fletchbog retweeted
The government's new energy bill paper says 9 times that support costs should fall on those "most able to pay" or on higher incomes.
In its own words, a "transfer from primarily high-income households to low-income households". Which makes your energy bills a second tax system.
fletchbog retweeted
The grid is looking precarious this winter. Grid balancing costs keep spiking off the charts. I've seen all manner of creative excuses this morning but this is a crisis tewnty years in the making. It was around 2008, or thereabouts, when I joined a large energy firm to do a highly uninteresting job, only made interesting by way of my co-worker being one of the lead programmers on the energy trading desk who explained to me in great detail how the grid works.
I was already dimly aware of the overall energy strategy. The idea was that we were going to blow up our coal power stations and build windmills instead, on the presumption that "the wind is always blowing somewhere" and that the easter bunny would intervene in the event there was no wind.
But we knew about dunkelflaute even back then. They knew very will the wind is not always blowing somewhere. But this was a manageable problem because there wasn't all that much wind capacity to offset. You could disguise the problem with importing energy through interconnectors. It was a relatively small problem that could be disguised.
But then we did start blowing up our coal power stations, letting our nuclear power age out, and didn't bother to replace our baseload capacity. We instead built windmills. Rather a lot of them. We built them in far away places, requiring long transmission lines for intermittent power that the grid struggles to assimilate.
Making up the shortfall always depended on gas because most large energy plants can't be ramped up and down at a moment's notice. The problems started when shortfalls were measured in gigawatts. The more windmills you added, the greater the instability.
This was known in 2008 and the problem was never acknowledged. Even back then, realists were saying this only had one destination; rolling blackouts. It's been looking hairy since 2022, and the situation has only worsened, exacerbated by a deliberate decision to run down and close our gas storage facilities, making us more reliant on the day-to-day gas market - which is notoriously volatile, especially when wars break out in our vicinity.
Some renewable energy enthusiasts did acknowledge this might be a problem, but they said it would be a small problem, and that by now, there would be millions of electric cars plugged into the grid that grid operators could use to even out shortages of wind. On paper that was a good idea, if only to even out the odd hour of wind loss. The strategy, though did not address the prospect of days and weeks of cold conditions with no wind, or the fact that nobody wants an EV.
As more wind generation was added to the grid, this problem became bigger and bigger, with no real thought as to what was going to keep the lights on in a crisis. We also banned extraction of our own fossil fuel reserves meaning that we are now wholly dependent on gas imports from wherever we can get it.
Now at this point, if you're not politically attuned, you're probably thinking this is a seriously dumb policy that's so dumb that our politicians couldn't possibly have been this retarded, so there must be some other explanation. If only that were true.
The problem is that a number of subsidies and market incentives were put in place so that the energy sector would concentrate on building windmills. There was (and is) big money involved, so there is a very influential wind energy lobby that misdirects the national conversation and influences our MPs. They are easily bamboozled and incredibly gullible.
Consequently, realists lost the argument. The warnings we've seen in recent years from the indefatigable @KathrynPorter26 (et al) are just the latest generation of energy wonks to notice that making your power grid weather dependent is a shit idea.
Anyone raising the alarm is immediately accused of being a "climate denier" despite warnings from them that there are certain facets of the climate that we ought to pay more attention to. Namely that Europe is prone to protracted periods without wind and sunshine. While our Liberian energy minister can be forgiven for not knowing this, her many predecessors cannot.
So we're now in a position where we have gigawatts of windmills installed, doing absolutely bugger all, at times when people are known to need heating and lighting. So now we're scrambling for gas from whatever we can find it, regardless of the cost - and making "resilience" plans for the near future when the grid stops working completely (which they will blame on Russian hackers).
This is made all the more precarious because the European power stations we import from have more demand than usual, not least because of the dry conditions this summer, meaning hydro is less available, and we're feeding cruise missiles into a regional conflict that is currently demolishing European grid infrastructure.
This would be a good time to fire up our redundant coal burning stations, but the last Tory government demolished them. This is a situation that energy analysts are describing as "bad".
Of course, that is a matter of perspective. Should there be a cold spell where the grid trips out for weeks, or we're reduced to energy rationing, many of you will simply die, thereby reducing demands on the grid and other public services. This is a necessary sacrifice toward our green energy future which, after all, is the priority here. We no longer cling to the archaic idea that the grid should serve the needs of the economy. It is we who must change!
fletchbog retweeted
It just happened AGAIN. Some of you actually had a power cut this time, didn't you?
Our govt via Neso Energy just paid a whopping £1570/MWh to keep the lights switched on. Even higher than the £999 they paid in August.
THIS is why the govt is telling you to prepare supplies. Their mental Net Zero ideology is driving the country to ruin.
fletchbog retweeted
Worth remembering re the BoE move, that it's mostly about oil/energy costs, and the last two days have seen those change rapidly. Note too though that it highlights UK's ridiculous energy fragility - your mortgage is rising because our MPs refuse to prioritise energy security.
fletchbog retweeted
Labour have pushed small business owners past breaking point.
Countless livelihoods destroyed by tax raids.
And then they tell us we "aren't working people."
The Fabians in government are about to find out that you reap what you sow.
fletchbog retweeted
The Bank of England has raised interest rates to 4%, supposedly to tackle inflation.
There is just one problem with this decision. The Bank knows that much of the inflation we are suffering is being driven by rising oil and energy prices, largely resulting from conflict in the Middle East.
It also knows that raising interest rates cannot reduce those prices.
So why is it doing this?
The answer is that the Bank believes it must suppress demand elsewhere in the economy to compensate for rising energy costs.
In other words, it is deliberately making mortgages more expensive, increasing business borrowing costs, discouraging investment and reducing household spending power.
And all this when people are already struggling with higher energy bills. That is problem number one.
There is, however, another problem. Higher interest rates increase costs for businesses, which can then feed through into higher prices. They can, in that case, add to inflation rather than reduce it.
The Bank is imposing economic pain to address a problem its chosen policy cannot directly solve.
That is not sound economic management. It is the consequence of an economic dogma that refuses to recognise the difference between inflation caused by excessive demand and inflation caused by supply shocks.
When will we learn?
fletchbog retweeted
Norwegian oil and gas is carbon neutral and jasmine scented.
UK government to outlaw new North Sea drilling bbc.in/4iyVSUO
fletchbog retweeted
I find articles like this hilarious. They're written as though there's this thing happening that we can't explain.
Look at the data... quiet quitting is particularly pronounced among Gen Z and younger millennials.
Then look at the backdrop to their careers. These people have watched their futures being spent on bailouts, lockdowns and furlough.
Even if you work extremely hard and earn promotions (which is far from guaranteed), wages in the UK are so crap, and the cost of living so high, that the rewards often amount to very little.
The extra pay can be negligible. The extra effort and responsibility are not.
And if you've worked hard, trained and made your way up the greasy corporate pole, there's a good chance you've watched entry-level wages creep ever closer to yours. You might reasonably be asking yourself why you bothered in the first place.
Since the pandemic began, the National Living Wage has increased by nearly 55%. If you're someone with years of experience, training, progression and hard work under your belt, and your wages haven't kept pace, why wouldn't you question the value of all that effort?
The incentive has been inverted.
This is wage compression, and we're now witnessing the second- and third-order effects governments seem so oblivious to. When the financial reward for taking on more responsibility diminishes, so does the incentive to do it.
And this is what's happening. People are moving the dial they actually have control over… how much they give a shit about their job. And I don't blame them.
I think people are also starting to realise that much of the reward for their hard work is swallowed up by the ever-growing, increasingly wasteful blob that is the British state.
It's like having someone sitting on your shoulders, stealing half your food, getting heavier by the day, and repeatedly slapping you around the face as you try to go about your life.
'Quiet quitting' could be hitting the economy - here's why bbc.in/4ijTORZ
fletchbog retweeted
📣“When even someone as relatively sensible as Reynolds believes that employers are a class that don’t work for a living but somehow live off the backs of ‘working people’ then it shows the scale of Labour’s inability to grasp even the basics of wealth creation and growth – and thus the scale of the problem for our economy.”
@EmmaforWycombe
capx.co/labours-mangled-sixt…
fletchbog retweeted
So the Labour government now intend to punish the self employed to take their tax in advance every month. Yet another hammer blow against the engine room of the economy - the self employed.
Many self employed workers receive delayed payments from clients and customers. This new monthly tax grab will destroy so many businesses.
fletchbog retweeted
JUST IN: 🇵🇱 Statement by the President of the Republic of Poland, Karol Nawrocki following last night's coup attempt by liberal Prime Minister Donald Tusk:
“Last night, the constitutional order of the Republic of Poland was violated and a constitutional state body was taken over by force. I have held consultations with the First President of the Supreme Court, Zbigniew Kapiński, who likewise does not recognise as legal the actions taken by persons usurping power in the Constitutional Tribunal.
I call for the restoration of the legal order and for the coercive forces sent there by the government to leave the Tribunal’s premises.
I have facilitated access to the Constitutional Tribunal for its lawfully serving Vice-President, Judge Bartłomiej Sochański.
In view of the threat to the internal security of the Republic of Poland, I am convening urgent consultations today with representatives of the parliamentary groupings, aimed at stabilising the political situation and restoring the constitutional order.
I thank everyone who is at the Constitutional Tribunal, standing in defence of the Constitution of the Republic of Poland.”
All newspapers are the owners preferences and propaganda and always will be
Another reason that I will be cancelling my Telegraph subscription on Monday.
Not just the departure of Allison Pearson, Liam Halligan, Sherelle Jacobs and other fine journalists but because of this:
The new owners (Springer) require ALL employees to SUPPORT A UNITED EUROPE OR THEY SHOULD LEAVE.
If they think for a moment that I am paying money for THAT, they are very much mistaken.
I think their cancellation phone lines ☎️ are going to be VERY BUSY on Monday.
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fletchbog retweeted
as someone who works in the software industry in britain, i can't believe there are contracts and estimates like this.
it seems getting these government contracts is incredibly lucrative in the uk, because the amounts are absolutely insane. £1.7bn to £4.4bn for hmrc's customer system? pre ai that's a crazy number. post ai it's still crazy.
for a fraction of the cost you could hire britain's top 50 engineers and pay them £300k a year. over 15 years that's £225m. it would cost less and be way better than what will come out of this.
put the rest into an ai lab and you'd have one of the best funded in europe. but no, it's an hmrc crm system lol.
fletchbog retweeted
Local piemaker explains how Burnham's first Budget will make things much worse:
"I don’t qualify for the business rates relief because I’m multi-site… I’ve got two shops, so I don’t qualify. The minimum wage has increased. I’m not saying we shouldn’t pay staff. I’m saying we can’t afford to pay them…
All my staff have been with us for years. So I’m going to have approximately a £700 a week increase. My suppliers are having an increase too. My supply bills are around £20,000 to £30,000 a week. That’ll go up 10%, so £2,000 to £3,000 a week. So that’s £4,000 a week I’ve got to find…
That’s about 20,000 to 30,000 pies a week. So my costs have gone up. I’ve got no business rates relief. The National Insurance is crippling me. The energy crisis is crippling me. I’m going to have to put my prices up,
Customers are going to get mad. I’m going to get less profit. As a family, as a director, I’ve got to take a 2% cut. So my family, my one-year-old girl. I’m taking a pay cut. The business is taking a pay cut.
How is that breathing room for me? Where’s my breathing space? John Healey, if you’re listening, where’s my breathing space? You promised me. You promised the UK breathing space. Where is it?"
fletchbog retweeted
It astounds me how little some people understand inflation and what causes it.
Take my last point about the minimum wage. Why not £100 an hour? Why not £1,000? We'd all be rich then, wouldn't we? Marvellous.
Except, of course, we wouldn't. Raising wages by law doesn't magically conjure wealth out of thin air. When wages rise faster than productivity, the money must be found somewhere. Businesses can swallow the cost, raise prices, cut jobs or simply close their doors. And when those price rises spread throughout the economy, inflation eats away at the purchasing power of the very wages that have increased.
It's a closed loop. Businesses must earn the money to pay their workers, and that money ultimately comes from customers. You cannot simply legislate prosperity into existence.
And let me tell you an uncomfortable truth: the real minimum wage is zero.
fletchbog retweeted
In 1999 you had to earn over 4x the minimum wage to be considered a higher earner on the 40% rate.
Today just 1.8x the minimum wage considered high earner!
If the same minimum-wage-to-high-earner ratio was applied from 1999 you’d have to earn over £115k before hitting the 40% income tax rate.
We’re seeing a level of wage compression that would make a Soviet era socialist blush.
I bet he did!
🚨 NEW: John Healey has announced Ukraine will receive £10bn in additional economic and military support
"We called him this morning... he told us we made his day"
#Budget
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