FirstFT: UK considers paying energy suppliers to protect consumers from high bills
UK is exploring radical intervention In the electricity market, when wholesale natural gas prices rise sharply, the state pays energy suppliers to soften the blow to consumers.
The proposal, pushed by energy companies, has been described by government insiders as “reasonable” and “logical”, but acknowledged there are downsides to such a step.
Under the initiative, when wholesale gas prices exceed a certain threshold, energy suppliers will receive payments from the government to avoid passing on the increased prices to consumers.
Some suppliers said the proposal, known as a temporary price stabilization mechanism, could become self-financing within a few years, as energy companies would have to return money to the government when wholesale prices fell below agreed levels.
Chancellor Rishi Sunak conceded it could put taxpayers at serious risk if wholesale prices remained high, but he had been discussing ways to ease the cost of living crisis with Boris Johnson, officials said.
Five more stories in the news
1. Intelsat head ‘goodbye in gold’ with $4 million Outgoing Intelsat CEO Stephen Spengler will receive At least $4 million in cash He is retiring with a dividend after one of the world’s largest fixed-satellite operators emerged from Chapter 11 bankruptcy this year.
2. American Airlines warns 5G rollout will lead to ‘chaos’ Upcoming high-speed 5G telecom services may Ground flights across the USAn industry lobby group for the largest U.S. airline warned yesterday that it urged government agencies to intervene to avoid “chaos” for passengers and “immeasurable” disruptions to supply chains.
3. Russian sanctions prove to undercut Western threats Moscow struggles to reduce reliance on global financial system, investors call it ”russian fortressstrategy, could make the threat of Western sanctions a less effective deterrent to attacks on Ukraine. EU demand for Russian gas also makes any restrictions on energy exports potentially self-destructive.
4. UK inflation expected to hit 30-year high Inflation data for December tomorrow is expected to reach A 30-year high as rising cost pressures spread across the economy. Economists polled by Reuters forecast inflation to hit 5.2 percent, the highest level since the early 1990s and up from November’s decade high of 5.1 percent before peaking in April.
5. Conservative MP conveys voters’ anger at 10th party Conservative MPs expressed strongly disagree Voters were unhappy about the Downing Street party scandal yesterday, as a survey showed a significant number of party activists believed Boris Johnson should resign.Johnson’s former adviser Dominic Cummings turned potential nemesis A steady stream of inspiration.
international poorest country will have to Repay about $35 billion Funding will be made available to lenders in 2022 after many rejected international relief efforts and turned to capital markets to fund the pandemic response, according to the World Bank.
Novak Djokovic can also be prohibit He will not be able to play at the French Open after Australia cancelled his vaccination visa, the government said.
CEO modern say joint booster shot Covid-19 and the flu May be available “in certain countries” by the end of 2023.
Despite the rapid spread of infection, Pakistan Yes resist blockade Because the government is trying to avoid exacerbating the economic crisis.
the day ahead
Paris fashion week annual fashion feast Back on the runway After two years of mixed virtual events, starting with menswear. (AFP)
Nord Stream 2 German Foreign Minister Annalena Berbock arrives in Russia the next day Visit Ukraine, representing the completed but not yet certified Nord Stream 2 gas pipeline, will not continue If Russia invades its western neighbors.
Economic data Newest Zew SurveyAn index measuring the six-month economic outlook for German investors and analysts is out.UK releases latest Labour Market Statistics and monthly bankruptcy data, while OPEC has a monthly oil market report. (Zew, Financial Times)
what are we still reading
Has Sony lived up to its entertainment ambitions? Over the years, Sony has created or purchased these instruments in pursuit of its goal of becoming the most fully integrated entertainment company in the world. Critics argue that the $157 billion Japanese corporate symbol will never be able to keep the orchestra in harmony. It seems to be changing now.
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What happened to the Lost Woods of London? Although difficult to imagine today, until the end of the 18th century, vast oak forest Stretching seven miles across what is now the suburbs of South London. What’s left is the ancient woodland closest to central London.
Why publicly blaming your employees is always a cheap shot Fostering a culture of accountability makes it harder for teams to learn from mistakes, Andrew Hill wrote. Shaming a public official is an abuse of power and undermines the shamer by exposing their unwillingness to take responsibility for the tasks they delegate.
Things to do in Tokyo
Kathy Matsui is one of Asia’s top finance executives, and her pioneering work on gender equality has helped shape Japanese government policy. She shares her Tokyo guide, highlighting women leaders in art, design and food.