News
Truss unveils plan to cap domestic gas and electricity bills at £2500 per year from October
ON THURSDAY morning, September 8, the Prime Minister unveiled her big idea to help UK families cope with spiralling energy costs over the next two years.
Mrs Truss said domestic gas and electricity bills in the UK will be capped at £2500 per year from October in a statement to the House of Commons.
The announcement means that families will only pay twice as much for their energy than they did last year.
The price cap is around £1,000 less than that already announced.
It’s still about £500 more than at present.
As well as households, businesses are also expected to receive some help. Many firms are currently facing even sharper rises than households, and many fixed-rate deals for business expire this October, exposing thousands of firms to full costs that could rise by four or five times or more.
She did not provide details of relief for businesses, apart from a brief mention that a similar measure would provide for six months of protection and targeted support for businesses most at risk.
Otherwise, Liz Truss kicked support for business into the long grass for cutting by Jacob Rees Mogg.
She said she would “not give in to the other side” on windfall taxes on energy firms as “that would undermine the national interest by disincentivising energy companies we need to invest in this country.
“We are doing important business to help people and businesses get through this winter and winter whilst helping Britain secure its long-term energy supplies.
“There will be as cost to this intervention, but we are facing a global energy crisis.”
Preseli Pembrokeshire MP Stephen Crabb praised the PM and said to the House: “Doesn’t this demonstrate Mr Speaker that Conservative Governments do not stand-by when help is needed.”
Shock data released this week shows that 355,000 companies with a turnover higher than £1m are designated as high energy users – industries such as steel, glass, concrete, and paper production.
Of those, an estimated 75,972 are at risk of insolvency, and 26,720 could fail because of energy costs.
That’s in addition to the 26,000 insolvencies already predicted this year.
Without a large-scale support package from the government, more businesses will fail than during the pandemic and any other recession.
A business turning over a million pounds two years ago would have spent around 8% of that on energy costs and made profits of around £90,000.
If the cost of energy doubles to 16%, that instantly wipes out profitability, and they’re straight into a scenario where it threatens the viability of the business within a year.
Beyond the large, energy-intensive companies, smaller companies with turnover under £1m were also at risk of failure, data analytics firm Red Flag Alert said on Tuesday (Sept 6).
In Pembrokeshire, some firms have already closed their doors – one example is the popular Haven Brasserie in Nolton Haven, which said it would shut for “reasons of economic uncertainty”.
The hospitality sector, which is a huge part of the local economy, is facing a triple threat of increasing energy bills, higher supply and staffing costs, and a fall-off in consumer spending, squeezed by inflation.
Red Flag Alert calculates businesses overall will need £100bn a year in support to tackle the rise in energy bills.
The government is already under pressure over how it will finance a promised package of support for households while sticking to promises to cut taxes.
Responding to the PM’s announcement, opposition leader Keir Starmer said the argument against a windfall tax was nonsense and that energy companies’ own announcements showed investment would not be deterred.
He said the PM was focused on protecting the excess profits of energy companies who reaped their unplanned benefit from Russian aggression. At the same time, ordinary families would end up repaying the money she’d borrowed years ahead through their bills.
Keir Starmer said that strategy was a tax on families instead of hitting big corporations who had failed to invest money in energy security and infrastructure.
News
Greens call for urgent shift to renewables amid energy price fears
THE CEREDIGION Penfro Green Party has warned that rising global tensions are driving up energy costs and leaving households across west Wales increasingly exposed to price shocks.
In a statement issued on Wednesday (Mar 18), the party said the ongoing conflict in the Gulf is pushing up fuel prices, with knock-on effects on the cost of living, including food and household bills.
The Greens argue that decades of reliance on cheap oil have left the UK vulnerable, particularly in rural areas. They highlighted that around 72 per cent of households in the Ceredigion and North Pembrokeshire constituency rely on oil for heating.
The party is now calling for an urgent transition to electrified heating systems, supported by a major expansion of renewable energy, including wind and solar power.
Lead candidate Amy Nicholass said communities must be properly involved in decisions about new energy infrastructure.
“Consultations feel meaningless if people can’t see that their voices are being heard,” she said.
Plans for windfarms and new electricity pylons across Carmarthenshire, Ceredigion and Powys have faced opposition from some residents and landowners. However, the Greens said these developments are part of the Welsh Government’s long-term strategy set out in the Future Wales National Plan 2040.
The party suggested it is inconsistent for political parties to support the strategy at a national level while opposing specific planning applications locally.
It also addressed concerns over alternatives to pylons, such as underground cable trenching, warning that these options are significantly more expensive and have not been widely used for high-voltage, long-distance transmission. Pylons, it added, are also more resilient during severe weather.
The Greens say planning decisions should be taken at the lowest appropriate level, giving local councils a stronger voice, while accepting that the Welsh Government should retain final authority over major strategic projects.
The party believes that greater community involvement, along with tangible local benefits such as improved transport, upgraded facilities, and access to renewable technologies, will be key to gaining public support.
The statement concludes that the conversation around energy infrastructure must shift quickly to reflect both the urgency of the crisis and the potential benefits for local communities.
Crime
Motorist loses licence after report of drink-driving from Narberth pub
A woman who was reported to police for drink-driving from a Narberth pub has been banned from the roads
A COURT has heard how a motorist was arrested by police officers following a call stating that she was drink-driving from the Ivy Bush in Narberth.
The call was made just after 10pm on February 22.
“The caller stated that Tanya Hanna was drinking-driving from the Ivy Bush in a Mercedes,” Crown Prosecutor Linda Baker told Haverfordwest magistrates this week.
When Hanna, 36, was apprehended by officers at Kiln Park Road, a roadside breath test proved positive while further tests at the police station showed she had 47 mcg of alcohol in her system, the legal limit being 35.
Hanna, who has no previous convictions, pleaded guilty to the drink-driving charge. She was represented in court by Michael Kelleher.
“It wasn’t the most pleasant situation when someone took umbrage with Tanya and phoned the police,” he said. “As a result, she has lost her job.
“She knows she’s let herself and her family down, because without a driving licence, it’ll be very difficult for her to keep in regular contact with them, having to rely on public transport.”
Hanna, of Beach Hotel, Marsh Road, Pendine, was disqualified from driving for 14 months. She was fined £120 and ordered to pay £85 court costs and a £48 surcharge.
Crime
Driver banned after drink-driving on Cleddau Bridge
A MILFORD HAVEN motorist has been banned from the roads after being caught driving on Cleddau Bridge when he was over the drink-drive limit.
Andrew Evans, 36, was stopped by officers just before 1am on February 25 as he drove his Nissan Qashqai northwards towards Neyland.
After providing a positive roadside breath test, subsequent tests carried out at the police station showed he had 42 mcg of alcohol in his system, the legal limit being 35.
This week Evans, of Great North Road, Milford Haven, pleaded guilty to the offence when he appeared before Haverfordwest magistrates. He was represented in court by solicitor Michael Kelleher.
“He believed he’d allowed enough time for the alcohol to pass through his system but that, unfortunately for him, was a dreadful mistake although his alcohol levels were decreasing all the time,” said Mr Kelleher.
Evans, who has no previous convictions, was disqualified from driving for 13 months. He was fined £461 and ordered to pay a £184 court surcharge and £85 costs.
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