Industry sources are warning that the energy sector needs to know the details of the new Prime Ministers’ plans to support businesses in order for them to take effect during the next winter. The government has indicated that a more complete plan for businesses will be announced as soon as possible. In another development, Centrica chief executive officer, Chris O’Shea, voiced support for using contracts for difference for long-term electricity prices as part of efforts to ensure lower prices for consumers over the years ahead. – The Sunday Telegraph
France’s EdF is in talk with ministers regarding a voluntary limit on prices for its electricity. Ministers have promised that they will break the long-standing link between the price of low-cost energy, including that generated by wind and nuclear power, and that for natural gas, which has surged in the wake of the Russian invasion of Ukraine. EdF runs the UK’s five remaining nuclear plants. Nonetheless, EdF’s managing director, Matt Sykes, said EdF’s output for the year ahead had already been sold at much lower prices than the going rate for gas. That, he explained, meant that the company had not benefitted from high, short-term prices. – Sunday Times
Fracking, the process by which shale gas is extracted, may overtake production from the North Sea within the next 15 years after the new Prime Minister lifted a controversial ban. According to data from National Grid, fracking’s contribution to meeting the country’s energy needs may match that of the North Sea by 2037 and then go on to surpass it during the following year. And Liz Truss has claimed that fracking may start making a contribution within six months, meaning that its peak production may be reached far sooner. – Financial Mail on Sunday
