Former National Grid CEO Nick Winser – who describes his role as “providing independent advice to DESNZ Ministers on electricity network issues” – has been thinking aloud. The energy industry is struggling to adapt to Britain’s changing politics…
At a recent sector conference, Guido hears the big wig lamented a “worrying” political move away from “climate change denial, to climate change “don’t care”’. According to trade journal Utility Week, he reportedly pointed to the rise of the Reform Party and that infamous Tony Blair Institute report…
He said: “we need to be very careful not to be too distracted by noises“. Reform is certainly more than just noise…
Winser is estimated to have earned around £11 million during his time as CEO of National Grid. He also told a Lords committee back in February he is a “huge fan” of the clean power by 2030 objective and dismissed bill hikes for consumers as a result of going down the ‘renewable path’ as “really very low”. An independent adviser in step with Labour…
Last night the Guardian confirmed Guido’s story that proposals for zonal pricing were set to be dropped. Tomorrow’s news today…
The plan would vary electricity prices according to demand across the country. As Guido reported six days ago the decision was elevated to Downing Street/the Cabinet Office over fears of a political backlash. A potential next Reform government was set to benefit…
Miliband is now back to the drawing board and asking around for ideas on how to get bills down – including “paying battery storage companies to build major capacity in Scotland, or paying them to turn up their capacity on particularly windy days.” For now the grid – and taxpayers – are paying through the nose to turn off wind farms…
British bill payers have already forked out a staggering £650 million this year just to pay wind farms not to produce electricity when it’s too windy, according to campaign website Wasted Wind. The National Grid can’t cope, so turbines are told to switch off, leaving the public to pick up the tab. That number is only rising…
In 2024, the cost to switch off turbines totalled £1 billion in so-called “constraint payments”. At this rate, 2025 will blow past that – landing at a projected £1.26 billion. That’s a 26% increase…
According to Renewable Energy Foundation, bill payers have also coughed up £102,500 to solar panel farms to switch off this year when there’s been too much sun. Here comes the sun, and I say: “It’s more bills”…
Guido hears a decision on zonal pricing for electricity is due imminently. It has been long-awaited…
Zonal pricing – otherwise known as locational pricing – has been the subject of a massive lobbying war between electricity suppliers. It would see the cost of electricity come from regional supply and demand so prices would vary where energy is generated and consumed. Government sources tell Guido that the decision on proposals has been taken away from Miliband and is now sitting with the Cabinet Office and No10 who will make a final decision. This is abnormal and indicates the level of concern from the top of Labour here…
DESNZ has been sitting on an internal report which stipulates that consumer costs may drop by £59 billion if plans are adopted. Guido also hears there are concerns that a large-scale change to pricing will face an immediate backlash and potentially stir more Labour backbench unrest while consumer benefits would only be delivered after the next election. No credit for that – Reform could be in…
A decision is mooted for before summer recess on 22 July. Amid rebellions and a desire for short-term wins the radical proposals are likely to be shelved. The plan for (not much) change…
UPDATE: An industry source tells Guido the government modelled the main alternative option – keeping but modifying national pricing – and it found half the benefits to bill-payers compared to the zonal model.
The Chairman of GB Energy has spent more days working from home this year than any of the numerous offices secured for the organisation around the UK. Lead by example…
Juergen Maier is contracted to work for only 104 days over a year. Guido’s FoI unit asked where he has been working so far this year. DESNZ said “like with any company – publicly or privately owned, the Chair is not required to work in any one location,” insisted board meetings are held at the GB Energy HQ in Aberdeen (which is just desks in the department’s existing office building there), and said that “a significant portion of Juergen’s time is dedicated to high-value external engagement rather than working from a specific office.” You can see where this is going…
This year so far Maier has worked for 32 days from home, 30 from London, six from the ‘HQ’ in Aberdeen, and – ridiculously – only two from his dedicated personal office in Salford. A few more offices around the country should do the trick…
At 78 days of work and 52 “contracted days on formal GBE engagements” DESNZ said “Maier has also spent more days on GBE business than his contract stipulates.” Wow…
Senior staff working on the setup of Great British Energy – which got royal assent in May – are Maier as start-up chairman, Dan McGrail as interim CEO, five start-up non-executive directors and some other senior executive positions. DESNZ staff are currently “expected to spend 40-60% of their working hours in the office as the norm (with a minimum of 40%).” Senior civil servants are increasingly expected across Whitehall to be in the office 60% or more of the time. It ain’t easy…
Ofgem signed off on a £24 billion investment into Britain’s power network today – including major electricity upgrades – all to chase the green dream of hitting Net Zero. As always, it’s the British public picking up the tab…
This massive spend will be funded through levies on household energy bills, with Ofgem confirming an added £104 to network charges by 2031. Of that increase, £30 relates to depreciation off the gas network, and £74 to upgrading the electricity grid to shift toward clean power. Ofgem warned this figure could balloon even further thanks to payments to wind farms for switching off when there’s too much wind. Remember when Ed Miliband promised bills would go down by £300? Another pipe dream…
Speaking to Sky News off the back of Rachel Reeves’ Air Passenger Duty hike, Ryanair chief executive Michael O’Leary said:
“Labour is dependent on those Red Wall seats, and yet every move she makes poisons economic growth and damages the UK’s recovery… it’s the Chancellor who stumbles from policy misstep to policy misstep… I think her policy decisions are incredibly stupid.”
