The UK’s first Energy Saving Day has ended with no noticeable reduction in the country’s electricity usage. E-Day asked people to switch off electrical devices they did not need over a period of 24 hours, with the National Grid monitoring consumption. It found that electricity usage was almost exactly what would have been expected without E-Day. Colder weather than forecast in some regions may have led to higher use of heating, masking any small savings. The event also received very little publicity, despite having backing from campaign groups such as Greenpeace, Christian Aid and the RSPB, and from major energy companies such as EDF, E.On and Scottish Power.  “I am afraid that E-Day did not achieve the scale of public awareness or participation needed to have a measurable effect,” said E-Day’s organiser Dr Matt Prescott in a message on his website. The Grid’s final figures showed national electricity consumption for the 24 hours (from 1800 Wednesday to 1800 Thursday) was 0.1% above the “business-as-usual” projection. The E-Day concept started life as Planet Relief, an awareness-raising BBC TV programme with a significant comedy element. But in September the BBC decided to pull the project, saying viewers preferred factual or documentary programmes about climate change. The decision came after poor audiences for Live Earth, and public debate over whether it was the corporation’s role to “save the planet”. Dr Prescott then decided to see whether he could mount E-Day as an independent operation, and secured the backing of important partners such as the National Grid and the UK’s major energy companies. They are obliged by the government to offer customers ways of improving energy effiency, and some used E-Day to contact people interested in loft and wall insulation. The event was launched on the steps of St Paul’s Cathedral in central London by Dr Richard Chartres, the Bishop of London, who described climate change as a “moral issue”. “Let us remember people in the Ganges delta who are already feeling the effects of sea level rise and climate change,” he said. “The science changes year by year - though rarely in the right direction - but the moral imperative remains the same.” Dr Prescott had hoped E-Day might bring a small but measurable reduction in electricity use, perhaps in the order of 2-3%, equivalent to the output of one or two fossil fuel fired power stations. The idea was to demonstrate that numerous small personal actions could make a dent in greenhouse gas emissions. But, he acknowledged on his website: “E-Day did not succeed in cutting the UK’s electricity demand. “The drop in temperature between Wednesay 27 February and Thursday 28 February probably caused this, as a result of more lights and heating being left on than were originally predicted.” “I will do my best to learn the relevant lessons for next time.”

Fire crews have put out a major blaze at one of the largest gas terminals in the UK, after an explosion. The fire broke out in a water treatment plant at the Shell UK base on Paston Road at Bacton in North Norfolk. Shell UK said all personnel had been accounted for and an emergency centre was set up at Shell HQ in Aberdeen. Emergency services were still on site in the late evening and Norfolk Fire Service said 10 crews dealt with what they described as “a major incident”. The terminal, operated by several energy companies, houses gas processing plants and the Interconnector system feeding gas between Britain and Europe. The Norfolk Fire Service spokeswoman said it did not believe any chemicals were involved but it had set up a foam monitoring system. The Nation Grid said there had been no threat to the UK’s gas supply. Anna Hollis, from a nearby holiday park, said: “Just after the fire broke out we could see flames and smoke shooting up into the air and the alarm was going off very loudly. “It was really alarming. We could see the fire was right in the centre of the terminal and there were helicopters flying all around. “All we can see now is billowing black smoke.” Norfolk Fire Service received the emergency call at 1745 GMT. John Ellis, emergency planning officer at the terminal, said fire crews were now at the Shell site. He said he believed there had been an explosion related to a fire. Patricia Myles, whose garden overlooks the terminal’s site, said: “First we heard a bang and then I came out of the back and I walked along the track and all I could see was black smoke. Once I got to the end of the lane there were flames shooting up 10ft or 20ft, maybe more, in the air and within about five or six minutes the flames went down and there was just a lot of black smoke. “But there was a lot of activity going on, with sirens and everyone running about there.”

Oil vaulted more than 3% a barrel on Thursday to an all-time peak near $103, eclipsing the previous inflation-adjusted high set 28 years ago, after a fire hit a major European natural gas terminal.  The surge could add pressure on oil cartel OPEC to boost production when it meets in Vienna next week, though members have said they see no shortage of supply in the world market and are unlikely to raise output. U.S. crude surged $2.95 to settle at $102.59 a barrel after hitting $102.97, shattering the inflation-adjusted high of $102.53 reached in 1980, a year after the Iranian revolution. London Brent crude gained $2.63 at $100.90 a barrel after the European benchmark hit a record $101.24. “Speculators own this market, and they are pushing it up as they see fit,” said Stephen Schork, editor of energy newsletter the Schork Report. The gains come amid a broad-based commodities rally fueled in part by expectations the U.S. Federal Reserve will continue to aggressively cut interest rates to battle an economic slowdown in the world’s biggest energy consumer, speeding up the rate of inflation. “The energy complex is a dollar/inflation story as investors have moved into commodities as a hedge against inflation,” said Nauman Barakat, senior vice president at Macquarie Futures USA.

Today marks a new awareness initiative to reduce electricity waste by turning off unused technology, while organisers and environmental bodies call for more smart metering to show the real-time cost of energy use. Users need to be able to read their gas and electricity use in real time, and more importantly, in real money.  A new generation of smart metering technology will allow users to monitor their energy consumption via handheld readers, their TV screens and via the web to see exactly how much they’re paying to leave the light on all day or the computer monitor running all night. Smart metering is being pushed by the Energy Retail Association, and comes after a YouGov survey revealed that 73 per cent of adults in Britain want to decrease their carbon footprint by cutting energy consumption. In an effort to jumpstart personal energy consumption reductions, today has been declared “E-Day” and people across the UK are being urged to turn off all their unused devices for the day. Matt Prescott, the organiser of E-Day, welcomed efforts by the ERA to make users more aware of their energy consumption. “I hope that it will not be long before everyone can make much more informed decisions in relation to their energy use,” he said. If the ERA has its way, the government will soon provide a legal framework to make smart meters available for use in 45 million households across the country. “It is only with a clear mandate that we can deliver this huge project in the most cost effective and efficient way,” Duncan Sedgwick, chief executive of the ERA added. Talks of distributing smart meters across the country come only days after the power supply company National Grid was fined £41.6 million for operating restrictive practices that were deemed to be holding back deployment of smart metering technology by penalising energy providers for replacing meters. Energy regulator Ofgem ordered the fine after determining National Grid to be using anticompetitive practices in the domestic gas meter market. “The abuse has prevented suppliers from contracting with other companies for cheaper metering deals and could discourage suppliers from installing smart meters,” Sir John Mogg, Ofgem’s chairman said. Ofgem believes the company has slowed innovation in the domestic metering market by “severely” restricting how suppliers can replace National Grid’s older meters. Long-term contracts have prevented consumers from accessing newer, cheaper meters from National Grid’s competitors.

Power distribution company National Grid is to challenge the multi-million pound fine issued by energy regulator Ofgem, which claimed the company’s restrictive contracts were holding back developments in the energy metering market. Ofgem imposed the fine after nearly three years of analysis led to the conclusion that National Grid was in “serious” breach of competition laws. By entering into restrictive long-term contracts with five of the nation’s six largest energy suppliers, National Grid is alleged to be preventing those companies from replacing outdated and manual gas meters with more modern and potentially cheaper ’smart’ meters from rival meter suppliers. Smart meters can give consumers a better understanding of their energy consumption. For example, some meters provide a portable display device that gives users their real-time energy consumption rates both in terms of energy used and the cash value it is costing them. Smart meters are capable of transmitting users’ consumption rates wirelessly back to the energy provider. This allows for more accurate billing and reduces the need for physical meter reading by power company staff. Financial penalties in the contracts deter energy providers from buying cheaper, more advanced meters from other providers, and from replacing more than a small number of the National Grid-managed meters, Ofgem determined. Executives at National Grid were quick to refute Ofgem’s claims, insisting that their contracts were well-negotiated and completely sound. “We strongly believe we have never acted anti-competitively in the development of our contracts,” said Steve Holliday, chief executive of National Grid. “National Grid has been instrumental in helping Ofgem to develop competition in the UK.” Ofgem begs to differ, however, alleging that National Grid’s control of the metering market has harmed customers and slowed growth in the industry. “The abuse has prevented suppliers from contracting with other companies for cheaper metering deals and could discourage suppliers from installing smart meters,” Sir John Mogg, chairman of Ofgem said. By showing consumers what they are paying to use (or waste) energy, smart meters could significantly decrease unnecessary consumption. The more readily they are available to consumers, obviously, the greater their impact could be.

Energy giant npower has revealed a 41% increase in profits only weeks after it hit millions of households with price increases. The German-owned company pushed up gas and electricity bills by as much as 27.1 per cent last month. At the same time the firm has been disconnecting as many as 69 customers per week over arrears - more than any other company. Yesterday npower said its profits last year surged to £544million. The haul came from charges to 6.8million homes and from selling electricity generated at the firm’s nine UK power stations. The news came a day after British Gas declared profits of £570million for last year, an astonishing 501 per cent increase on 2006. The other major suppliers, German-owned Eon, EDF, of France, Scottish Power, in Spanish hands, and Scottish & Southern Energy also made big profits last year. There are fears that monopoly firms in Europe are rationing supplies to the UK in order to force up prices and profits. The claims have prompted an inquiry into the UK energy market by the industry regulator, Ofgem. MPs have also announced an inquiry amid fears that up to four million Britons are having to choose between heating and eating. Charities-such as Help the Aged have warned older people might die for fear of turning on their heating this winter. Age Concern said suppliers should be made to offer their lowest social tariffs to vulnerable households by law. Ofgem has named and shamed npower over its failure to find ways to help customers who are in need with their bills. It cut off 69 homes a week during the first nine months of last year - a 418 per cent rise in two years. A spokesman for consumer group Energywatch, Adam Scorer, said: “Npower has the worst record when it comes to helping consumers in debt and the worst record on disconnections.” Npower claimed it needs last year’s profits boost to invest in new UK power stations, including a new £600million gas-powered plant at Staythorpe in Nottinghamshire. A spokesman said: “Older power stations are closing and we need to invest in new stations to guarantee power supplies. Our new power station at Staythorpe will cost more than our entire UK profit in 2007.” Npower insisted that it only cuts off people who won’t pay. The company made clear it has no intention of changing its ways.

UK gas prices at the National Balancing Point were higher Monday on the back of problems on the Norwegian Continental Shelf and colder than expected weather, traders said. Within-day was up over a penny from Friday’s close for Monday gas, at 51.9 p/therm by midday, and day-head was at 51.5 p/th. National Grid data showed demand at 358 million cubic meters/day at 11am, 16 million cu m/d above seasonal norms and a step up from Friday’s level.  One trader said he had expected demand of around 330 million cu m/d Monday, and that several people had been caught out by temperatures being colder than forecast.  But the market was perhaps more concerned by news of reduced flows from
two major Norwegian oil and gas fields over the weekend. Production from StatoilHydro’s Kristin and Asgard fields was reduced Saturday afternoon, the operator said, as a result of bad weather. But both fields were being prepared for a restart Monday, a spokesman for the company said.

Norwegian gas flows into the UK Monday were a touch below the previous week’s levels. Flows through the Langeled pipeline were at 40 million cu m/d Sunday, but had recovered somewhat to about 57 million cu m/d Monday. In the previous week flows were at or above 60 million cu m/d.
 

The energy regulator, Ofgem, has launched an investigation into the electricity and gas markets for households and small businesses. There has been concern about whether the market is working effectively. Consumer groups and unions have criticised British Gas owner Centrica for announcing large increases in profits after putting up bills. Ofgem says it currently has no evidence of anti-competitive behaviour but is responding to customer worries. “The decision to conduct the probe is in response to public concern about whether the market is working effectively,” Ofgem chief executive Alistair Buchanan said. We hope it will shed light on how the energy market fails consumers and what can be done to fix it.  “We are concerned about the increased volatility of wholesale prices and we want to investigate how European and other global energy market developments are affecting energy bills in Britain,” he added. If Ofgem finds problems it could refer the matter to the Competition Commission for further investigation. 

“Consumer concerns have demanded this sort of response. We hope it will shed light on how the energy market fails consumers and what can be done to fix it,” Adam Scorer, Director of Campaigns at Energywatch said.  There have been 15 inquiries into the energy market in the last 7 years and each of them has given the industry a clean bill of health.  It is concerned that the reduction in the number of suppliers from 20 to six has reduced competition.

Four countries, four cities and five corporations have signed up to go carbon neutral, in an effort to combat climate change and help to de-carbonize the global economy. They are the first to join the Climate Neutral Network (CN Net), launched in Monaco today by the UN Environment Programme (UNEP). The Network is a web-based project, that is planning to federate the small but growing wave of nations, local authorities and companies who are pledging to significantly reduce emissions en route to zero emission status.  Over the coming months, more and more organisations, and eventually individuals, will be invited to take part. The aim is a global information exchange network open to all sectors of society from Presidents and Princes to people from Pittsburg, to Sao Paulo.  Achim Steiner, UNEP Executive Director, said today: “Climate neutrality is an idea whose time has come, driven by the urgent need to address climate change but also the abundant economic opportunities emerging for those willing to embrace a transition to a Green Economy”.

The first four countries to partner are Costa Rica, Iceland, New Zealand and Norway.

Britain’s retail energy suppliers are at loggerheads with the industry regulator Ofgem over the best way to introduce “smart meters” to every home in Britain. Ofgem is pressing for all-out competition for the work to install and monitor an estimated 45m meters over the next decade. In contrast, the Energy Retail Association (ERA) would like to see the work awarded through a series of regional franchises, where meter installers would bid to fit all the meters in a particular area, irrespective of the energy supplier. The government is keen to see the introduction of smart meters as part of its drive to reduce energy consumption. Smart meters, which can be read remotely, enable energy companies and customers to monitor how much gas and electricity is being used, putting an end to estimated bills. They allow customers to choose flexible tariffs and make it easier to sell electricity produced by microgeneration back to suppliers. The ERA argues that its system would provide competition both for the award of regional franchises and for the supply of meters within each franchise. Ofgem is worried the regional franchise system will not provide sufficient competition. “Industry proposals for smart metering would effectively stitch up customers, making sure they have to bear all the costs and all the risks of introducing smart metering,” an Ofgem spokesman said. “Ofgem believes that suppliers should just go ahead and introduce smart meters and not pursue an arrangement which would remove all the competitive pressure on them to keep costs to a minimum for customers.” The ERA has looked at a number of options for introduction but believes the franchise model is the best available. Duncan Sedgwick, chief executive, said: “Replacing the 45m gas and electricity meters across Great Britain is an enormous undertaking, involving visits to every home in the country. The ERA has looked into the various methods of delivering smart meters and considers regional franchises to be the best framework for the rollout. However, the government may have received other proposals which could be of equal merit. “At present, the ERA’s members consider that this model would allow for the best planning, which would in turn minimise uncertainty, inconvenience and costs for consumers. “The exact model for the administration of regional franchises would require further detailed discussions with all key stakeholders, including other suppliers, government and the regulator.” The ERA is keen for the government to give a clear mandate to press ahead with smart meters when it provides its response to its consultation on billing and metering. The government is expected to publish its views in the coming weeks, though it is not clear if it will use that opportunity to settle the row between Ofgem and the energy companies.