Page 9 - Gi flipbook September 2018

Traders brace for UK’s possible paper outlining the thinking
of ministers said Britain
exit from EU emissions market wants to retain a close
relationship with the EU on
energy. It was the first time
the government gave any
CARBON TRADERS ARE consultant in London. scheduled to depart the EU detail on its thinking.
preparing for the worst A British withdrawal at the end of March 2019. Staying in the EU single
after the UK government threatens to flood the Not all the roughly market for energy might
suggested it might carbon market with a 100 million tons of spare help smooth trading of
withdraw from the world’s portion of the 1.6 billion allowances would come electricity and natural gas.
biggest emissions-trading euros ($1.9 billion) of to market because many Over the past two decades,
market when the country allowances held by British of the companies holding Britain joined EU nations
leaves the European Union polluters, according to them for future needs also in seeking to smooth
next year. Bloomberg. That would own factories or power borders in energy markets,
The government has said erode a six-year effort by stations covered by the allowing commodities to
it wants to avoid signing up EU leaders sealed this system in other EU nations. flow more freely.
to “wider” environmental spring to cut away a surplus Scrapping UK Energy companies are
and climate change rules in the market that had participation in the eagerly waiting for more
as it negotiates a new depressed prices. carbon market is just one signs from the government
relationship with the EU. Carbon allowances option the government about how the post-Brexit
It’s considering options dropped at the fastest is considering. Prime relationship with the EU
including leaving the pace in a month after Minister Theresa May’s will be structured. ■
single market for energy the government’s plan
or staying in, retaining the was published on 12 July, The UK could be about
possibility the UK won’t snapping the biggest rising to drop out of the ETS
remain part of the carbon streak since 2014.
market after Brexit. The impact on prices
“There’s a good chance would depend on the timing
the UK leaves the European of the withdrawal, because
carbon market,” said Trevor the EU Emissions Trading
Sikorski, Head of Natural System’s current program is
Gas, Coal and Carbon at geared to cover emissions
Energy Aspects, an industry through 2020. Britain is

Energy price cap will make real difference a better energy market

to households, says consumer group for consumers, it is also
important that price
protections remain in place
for vulnerable people once
THE ENERGY PRICE end inflated prices. next winter after receiving the cap is lifted.”
cap will make a “real The Domestic Gas and parliamentary approval. However, comparison
difference” to the 12 Electricity (Tariff Cap) Citizens Advice Chief site MoneySuperMarket
million people stuck on the Bill will put in place a Executive Gillian Guy said: said its survey of 2,000
most expensive tariffs, a requirement on Ofgem “The energy price cap will households found that just
consumer group has said. to cap standard variable make a real difference to 21 per cent of bill-payers
Regulator Ofgem is and default energy tariffs people’s lives. Capping believed the cap would
set to be handed new until at least 2020. It is prices for the 12 million save them money.
statutory powers – dubbed hoped a cap will tackle the people stuck on standard MoneySuperMarket
a “nuclear deterrent” – to amount consumers have variable tariffs will stop Energy Spokesman Stephen
been overpaying the Big Six firms overcharging Murray said: “What initial
Citizens Advice Chief energy suppliers, which the customers who don’t or reduction in bills the cap
Executive Gillian Guy Competition and Markets can’t switch supplier. will bring, if any, is anyone’s
Authority has put at £1.4 “Loyal customers have paid guess, but it’s becoming very
billion a year. over the odds for too long. clear that households who
The bill enables the The passage of this bill should have waited for this help will
temporary price cap to mean the cap is in place for still be paying amongst the
remain in place until 2023 if winter, giving much-needed highest bills in the UK, and
conditions for effective market protection to households let’s not forget the regulator
competition are not met. across Great Britain. will re-set the cap every six
The new legislation “While the cap is a months, so it can go up as
should begin operating significant step towards well as down.” ■

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News.indd 4 14/08/2018 20:00