You can blame the European power giants for sky-high bills

Foreign power firms are buying cheap North Sea gas from Britain in the summer and putting it into vast storage facilities on the Continent.

They then refuse to pipe it back to the UK when it is needed in the winter, effectively rationing supplies and pushing up prices.

The UK is vulnerable to these strong-arm tactics because we have such tiny gas holding facilities that we cannot store cheap North Sea gas in the summer for use in the winter.

There is enough storage to supply the country with gas for only 13 days, compared with 99 days in Germany and 122 in France.

Yesterday large-scale gas users warned the Commons Business and Enterprise Select Committee, which is investigating the reasons behind the price rises, that Britain's energy needs were at the mercy of foreign suppliers.

Jeremy Nicholson of the Energy Intensive Users Group told the MPs that foreign energy companies are failing to sell gas to the UK when we need it.

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Plans for huge rise in wind farms

Plans for a massive increase in offshore wind power are set to be announced by the government.

The new turbines could more than treble the amount of power already generated by wind power.

The British Wind Energy Association (BWEA) told the BBC it hoped about 7,000 new turbines would be built around Britain's coastline by 2020.

Offshore wind farms have come under fire for spoiling the landscape and over the rising cost of making them.

British Gas parent firm Centrica, one of the UK's biggest energy generators, has warned that the opportunities of making money from them look slim and that the rising costs of making the turbines could end up ruining the government's renewable energy targets.

Royal Dutch Shell recently withdrew from a project that was set to become the world's largest wind farm in favour of investing in renewable energy in the US.

The BWEA said the planned expansion of UK wind farms would generate enough electricity to supply all UK households.

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OECD boss hails high oil prices

The soaring cost of oil is welcome as it sends a clear signal to consumers and firms to curb their use of fuel, the head of the OECD has said.

Speaking at the annual meeting of the world's richest nations, Angel Gurria said it would be "disastrous" if they cut fuel taxes or subsidised prices.

"The best solution to high oil prices is high prices" to cut demand, he said.

OECD members are trying to agree plans to tackle climate change and lessen the effects of the world financial crisis.

Time is running out to negotiate a new post-Kyoto treaty on climate change.

'Key challenge'

The Organisation for Economic Co-operation and Development's annual meeting comes as the world is facing a sharply slowing economy and soaring oil prices, which recently rose above $135 a barrel.

The OECD is uniting business, pressure groups and governments in an effort to find common ground on how to cut greenhouse gas emissions and slow global warming.

The meeting will examine the feasibility of increasing nuclear energy and bio fuels to meet growing energy needs.

And it will look at the role companies can play in encouraging clean technology.

But Mr Gurria's comments on the cost of oil will prove controversial at a time when the UK government among others is under growing political pressure to drop plans to tax the most-polluting cars more heavily.

By Steve Schifferes
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Push for sustainable energy from householders

As many as 9m microgeneration units such as solar panels and wind turbines could be in place within 12 years if the Government provides the financial and legal support.
They could produce as much energy as five large new nuclear power stations and by 2030 would be saving as much carbon as if all HGVs and buses were taken off the road.

The independent report, prepared for the Government, is claimed to be the largest piece of independent consumer research ever conducted into the market potential of microgeneration.

Its publication led to calls for the Government to bring forward strong policy measures underpinned by legally binding Government targets to encourage people to switch to mass-produced sustainable energy schemes.

Currently there are about 100,000 home energy installations but this could increase to 9m by 2020 if consumers are given a financial incentive and the confidence to make the switch.
Legally binding Government targets for microgeneration, backed up by concrete policy measures, would also encourage investment in the market, the report says.

Small-scale energy units would include solar panels, wind turbines, combined heat and power boilers, and ground and air source pumps.

It says take-up could be boosted by so called feed-in tariffs - allowing householders to sell any electricity they do not need in their own home to the big energy companies at a fixed price.
By Paul Eccleston

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