We awoke yesterday morning to some expected good news which is that the price cap on energy prices is expected to fall by about 7% in April. Chancellor Rachel Reeves said in November that £150 would be cut from the average household bill from April by scrapping the Energy Company Obligation scheme. The reduction is expected to be primarily applied through a lower price per unit of electricity used, with households advised to look out for information from their supplier explaining this after the price cap announcement. That having been said, UK energy prices have been some of the highest in Europe. UK electricity prices for households and businesses are among the highest in Europe and the world, frequently ranking alongside Germany and Ireland as the most expensive in the region. While domestic gas prices are lower than the EU average, high electricity prices are driven by heavy reliance on natural gas for power generation, creating a significantly high electricity-to-gas price The commercial sector have often complained to government that high energy costs are one of the most significant burdens which they have to bear, particularly when they are in competition with other European countries. The reason for high electricity prices is due to the way in which the energy market works. Electricity markets work by selecting the cheapest sources first (renewables, nuclear). When demand is high, or renewables are low (e.g., no wind), gas power plants are turned on to fill the gap. Because they are the most expensive, they set the price for the entire market to ensure all providers are compensated. Despite the growth of renewables, natural gas is still a major component of the energy mix, meaning price spikes in the gas market immediately impact electricity generation costs. What I am unsure about is whether the whole of the European market works in this way. But one point of comparison is the fact that the UK as a much lower storage capacity than Germany which has significantly higher natural gas storage capacity than the UK, with roughly 89 days of supply compared to the UK’s 12 days. Germany possesses the largest storage in the EU (around 220–260 TWh), while the UK’s capacity is roughly 90–96% lower, having lost 70% of its capacity with the 2017 closure of the Rough facility. This means that at critical points in the winter (i.e. when the weather is at its coldest and energy costs are at their highest) that the UK has to energy the ‘spot’ market to buy extra increments of energy and these prices are always much higher. The UK does have the possibility of using depleted gas and oil fields as long term storage but here I suspect that under short term pressures the UK has sold off some of the ‘family silver’ leaving long term supplies to us more vulnerable than in the case of Germany. In any event, now that we are nearly into March, and we are enjoying a spell of milder weather due to a ‘wiggle’ in the jet stream, thee is a feeling that the worst of the winter is behind us and we have both lower energy prices and the uprating of pensions to which to look forward in early April.
The principal event of today was a social engagement with an old school friend who is now living in the Birmingham area and who has made contact. We decided to meet in Webbs in Droitwich in a home and garden centre with a huge cafeteria in which it is easy to find a quiet corner in which to have an extended chat. We met at 11.00am and carried on chatting for over three hours as we had a lot of history between us to catch up on. We have had this meeting arranged for several weeks now and it was a relief that nothing had happened to get in the way of it happening. So having brought each other op-to-date over what had been happening in our respective lives, we will probably meet again in a month or so. We have learnt today that fairly draconian new rules are being applied to British dual nationals. Those who do not have a British passport could be stopped from entering the UK under new government rules coming into force from today. They will no longer be able to enter the UK using only a foreign passport, as the government starts enforcing its Electronic Travel Authorisation (ETA) scheme. ETAs are part of what the government says will be a ‘more streamlined, digital immigration system’ that it hopes will mean quicker entry into the UK, reducing queues at the border. It also says the system will be more secure, and prevent people who shouldn’t be entering the UK from doing so. To board a flight, they must present a valid British passport or a Certificate of Entitlement – which costs £589 – or risk being denied boarding. Whether all of this is a hangover from Brexit or something else is hard to say. It is the case that the new Electronic Travel Authorisation (ETA) scheme is being rolled across Europe and I have a feeling that it may disproportionately hit visitors to the UK as meany people have family members working or living outside the UK. The UK’s Electronic Travel Authorisation (ETA) scheme, becoming mandatory for all non-visa nationals by April 2025, applies to visitors from over 85 countries, including the EU, US, and Australia, to enhance border security. While not solely targeting the UK, it creates a new administrative burden, £10 fee, and potential travel disruption for millions of visitors. I suspect that the days of fairly unrestricted travel across national borders is coming to an abrupt end as there are moves to tighten up on borders in which ever direction one looks.
I still follow the liberal American news media on podcasts that are shown on YouTube. Some of the latest videos of the activities of the American’s ICE (Immigration and Customs Enforcement) are shocking in the extreme. Masked and heavily armed agents without any warrants or legal justification are breaking down doors and arresting people completely at will. They have been accurately described as a de facto private military force and the methods deployed are completely reminiscent of fascist regimes across the globe. Congressional hearings have revealed that ICE agents have been specifically instructed to ignore provisions of the American constitution against arbitrary arrest and imprisonment and it appears that this para-military force is now running amok through many American cities. It is no wonder that Presidents Trump’s ratings have hit an all-time low but how many of these evident transgressions of American law and constitution are brought to the attention of the American public in the light of a subdued Main Street Media is an interesting question.