Truss’ Energy Bailout

I'm confused how we will pay for it as she wants to cut taxes too. Public services in many areas have been significantly cut.

I think they know the Tories will lose the next election, so the plan is to run up a huge debt, and then barrack from the sidelines when an opposition government has no option but to raise taxes to pay for it. The thought process is that will guarantee they are only out of office for one term.

As they say - a good day to bury bad news?

Does this mean that those who run swimming pools and jacuzzis can continue to fund their use?

No help for me that I can discern - I have a gas tank.

Banning fracking was short termist. Not increasing nuclear power was short termist. Reducing gas storage capacity was short termist. There need not have been a UK energy crisis at all if government had done its job properly.

A lot of families will end up paying more, or less, than the £2,500 figure in the headlines. The cap is what an household consuming the average amount of energy on a dual-fuel tariff would pay. Larger households and those with bigger or poorly insulated properties consume more energy and could end up paying perhaps £3,400 or more. So running swimming pools or leaving lights on all day will still result in bills higher than average.

Not insisting on insulating homes properly is short termism.

As Keir Starmer and Ed Davey have pointed out the energy producers, like Shell and BP, are due to make at least £170 billion (not million, billion) in excess profits due to Putin's war.

The leaders of these companies have indicated that a windfall tax would have absolutely no effect on their investment budget

So why on earth do we not ask them, to pay for our huge energy bills by means of a windfall tax?

Is it because Truss is financed and backed by vested interests?

Surely not. We all hoped that we had moved on from the disastrous era of Tory corruption under Johnson.

A caller on James O'B today explained that he had been involved in raising capital for a American companies to fund exploration of fracking opportunities in Europe. Apparently Poland was found to be the best place because of its geology and relatively sparse population. Trials were carried out, but eventually the major companies the major companies pulled out - for a variety of reasons I think - too expensive, too difficult.

What Truss with her silly plans is forgetting - fracking uses a huge amount of water and the UK has just been through a period of drought and water shortages. Where does she think the water come from. My understanding is that the water, once used will be polluted.

Finally, a news item yesterday from a solar farm on the Euston Hall Estate, in Suffolk. Apparently it took 4 months to build the farm and was not hugely expensive.

But Truss doesn’t like solar power does she.

We (and I suspect Truss) have no idea yet on how this £150bn is going to be funded. I suspect her inclination is to fund it by taxing the consumer further down the line, but that remains to be seen. Perhaps she will change her mind if it is seen as a deeply unpopular policy by the paying public when the profiteering by the energy companies is so outrageously enormous.

I am hoping they will come up with a scheme for rural dwellers with oil tanks etc.
I worry a lot about one of my daughters and her little family living on a modest income.

Interesting post Dinahmo. Thank you.

Baggs

Banning fracking was short termist. Not increasing nuclear power was short termist. Reducing gas storage capacity was short termist. There need not have been a UK energy crisis at all if government had done its job properly.

I second that.

Banning fracking was a good idea. Rescinding is a mistake.

When are we going to hear more about these very important plans? It’s all been lost in the news about the Queen.

MawtheMerrier

As they say - a good day to bury bad news?

No one could have put it better Maw.
Now we wait for the fallout that will surely come.

We appear to be very thin on explanation where the "energy price Guarantee" is concerned. I have the feeling that Truss would have heaved a sigh of relief that the discussion of this was interrupted in Parliament.

One fact I think we should keep in mind is regarding Truss's Campaign fund for the leadership. The largest single donation came from Fitriani Hay, wife of James Hay, a former BP executive, who donated £100,000.

You may feel that matters or that it doesn't. The acceptance of this money does beg the question, "why is the PM so opposed to a new windfall tax". She may have opposed this anyway. However, taking this money to fulfil personal ambition makes it difficult to believe it hasn't influenced her decision.

Although Ms Truss is adamant she is lowering taxes, she intends we pay for the freeze in energy prices over the next 20 years. Apparently, taxes are not taxes when they are paid for by us all through our energy bills.

taking this money to fulfil personal ambition makes it difficult to believe it hasn't influenced her

So true daisy

Baggs

Banning fracking was short termist. Not increasing nuclear power was short termist. Reducing gas storage capacity was short termist. There need not have been a UK energy crisis at all if government had done its job properly.

Reducing gas storage was short termism, as was the reduction in storage of sewage.

The banning of fracking and nuclear power was a result of the lack of knowledge as to what would happen (the former) and what did happen elsewhere (the latter).

There is an excellent documentary series on Netflix about Three Mile Island and the shenanigans of the power station operators to get it back on stream after a partial meltdown in 1979.

Liz was in talks with Shell and B; just before she was made PM, She I believe was given a 450k donation for Tory party funds. Stinks doesn’t.

Barmeyoldbat

Liz was in talks with Shell and B; just before she was made PM, She I believe was given a 450k donation for Tory party funds. Stinks doesn’t.

If that is so then is anyone surprised? Standards in the political world have never been lower.
What is this country coming to?

Esspee, nothing has changed, same self bunch