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Energy companies' actions bear close scrutiny as prices and profits rise



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Published Date: 09 July 2008
Duncan Sedgwick is effusive in his praise of the major energy-supply companies (Platform, 4 July). One could almost believe that these companies were altruistic in their motives and actions.
Mr Sedgwick makes a detailed justification for the increased prices charged to consumers but conveniently omits to mention that over the same time period, these major energy suppliers have been making massive profits. He maintains that UK consumers b
enefit from "effective competition", but it could be argued that the major companies act like a cartel when raising prices. Also, it is not always so easy for the most vulnerable people in society to chop and change energy suppliers. A recent Uswitch report (Sunday Times, 25 May) suggests that many customers are deterred from switching suppliers because they are being asked for large one-off payments before they can move. In addition, the report indicates that it is often the fault of the utility companies themselves that customers are allowed to accumulate large debts.

Rather than accept Mr Sedgwick's anodyne interpretation, I would ask whether the major energy suppliers are, in fact, exploiting the British public at a time of serious economic difficulty.

JOHN WRENCH
Bonaly Terrace
Edinburgh


Despite attracting most of our attention, electricity is only a small fraction of final energy use and Bruce Skivington (Letters, 8 July) is absolutely right about the need for liquid transport fuels. If arguments about the flow characteristics of the Pentland Firth are correct then multiple banks of close-packed turbines could often supply far more electricity than Scotland could use on the coldest, darkest day of the year. The best thing to do with the surplus would be to electrolyse water and use the hydrogen and oxygen in a version of the Fischer-Tropsch process.

This was developed in Germany in the 1920s and used heavily in 1944 after Germany lost control of Romanian oil fields. The South Africans developed it as the SASOL process as a defence against oil sanctions during the apartheid era. In both countries, the energy and carbon components were provided by coal and so would not be popular today.

However, with hydrogen and oxygen from renewable sources, we could provide the carbon from municipal waste. This would be carbon neutral or, if the waste would otherwise be left to produce methane in landfill, strongly negative with respect to greenhouse gas emissions as well as an increasingly negative cost. The only output is a black vitreous waste which can be used as aggregate in concrete. A pilot plant is already operating in Scotland at Westfield, in Fife, and the process should become increasingly attractive as oil and landfill costs rise.

STEPHEN SALTER
Blackford Road
Edinburgh


Greenpeace and similar organisations have not only slowed progress but have put it back at least 50 years. If we had continued our development of nuclear power in the 1960s, by today all our fossil fuel power stations would have been decommissioned and we wouldn't be littered with useless wind turbines. If we had built an adequate road network, journeys would not take twice as long and therefore would not pollute twice as much as they need do. If we had pressed ahead with research into GM crops, millions would not wake-up each day so hungry – there would also be many more with full stomachs if we hadn't tried to fill our cars with bio-fuel.

Arguably the greatest benefit is that people in the UK would not spend their life with an unjustified feeling of guilt.

BRIAN CHRISTLEY
Bryn Gwyn
Abergele, Conwy




The full article contains 602 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 08 July 2008 8:46 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

Beth Boyle,

NY 09/07/2008 07:11:40
This is a truly disturbing trend here as well.
2

Unimpressed one,

09/07/2008 09:32:48
"Arguably the greatest benefit is that people in the UK would not spend their life with an unjustified feeling of guilt."

Arguably the best option is for the public to see through the scam of all green groups and for ignorant politicians not to pander to their stupid demands.
3

Neil,

Glasgow 09/07/2008 11:36:57
Very good letter from Brian. On the technology he is unarguably right. The reason China, India, Russia, Brazil etc have 10% growth & we don't is not because they are particularly wonderful but because they don't allow the "Green" Luddites to stifle anything new.

We could have that too but not by throwing all our resources into subsidising Professor Salter's fantasy when he knows perfectly well we could get unlimited reliable, continuous electricty at a fraction of the price (even if his scheme worked which is highly questionable & before the lights go out in Britain which is certainly impossibel).
4

James F,

East Ayr 09/07/2008 11:58:40
Brian Christley is a wee bit confused and he seems to have led Neil into a similar state of confusion - poor people in China, Russia etc are crying out for the kind of protection from corporate greed which we take for granted.

Greenpeace and similar groups are essential voices against the madness of corporate self-interest. Nuclear power is being phased out in Scotland and those of us with the safety interests of future generations at heart will welcome this decision by the Scottish Government. We have the richest renewable power sources in Europe and it's about time we started using them effectively; the repeated false promises of clean nuclear power (and successive UK governments' desire to sit with the big boys on a world stage) have set us on the wrong energy path since WW2.

The roads are fine. If you want to reduce pollution from traffic (and make any kind of progress at rush hour), use a motor bike - a 125cc machine will give 95mpg, an electric machine can be powered by clean wind farm electricity.

GM crops are a Pandora's Box of tricks. These crops typically promise a 30 - 40% improvement on non-GM but this is a very poor deal compared with switching to foods from non-animal sources. Livestock waste 90% of the food they eat on their own metabolic needs. They give us no nutrient which cannot be more successfully sourced from plant foods. Switching to non-animal food sources releases 700% more food for human consumers (a twenty-fold improvement on GM promises).

Clearly, we have no need to consider GM crops for human consumption until we have rationalised the existing food supply chain by removing animals and animal products.

Professors Trewavas and Russell (of Edinburgh University and St. Andrew’s University respectively) are renowned advocates of GM foods. In October of last year, both in these columns and in private memoranda, I challenged them to respond to these figures. They were unable to do so at that time, for whatever reason.
5

Unimpressed one,

09/07/2008 12:37:31
#4, Typical response from a vegetarian green luddite. Greenpees, an organisation which has been disowned by its founder, is a cancer on the planet like most anti-development pressure groups. I dare say that China and India will eventually spout there own version of these misguided parasitic organisations when their societies reach a level of development which allows people to think beyond mere survival. However until then, they will reap the benefits of high growth while our guilt-ridden, post industrial societies fade into obscurity.
6

Darien,

Panama 09/07/2008 12:43:58
Oil surge brings UK tax bonanza
Exchequer said to have doubled North Sea revenues since 2007
From Lloyds List - Wednesday 9 July 2008

WITH oil prices hovering around $140 per barrel, the UK government is set to haul in double the amount of North Sea taxes compared with a year ago, offsetting expected reductions from the predicted economic downturn.

The latest estimates from the UK’s hydrocarbon industry show the Treasury will be collecting more than £15bn ($29.6bn) in oil and gas production receipts and another £6bn of taxes from the growing supply chain.

Sky-high oil prices may be causing economic problems for major hydrocarbon consumers, but for the UK higher government revenues from North Sea activities are helping to reduce the burden on Chancellor of the Exchequer Alistair Darling and Prime Minister Gordon Brown.

“In 2007, the government gained £8bn in oil and gas taxes. In the latest budget, the chancellor said tax receipts would be £10bn, but as the price has risen tax returns will climb to £15bn — double those of a year ago,” said Oil & Gas UK chief executive Malcolm Webb.

The organisation’s economics director Mike Tholen said: “The supply chain’s turnover has grown by 23% and UK exports from the oil and gas sector have risen to £5bn. The supply chain will contribute £5bn-£6bn to the Exchequer in 2008.”

Strong oil prices are boosting investment in the UK North Sea, with around £5bn expected to be spent on capital projects, £6bn of operating expenditure and more than £1bn on exploration and appraisal activities.

These are similar levels to the £12bn spent overall in the UK North Sea in each of the last two years but higher than the £9bn spent in 2005.

Oil & Gas UK forecast that total expenditure will remain above £10bn per annum for the next four years, as more than 170 projects are undertaken and offshore infrastructure is upgraded.

“Oil and gas companies plan to invest £21bn in capital projects in the next five years, targeting
7

James F,

East Ayr 09/07/2008 13:09:31
#5 Thank you for these kind words. I always eat my pees green.
You said "China and India will eventually spout there own version of these misguided parasitic organisations when their societies reach a level of development which allows people to think beyond mere survival". So it's a bad thing to think beyond mere survival? Don't think so.
You may feel guilty; I don't. Simple solution? Accept the reality of the points I made in #4. Buy shares in a wind turbine development, buy a bike and go vegan.
8

Neil,

Glasgow 09/07/2008 13:39:09
James said
"poor people in China, Russia etc are crying out for the kind of protection from corporate greed which we take for granted"

Such baseless assertion is the stock in trade of the eco-fascists. While not wishing to dispute that the claim that the peoples of of India & China begging for their poverty back represents the very highest standard of honesty of which James & anybody in the eco-fascist movement aspires it is clearly a total 100% deliberate lie which could not be maintained by any movement in any way honest.
9

Itchy,

Lochgelly 09/07/2008 15:13:25
#4 "poor people in China, Russia etc are crying out for the kind of protection from corporate greed which we take for granted."

Who is going to protect us from state greed? That is the problem, not corporate greed. This quote indicates your inherent Marxism.

BTW it's not as if Russia and China have a long history of capitalism.
10

James F,

East Ayr 09/07/2008 15:17:04
Hi Neil, I seem to remember we agreed on something last week. I knew it wouldn't last.
I take it you don't keep up to date with current affairs: earthquake in China - parents of children who died in an ill-constructed school which buried their children are arrested for protesting; Chernobyl - thousands still dying early and others suffering from sub-lethal effects of radiation.
I don't imagine the people of China or Russia want a return to poverty (you said that, not me) but you must realise that in these countries the poor are still poor - in some cases poorer than before their current boom. Economic progress must be accompanied by social progress.
I'm not saying your comments are typical of the nucleo-commies. I'll leave that for others to judge.
11

James F,

: East Ayr 09/07/2008 15:23:32
#8 Neil and #9 Itchy: could you guys get your act together? Neil says I'm an "eco-fascist" (in fairness, I think he made that one up), Itchy has me as a Marxist. Probably I must be a member of the middle-of-the-road Lib-Dem/Tory/SNP/Labour/SSP/chirpy chirpy cheep cheep party. Oh well. Where'd your mama go? (where'd your mama go?)
12

Neil,

Glasgow 09/07/2008 17:10:56
James F gives us his word that in

"Chernobyl - thousands still dying early and others suffering from sub-lethal effects of radiation2

This, while undoubtedly representing the very highest standard of honesty to which the eco-fascists aspire, is a complete & deliberate lie The total death toll from Chernobyl is about 50 - which is as to be expected bearing in mind that these parasites said it would be 500,000.

As regards #11 are you seriously suggesting that, insofar as "left" & "right" have any meaning fascism is not a left wing movement. If so it would obviously require some stronger evidence than your word.

You may be interested to know that Itchy & I do not get together to sort out our party line. This is, according to taste, one of the strengths or weaknesses of not embracing fascism (eco or otherwise).
13

James F,

East Ayr 09/07/2008 19:55:33
Neil, you don't still believe the UKAEA propaganda on Chernobyl for goodness sake?
Read some of the UN literature on the subject and stop being such a nucleo-commie.
14

Itchy,

09/07/2008 20:27:58
"Neil says I'm an "eco-fascist" (in fairness, I think he made that one up), Itchy has me as a Marxist"

They do not differ in principle. Note the similarity between the National Socialist Workers Party and the Union of Soviet Socialist Republics.
15

James F,

East Ayr 10/07/2008 02:00:18
#14 Itchy: I think they differ in principle, but not in effect. You're quite right, a left wing numpty is every bit as dangerous as a right wing numpty.

 

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