'Far more' UK shale gas resources
By Anonymous on Jun 27, 2013 03:06 am 26 June 2013 Last updated at 19:10 ET 
Generating capacity is falling, says Ofgem, and the risks of the lights going out is rising
The energy regulator is expected to warn later that the risks of power blackouts has increased.
In an updated assessment of the UK's electricity market, Ofgem will say that excess capacity has fallen.
It will heighten consumer groups' concerns that people could face higher energy bills in the coming years.
Ofgem has twice warned in recent months that the amount of spare power is shrinking, partly due to some gas generators being taken out of service.
Centrica has already withdrawn two of its gas plants from operation.
Plants mothballed In April, SSE confirmed that it too would mothball gas plants and put off investments in new ones.
Many of the UK's gas plants are said to be operating at a loss, hit by falling power prices compared with the cost of gas.
Another factor that has crimped supply in recent months is European Union environmental legislation.
That saw around 10% of the UK's power capacity shut down in April.
Last October, Ofgem warned that the margin between the available electricity supply and demand could fall to as low as 4% by the middle of the decade.
Then in February, Alistair Buchanan, the chief executive of Ofgem, told the BBC that the situation had worsened, saying that "within three years it is going to get very tight".
The government's plan to ensure the lights stay on includes "capacity payments".
Capacity payments are designed to incentivise the building of new plants by guaranteeing investors take an agreed amount of electricity for an agreed price.
But the government has already come under fire over capacity payments from one of the big six suppliers.
"Government proposals for a capacity mechanism must pass the simple test of whether it keeps the lights on at the lowest cost to consumers," said Paul Masarra, the chief executive of Npower.
He added: "For me, that means a mechanism that treats all power plants in the same way, but that's not what the current proposals suggest."
'Higher prices' Npower wants the mechanism to extend to recently built power plants as well as proposed new installations.
But the plans worry consumer groups who fear they will result in higher household energy bills.
Adam Scorer, of the lobby group Consumer Futures, said: "Projections of ever-tighter capacity margins understandably raise fears of higher electricity prices.
"Government and regulator need to agree on the most realistic capacity scenarios, the least-cost ways of reducing demand and, where necessary, of incentivising new generation capacity."
More details of how these will work are expected later as part of a wider series of announcements by Energy Secretary Ed Davey, which will include publication of the British Geological Survey's report on shale resource in the north of England and the community benefits being offered for those who allow fracking locally.
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Energy and roads get share of £100bn
By Anonymous on Jun 27, 2013 03:22 am 26 June 2013 Last updated at 20:54 ET 
Road improvements are expected to feature prominently in the government's plans
Energy and transport schemes are expected to benefit as the government reveals how £100bn will be spent on infrastructure projects across the UK.
Nuclear and new sources of energy are expected to be a big part of a raft of projects for 2015-20 detailed later.
But it is unclear how soon projects will start construction and Labour says investment is needed much quicker.
The details follow Tuesday's Spending Review, in which £11.5bn of cuts to Whitehall departments were announced.
Chancellor George Osborne said on Tuesday the £100bn for 2015-2020 would "raise our national game" and promote growth. Chief Secretary to the Treasury Danny Alexander will unveil the details in the Commons later.
Electricity price The BBC understands the focus will be on energy.
The nuclear sector has long complained of a lack of government backing for new power stations - in particular agreeing a price for the electricity they will produce - so the government will try to show that commitment by promising money for the industry.
The transport plans are expected to focus more on roads than railways.
One scheme thought to have been under consideration is for improvements on the A14, which runs from Catthorpe, in Leicestershire, to Felixstowe, in Suffolk.
Continue reading the main story Spending Review Documents
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Mr Alexander's announcement is also expected to include plans to build schools and for investment in scientific research.
The first £50bn will be committed to infrastructure projects starting in 2015-16 and the rest for 2016-20.
Treasury sources said "a lot of building will start this side of the [2015] election".
Mr Osborne said in his Spending Review statement on Tuesday: "Successive governments of all colours have put short-term pressures over the long-term needs and refused to commit to capital spending plans that match the horizons of a modern economy.
Real-terms fall "Today we change that, from roads to railways, bridges to broadband, science to schools."
The £50bn for 2015-16 represents a real-terms fall of 1.7% from the infrastructure budget for 2014-15.
But the coalition says the figure is still higher than the one Labour was planning when it was ousted from power in 2010.
A lack of consistent economic growth led ministers to make the further cuts of £11.5bn in its 2015/16 Spending Review, as tax receipts have been lower than expected.
In the review, the chancellor announced several measures aimed at saving money, including:
- Millions of public sector workers learning they face losing automatic annual pay increases
- A cap on total welfare spending and axing winter fuel payments for expatriate pensioners in hot countries
- Most unemployed having to visit a JobCentre every week instead of fortnightly
Mr Osborne said the economy was "out of intensive care".
But shadow chancellor Ed Balls said the government had presided over declining living standards and that the deficit had risen in the last year. He called for an immediate £10bn boost to infrastructure spending.
Read in browser » Zuma cancels trip as Mandela worsens
By Anonymous on Jun 27, 2013 02:57 am 26 June 2013 Last updated at 17:38 ET 
Well-wishers have gathered outside the hospital in Pretoria where Mr Mandela is being treated
South African President Jacob Zuma has cancelled a trip to Mozambique on Thursday after visiting former leader Nelson Mandela, 94, who remains critically ill in a Pretoria hospital.
Mr Mandela, South Africa's first black president, has been in hospital since 8 June with a recurring lung infection.
Mr Zuma was briefed by doctors who were doing everything possible to ensure Mr Mandela's well-being, a statement said.
On Tuesday, a cleric prayed for Mr Mandela's "peaceful end".
Also visiting on Tuesday was Mr Mandela's daughter Zindzi, who said her father had "opened his eyes and smiled".
Gratitude Continue reading the main story Nelson Mandela: Key dates
- 1918 Born in the Eastern Cape
- 1944 Joins African National Congress
- 1956 Charged with high treason, but charges dropped
- 1962 Arrested, convicted of sabotage, sentenced to five years in prison
- 1964 Charged again, sentenced to life
- 1990 Freed from prison
- 1993 Wins Nobel Peace Prize
- 1994 Elected first black president
- 1999 Steps down as leader
Mr Zuma was due to attend a regional summit in the Mozambican capital Maputo on Thursday, but decided to cancel his trip.
The statement from his office said he "reiterated his gratitude on behalf of government, to all South Africans who continue to support the Madiba family".
Mr Mandela, known by his clan name Madiba, is revered for leading the fight against white minority rule in South Africa and then preaching reconciliation despite being imprisoned for 27 years.
He was awarded the Nobel Peace Prize in 1993 and was elected president the following year. He left office in 1999 after a single term.
Earlier on Wednesday, Mr Zuma said Mr Mandela's 95th birthday on 18 July would be celebrated with "vigour as it is a life spent in dedication to humanity".
Mr Mandela retired from public life in 2004 and has rarely been seen at official events since.
He has a long history of lung problems, and was diagnosed with tuberculosis in the 1980s while he was a prisoner on Robben Island.
After his release, Mr Mandela said that the tuberculosis was probably caused by dampness in his prison cell.
Read in browser » Queen's income to rise by 5% in 2014
By Anonymous on Jun 26, 2013 07:17 pm 26 June 2013 Last updated at 19:17 ET 
The Crown Estate owns property around Oxford Street and Regent Street in London
The Queen will receive a 5% rise in her income after the Crown Estate, from which she is paid, reported an increase in its profits.
The Sovereign Grant, which funds the Queen's spending as Head of State, will rise in 2014 from £36.1m to £37.89m.
The grant is calculated as a percentage of profits from the Crown Estate, which includes properties such as Windsor Park and covers most UK coastline.
It announced on Thursday its profits had risen 5% to £252.6m.
Aside from the Queen's income, the profit goes to the Treasury to help with the nation's finances.
The value of Crown Estate's property portfolio is now £8.1bn, exceeding £8bn for the first time.
Not private Chairman Sir Stuart Hampson said the record performance would "again make a strong contribution to the nation's finances."
While Crown Estate runs the properties owned by the Crown, it does not own the private property of the Queen.
An analogy often used is that the Crown Estate is the property version of the Crown Jewels - held by the Queen as sovereign, but not for her personal use.
Alison Nimmo, chief executive of the Crown Estate, said: "[Thursday's] results are a ringing endorsement of the quality of our portfolio, our active asset management and our highly skilled team.
"Despite challenging market conditions, we are well placed as a business with a clear vision and investment strategy, great partners and a strong balance sheet."
The Crown Estate's urban portfolio, which includes large parts of London's West End, brought in a total return of 10.6% on assets that are now worth £5.9bn.
Outside of London, the Crown Estate owns 15 retail parks in various cities, including Liverpool, Swansea, Slough and Nottingham.
It also owns shopping centres in Worcester, Oxford and Exeter as well as offices in Birmingham, Manchester and Cambridge.
Its properties outside London are now worth £1.6bn.
The value of the Crown Estate's energy and infrastructure portfolio rose by 8.2% in 2012/13, reaching £564 million, and delivered a total return of 10.6%.
Alternative energy Because it owns and manages the seabed around the UK out to the 12-mile limit, the Crown Estate is heavily involved in offshore wind farms, where it saw an extra 1GW of power come on stream, with around 300 new turbines erected offshore.
The Crown Estate also made £13.1m from cables and pipelines that cross its land.
As part of its overall property portfolio, it also owns the foreshore of almost half of the UK's coastline, although much of it is leased out to third parties.
It holds around 144,000 hectares (356,000 acres) of the country's agricultural land and forests, as well as residential and commercial property outside urban areas.
Read in browser » Payday loans in competition inquiry
By Anonymous on Jun 27, 2013 02:38 am 26 June 2013 Last updated at 19:15 ET 
Payday loans have led some people into a spiral of debt
A decision on whether the payday lending industry will be referred to the competition authorities will be published later.
The regulator, the Office of Fair Trading (OFT), said in March that it was minded to refer the market to the Competition Commission.
It said it had found "deep-rooted" problems in how payday loan companies were competing for customers.
It was concerned that lenders were competing on speed rather than cost.
Debt spiral About two million people in the UK use payday loans. These products are designed as short-term access to cash, at relatively high cost, until the applicant is next paid.
However, in many cases, individuals have struggled to repay and the compounded interest of loan after loan has left them in a spiral of debt.
This is what happened to Mark Todd, a former NHS consultant from Huddersfield.
He took out a payday loan while waiting to get back into work after being the full-time carer of his father. However, he was unable to find work and took out an additional loan to cover the first one.
"It was irresponsible of us to borrow, but it was also irresponsible of them to lend. They were under no pressure, we were under lots," he said.
He was concerned about the operations of brokers, as much as the loan companies themselves.
"Once they have got their teeth into you, they never let go. You just get email after email, text after text, all saying you are approved for x amount of money today," he said.
"When you have got nothing at all and you are struggling to put a meal on the table, then someone sends you a text saying we have got £300 for you ready and waiting right now and it will be in your account in 15 minutes, it is too difficult to say no sometimes."
The OFT will decide whether individuals such as Mr Todd should have had more choice over which payday loan to choose, based on the costs involved.
The OFT has found that providers target people by saying that they can provide the loan quicker than other lenders.
Lenders should only be offering loans to people with an income that means they can repay, which should have ruled out Mr Todd when he was out of work.
Whatever the decision by the OFT, lenders, consumer groups and regulators have been summoned to a summit about payday lending at the Department for Business next week.
The meeting aims to come up with solutions to the "widespread irresponsible lending" highlighted by the OFT's report into the payday industry.
Read in browser » Fraud sentences could focus on harm
By Anonymous on Jun 26, 2013 10:56 pm 26 June 2013 Last updated at 22:56 ET 
Fraud cost the UK an estimated £73bn last year
Sentences for some financial crimes in England and Wales could be based on the harm to victims, under new guidelines from the Sentencing Council.
Existing guidelines are based on the amount of money involved, but the new system would consider impact on victims and whether they were vulnerable.
The proposals apply to offences ranging from fraud and insurance scams to money laundering and bribery.
A 14-week public consultation has now started.
The council can issue only guidelines and does not have any legislative power. The relevant legislation is a matter for Parliament.
BBC legal correspondent Clive Coleman said the proposals would require courts to "measure the harm" of a crime to victims.
"For instance, a rogue trader who scammed a pensioner for £2,000 of roof repairs, severely damaging her confidence, would have faced a sentence ranging from a community order to 26 weeks in prison under existing guidelines," he said.
"That rises to a custodial sentence of between 26 weeks and two years under the proposals."
'Consistent approach' Michael Caplan, of the Sentencing Council, said its research showed fraud could have a "great impact" on victims even if the financial loss was relatively small.
"Our proposed guidelines therefore direct courts to start the sentencing process by looking at what victims have been through," he said.
The National Fraud Authority estimated that fraud cost the UK economy £73 billion in 2012 - more than the entire budget for state education.
The Sentencing Council said fraud against businesses - such as employees claiming false expenses and suppliers making fraudulent payment claims - cost companies £45.5bn in 2011.
In the same year - during which 16,000 fraudsters were sentenced - fraud targeting public money cost £20.3bn, fraud against individuals cost £6.1bn and fraud against charities cost £1.1bn.
Fraud covers a wide range of offences from "cowboy" builders and cash for fake car crashes to complex VAT frauds, our correspondent said.
The Sentencing Council's plan, which also includes punishments for bribery, aims to provide "clear guidance" on sentencing to "promote a consistent approach".
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