.

Author of the report, Joanne Wade, said: “There is an opportunity here for the public sector to drive change. A successful transition to net zero is one that involves everyone and the public sector has many roles to play, both to show that everyone can be involved and also to show that everyone must play their part.” 

04 – Europe must avoid entering into new Russian LNG deals, says EU energy chief

The EU’s energy policy chief has called on European countries and companies to refrain from signing new contracts for the purchase of Russian liquefied natural gas (LNG).

Earlier today, Kadri Simson, had a meeting with IEA’s Executive Director Fatih Birol – they both discussed the challenges in the European energy market.

As the bloc is trying to end its reliance on Russian energy, new deals with Moscow should be avoided, Ms Simson said.

She added: “We can and should get rid of Russian gas completely as soon as possible, still keeping in mind or security of supply.”

The EU Commissioner of Energy urged all member states and companies to cease purchasing Russian LNG and not to enter into new gas contracts with Russia once existing ones have expired.

Russia’s curtailment of gas supplies to Europe last year, following its invasion of Ukraine, led to a crisis in energy supplies and record-high prices.

In response, the EU has pledged to end its reliance on Russian fossil fuels by 2027 and replaced approximately two-thirds of its Russian gas imports last year.

However, while Moscow reduced pipeline gas flows, deliveries of Russian LNG to Europe increased, reaching 22bcm in 2021, up from around 16bcm the previous year, according to a report.

05 – Man fined for stealing power for his EV from the council

A 78-year-old Australian man has been fined $500 (£280) by the police for stealing electricity from a local council’s power box to charge his electric vehicle (EV).

The incident occurred on Sunday when the  man was spotted charging his car in Mount Barker, which is located 363km southeast of Perth.

It’s illegal in Western Australia to charge an electric car in public, except at an approved service point. The local police took to Twitter on Tuesday evening to warn EV drivers against such behaviour and stated that they would prosecute in every instance.

“To clarify. If you want to recharge your e-vehicle, DON’T steal the electricity to do so. Police will prosecute in EVERY instance. This recharge cost the vehicle owner a $500 fine, for stealing from the Shire. Be better,” the tweet read.

The police also used the opportunity to point out an available charging station in Mount Barker, as well as others in the surrounding areas.

The incident has sparked a debate online over the lack of charging infrastructure in regional areas. While some have argued that it highlights the challenges of EVs in such areas, others have called for more charging stations to be installed.

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