Ofcom investigating inflation-linked mid-contract price rises for broadband

The regulator said it was “concerned” about the degree of uncertainty consumers face about future price rises specified in contracts on the basis of inflation.

The unpredictability of inflation rates means it can be difficult to know, often months in advance, what an inflation-linked price rise will equate to in pounds and pence when consumers enter a contract.

The review comes in the wake of record high inflation, with the cost of living increasing across the UK since early 2021.

The annual rate of inflation reached 11.1 per cent in October 2022, a 41-year high, before easing to 10.7 per cent in November and 10.5 per cent in December 2022. High inflation affects the affordability of goods and services for households.

In preliminary research, Ofcom found that around a third of mobile and broadband customers do not know whether their provider can increase their price. Among those who do know their provider can increase their price, around half do not know how this would be calculated.

General consumer law does not prevent companies from increasing their prices during the contract period, provided they do so fairly.

Many, but not all, telecoms firms choose to do this. Some give customers 30 days’ notice and the right to exit penalty-free. Others specify price rises in customers’ contracts from the start.

Ofcom has strict rules in place that mean providers who specify price rises in contracts must make this clear before customers sign up. In December, it launched a separate enforcement programme into whether companies have been sticking to this.

“We need to take a closer look at these issues to consider whether we need to intervene to ensure customers have greater certainty and clarity, from the outset, about the prices they will pay over the duration of their contract,” Ofcom said.

The findings of the reviews are expected to be published later in the year. Millions of customers are currently either out of contract or with a provider that lets them walk away if prices go up, although many are also in longer-term contracts.

Cristina Luna-Esteban, Ofcom’s director of telecoms consumer protection, said: “Customers need certainty and clarity about what they will pay over the course of their contract, but inflation-linked price rises can be unclear and unpredictable, so we’re concerned that providers are making it difficult for customers to know what to expect.”

Citizens Advice director of policy Matthew Upton said: “Ofcom is right to shine a light on this practice, but consumers need rapid action before inflation-busting price hikes kick in this April.

“As we all pull together in a cost-of-living crisis, companies should do everything in their power to help consumers. That means making pricing crystal clear.

“Worryingly, we found one in three people currently on contracts with rises linked to CPI have never heard of it.

“What consumers really need is for Ofcom and the Government to ban mid-contract price rises.”

Blackouts possible as Drax employees plan strikes over wages

Around 180 workers, who are members of Unite, have rejected an eight per cent pay increase as it was deemed to be a “substantial” pay cut in real terms. The current inflation rate according to the retail price index (RPI) stands at 13.4 per cent.

When Drax is fully operational it generates seven per cent of the UK’s electricity, but the proposed strike action would force Drax to temporarily shut down.

Due to tight supplies of natural gas and concerns over energy security, Drax was asked to start warming some of its elderly coal generators in January as energy demand soared amid low temperatures. A similar request was made in December, although the extra power ended up not being needed.

Unite general secretary Sharon Graham said: “This is a classic case of greed by a company which is already generating eye-watering profits. Drax is cynically seeking to boost its bonanza profits further by forcing workers to take a real-terms pay cut.

“Unite is now totally focused on the jobs, pay and conditions of its members and the workers at Drax will be receiving the union’s complete support.”

Unite has announced an initial nine days of strike action, with one-day strikes taking place on 20 and 27 February, followed by several more dates in March and April.

Unite said the workers were “incensed” that Drax was failing to rise wages in line with the RPI despite the fact is has made significant profits in recent months due to the increase in the cost of electricity.

According to the union, Drax is estimated to generate profits in excess of £680m for 2022, an increase of over 50 per cent on the previous year.

Unite regional officer Shane Sweeting said: “The strike action at Drax will inevitably cause considerable strain on the national grid but this dispute is completely of the company’s own making. Drax has had every opportunity to make our members a fair offer, but it has repeatedly failed to do so.”

A Drax spokesperson said: “In the event of industrial action, Drax has robust plans in place to ensure the power station continues to safely generate renewable electricity for millions of homes and businesses.

“We have put forward a generous full and final pay settlement which rewards our valued colleagues with a significant pay rise worth 10 per cent and a £2,000 lump sum.

“We are deeply disappointed that Unite is planning to go forward with this unnecessary action which will see colleagues lose money instead of securing a significant pay rise. Drax remains open to dialogue with Unite to avoid industrial action.

“There are three trade unions representing colleagues at Drax Power Station and this offer has been accepted by Prospect, while GMB has stated it will not be taking industrial action.”

Last summer, environmental campaigners warned that the power station’s plans to install a carbon capture facility on site could see its total energy output drop by a third and increase the risk of blackouts.

New science and energy security ministers created in Cabinet reshuffle

Prime minister Rishi Sunak’s Cabinet reshuffle has resulted in the creation of a new Department for Energy Security and Net Zero and a dedicated Department for Science, Innovation and Technology. 

The current business minister, Grant Shapps, will take on the role of minister for the new Energy Security and Net Zero department, while former culture minister Michelle Donelan has been appointed to run the department for Science, Innovation and Technology. 

Additionally, Kemi Badenoch will now lead the joint Department for Business and Trade, while Lucy Frazer has joined the Cabinet as culture secretary, which has been refocused to centre around sports and the creative arts. 

Sunak also replaced sacked Tory party chairman Nadhim Zahawi with Greg Hands, who had been operating as trade minister until today.

The government said the move was made to “ensure the right skills and teams are focused on the Prime Minister’s five promises: to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats.”

The department for Science, Innovation and Technology has been tasked with the role of driving “the innovation that will deliver improved public services, create new and better-paid jobs and grow the economy”.

In its announcement, the government said: “Having a single department focussed on turning scientific and technical innovations into practical, appliable solutions to the challenges we face will help make sure the UK is the most innovative economy in the world”. 

The creation of this department has also been perceived as a push towards Sunak’s pledge to make the UK a “science superpower”

“I will turbocharge clinical innovation to enhance our medicines research regime, deliver better access to funding and lab space, and ensure that we have access to the very best talent available,” Sunak said in August last year. 

The creation of a standalone energy department can also be traced back to one of Sunak’s campaign promises. 

This department will now be tasked with “securing our long-term energy supply, bringing down bills and halving inflation”, according to Downing Street.

The government presented the creation of this department as a way of recognising “the significant impact rising prices have had on households across the country as a result of Putin’s illegal war in Ukraine” and “the need to secure more energy from domestic nuclear and renewable sources”. 

Shapps, who served as transport minister in Boris Johnson’s government, tweeted that he is “delighted” to head up the new department.

In response to the announcements, shadow climate secretary Ed Miliband said that it looked like Rishi Sunak was now admitting that the decision to get rid of the Department of Energy in 2016 was a mistake.

“Seven years after the disastrous decision to abolish the Department of Energy, the Conservatives now admit they got it wrong, but a rearranging of deckchairs on the sinking Titanic of failed Conservative energy policy will not rescue the country,” the Labour MP tweeted.

“Britain’s energy bills are too high and our system too weak because of years of disastrous decisions: the ongoing onshore wind ban; blocking of solar; slashing of energy efficiency; disastrous regulation of the retail market, and an unlawful net zero plan. All this must change.”

Moreover, Greenpeace warned that Rishi Sunak’s expected creation of a new energy department may not address the climate crisis.

“As climate disasters intensify, energy costs spiral and the world continues to sink under rising seas, without other fundamental reforms, re-establishing a department for energy will be as helpful as rearranging the deck chairs on the Titanic,” said Dr Dough Parr, UK’s director of policy at Greenpeace, echoing Miliband’s metaphor.

“It’s government policy and underinvestment that is holding back real action on the climate and energy crises, not the departments or ministers in place.

“Unless the new-look department for energy is given the freedom and funding to rapidly scale up renewable energy production – both offshore and on – to shore up domestic supply, as well as roll out a nationwide scheme to insulate the tens of millions of energy-wasting homes across the country, what’s the point?”

The UK is currently facing a cost-of-living crisis, largely provoked by the rise in fuel prices following Russia’s invasion of Ukraine. 

The subsequent enormous boost in earnings for energy companies including Shell and BP has led to renewed calls for a toughened windfall tax – something that the new energy department would have to address.  

Last summer, a cross-party group of peers on the House of Lords Science and Technology Committee described the government’s international science policy as “somewhat incoherent” and warned that the UK is “not on course to meet its ambitions” of becoming a science superpower by 2030.  

New science and energy security ministers created in Cabinet reshuffle

Prime minister Rishi Sunak’s Cabinet reshuffle has resulted in the creation of a new Department for Energy Security and Net Zero and a dedicated Department for Science, Innovation and Technology. 

The current business minister, Grant Shapps, will take on the role of minister for the new Energy Security and Net Zero department, while former culture minister Michelle Donelan has been appointed to run the department for Science, Innovation and Technology. 

Additionally, Kemi Badenoch will now lead the joint Department for Business and Trade, while Lucy Frazer has joined the Cabinet as culture secretary, which has been refocused to centre around sports and the creative arts. 

Sunak also replaced sacked Tory party chairman Nadhim Zahawi with Greg Hands, who had been operating as trade minister until today.

The government said the move was made to “ensure the right skills and teams are focused on the Prime Minister’s five promises: to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats.”

The department for Science, Innovation and Technology has been tasked with the role of driving “the innovation that will deliver improved public services, create new and better-paid jobs and grow the economy”.

In its announcement, the government said: “Having a single department focussed on turning scientific and technical innovations into practical, appliable solutions to the challenges we face will help make sure the UK is the most innovative economy in the world”. 

The creation of this department has also been perceived as a push towards Sunak’s pledge to make the UK a “science superpower”

“I will turbocharge clinical innovation to enhance our medicines research regime, deliver better access to funding and lab space, and ensure that we have access to the very best talent available,” Sunak said in August last year. 

The creation of a standalone energy department can also be traced back to one of Sunak’s campaign promises. 

This department will now be tasked with “securing our long-term energy supply, bringing down bills and halving inflation”, according to Downing Street.

The government presented the creation of this department as a way of recognising “the significant impact rising prices have had on households across the country as a result of Putin’s illegal war in Ukraine” and “the need to secure more energy from domestic nuclear and renewable sources”. 

Shapps, who served as transport minister in Boris Johnson’s government, tweeted that he is “delighted” to head up the new department.

In response to the announcements, shadow climate secretary Ed Miliband said that it looked like Rishi Sunak was now admitting that the decision to get rid of the Department of Energy in 2016 was a mistake.

“Seven years after the disastrous decision to abolish the Department of Energy, the Conservatives now admit they got it wrong, but a rearranging of deckchairs on the sinking Titanic of failed Conservative energy policy will not rescue the country,” the Labour MP tweeted.

“Britain’s energy bills are too high and our system too weak because of years of disastrous decisions: the ongoing onshore wind ban; blocking of solar; slashing of energy efficiency; disastrous regulation of the retail market, and an unlawful net zero plan. All this must change.”

Moreover, Greenpeace warned that Rishi Sunak’s expected creation of a new energy department may not address the climate crisis.

“As climate disasters intensify, energy costs spiral and the world continues to sink under rising seas, without other fundamental reforms, re-establishing a department for energy will be as helpful as rearranging the deck chairs on the Titanic,” said Dr Dough Parr, UK’s director of policy at Greenpeace, echoing Miliband’s metaphor.

“It’s government policy and underinvestment that is holding back real action on the climate and energy crises, not the departments or ministers in place.

“Unless the new-look department for energy is given the freedom and funding to rapidly scale up renewable energy production – both offshore and on – to shore up domestic supply, as well as roll out a nationwide scheme to insulate the tens of millions of energy-wasting homes across the country, what’s the point?”

The UK is currently facing a cost-of-living crisis, largely provoked by the rise in fuel prices following Russia’s invasion of Ukraine. 

The subsequent enormous boost in earnings for energy companies including Shell and BP has led to renewed calls for a toughened windfall tax – something that the new energy department would have to address.  

Last summer, a cross-party group of peers on the House of Lords Science and Technology Committee described the government’s international science policy as “somewhat incoherent” and warned that the UK is “not on course to meet its ambitions” of becoming a science superpower by 2030.  

BP backs down on climate pledges despite soaring profits

BP revealed it earned $28bn (£23bn) in 2022, following the sharp increase in fuel prices brought about by Russia’s invasion of Ukraine. 

The company also announced it would be scaling back on its plans to reduce the amount of oil and gas it produces by 2030. BP now expects its fossil fuel production to fall by 25 per cent by 2030, compared to a previous expectation of 40 per cent.

BP was one of the first oil and gas giants to announce an ambition to cut emissions to net zero by 2050, and had previously promised that emissions would be 35-40 per cent lower by the end of this decade.

The change in policy has been justified by chief executive Bernard Looney, as part of a plan to address energy security following the disruption to oil and gas markets caused by Russia’s war on Ukraine.

BP is also increasing its investment in greener energy, planning to invest up to $65bn (£54bn) between 2023 and 2030 into products such as bioenergy, electric car charging, wind and solar power and hydrogen.

“We need continuing near-term investment into today’s energy system, which depends on oil and gas, to meet today’s demands and to make sure the transition is an orderly one,” Looney said.

“We will prioritise projects where we can deliver quickly, at low cost, using our existing infrastructure, allowing us to minimise additional emissions and maximise both value and our contribution to energy security and affordability.”

The oil and gas giant made £7.1bn between July and September alone, which amounts to more than double its profit for the same period last year.

The discrepancy between the company’s huge annual profits and its commitment to reduce its emissions – particularly during a cost-of-living crisis – has faced criticism and led to renewed calls for a toughened windfall tax. 

“Not only will BP’s new strategy fail to deliver much-needed energy security in the UK but it will ensure that people across the globe already battling devastating droughts, floods and heatwaves, will continue losing their lives and livelihoods,” said Greenpeace UK’s head of climate justice Kate Blagojevic. 

Friends of the Earth added BP’s profits “will be yet more salt in the wound for millions of people who’ve struggled to afford to stay warm and well this winter”.

Trades Union Congress general secretary Paul Nowak said: “As millions struggle to heat their homes and put food on the table, BP are laughing all the way to the bank.”

Labour has joined this criticism, with Labour shadow climate change secretary Ed Miliband saying: “What is so outrageous is that as fossil fuel companies rake in these enormous sums, Rishi Sunak still refuses to bring in a proper windfall tax that would make them pay their fair share.”

BP is far from being the only company that has profited from rising fuel costs. Earlier this week, Shell revealed it had recorded its highest-ever profit in the energy giant’s entire 115-year history, as its core profits skyrocketed to £68.1bn ($84.3bn) in 2022. 

These “extraordinary” profits made by energy companies led the government to introduce in 2022 a windfall tax – called the Energy Profits Levy. The rate was originally set at 25 per cent, but has now been increased to 35 per cent. 

The EPL is predicted to raise £5bn in its first 12 months, and the profits are set to be used to provide a £400 discount on millions of households’ energy bills. 

As a result, BP said its UK business, which accounts for less than 10 per cent of its global profits, will pay $2.2bn in tax for 2022, including $700m (£584m) solely due to the Energy Profits Levy.

In September 2022, a Greenpeace investigation found that BP had failed to report massive flaring emissions from one of its projects in Iraq – equivalent to the annual emissions of over 970,000 petrol cars.

In August, a UK oil and gas body said that the windfall tax on energy firms should be scrapped by 2025 or it will have a “detrimental impact” on investment in the domestic sector.

View from India: PM launches roll-out of greener fuels on the road to net zero

IEW, India’s flagship energy event, plans to position the country as an energy transition powerhouse. The path ahead could be a green one, going by the line-up of events during the IEW, beginning with the launch of the E20 fuel. This is scheduled to be piloted in petrol pumps across various states. E20 derives its name from the actual combination; it is a blend of 20 per cent ethanol with petrol. The government has a mission to achieve a complete 20 per cent blending of ethanol by 2025. The target is probably being achieved with oil marketing companies setting up 2G-3G ethanol plants.Last August, India became home to a 2G (second generation) ethanol bio refinery, which is the first of its kind in Asia.

With sustained efforts by the government, the production of ethanol has perhaps seen a six-fold increase since 2013-14. The country’s Ethanol Blending Programme & Biofuels Programme has helped reduce 318 lakh tonnes (31.8Mt) of CO2 emissions. Another advantage is the foreign exchange (forex) savings amounting to around ?54,000 crore (540bn rupees, £5.4bn).

Such efforts may help reinforce India’s vision of Atmanirbharta or Self Reliance. “India’s energy demands are being met by four pillars. This is the increase in domestic exploration and production; besides diversifying supplies; tapping alternative energy resources and focusing on EV and hydrogen decarbonisation efforts,” said Prime Minister  (PM) Narendra Modi, while inaugurating IEW. The event, which is on in Bangalore, is also live cast on YouTube.

India has the world’s 14th largest refinery capacity. “Our vision of One Nation, One Grid is being achieved through energy terminals and re-gasification efforts. The gas pipeline network has grown from 14,000km in 2014 to the present 22,000km. In the next four-five years, the goal is to achieve 35,000 km,” explained Modi. This is an opportunity for start-ups and investors to enrich the energy landscape. 

The Union Budget 2023-2024 has provided a sum of ?35,000 crore (350bn rupees, £3.5bn) for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum and Natural Gas. “Over 60 million people visit petrol pumps across the nation every day. India’s energy agenda is inclusive, market based and climate sensitive. Our initiatives are for making energy accessible and affordable,” added Hardeep Singh Puri, Minister of Petroleum and Natural Gas.

Innovative initiatives are under way for India to achieve the net zero target by 2070. Sustainability and respect to Planet Earth form the crux of these initiatives. One such plastic neutrality effort is Unbottled, the brainchild of the Indian Oil. This a brand for sustainable garments, launched for merchandise made from recycled polyester. The firm’s retail customer attendants and LPG delivery personnel will sport uniforms made from recycled polyester (rPET) and cotton. Each set of uniform worn by the Indian Oil’s customer attendants will support the recycling of around 28 used PET bottles. It seems an interesting means of phasing out single-use plastic. PM has launched the uniforms.

Another highlight is the twin-cooktop model of the Indian Oil’s Indoor Solar Cooking System. Flagged off by Modi, this model is all set for its commercial roll-out. This indoor solar cooking solution works on both solar and auxiliary energy sources simultaneously.

In an effort to spread awareness of green fuels, PM has also flagged off the Green Mobility Rally, which features vehicles that ply on green energy sources. “Fifty per cent of power production in Karnataka comes from renewable energy. We will have renewable energy pump storage facilities in the future,” highlighted Basavaraj Bommai, the Chief Minister (CM) of Karnataka, which has the highest number of EV passenger vehicles in India. It is intended to make Karnataka a leader in EV manufacturing in India. Given that the state is home to sugarcane units, it is envisioned to focus on biofuel production. “The recently concluded Global Investors Meet is expected to bring in over 3 lakh crore (3tn rupees, £30bn) investments in green hydrogen power projects, and over 2 lakh crore (£20bn) investments in renewable energy is also expected. Maximum Power with Minimum Emission is our energy motto,” explained CM Bommai.

IEW will hopefully energise companies to work towards net zero emissions, a pledge that PM took at COP26 to cut India’s emissions to net zero by 2070. This could help the country evolve into a gas-based economy. Energy demands in India may rise as its economy scales up. This may unfold infrastructure related job openings like pipelines, terminals, supply chains and logistics, de-carbonisation and energy transmission measures. Investments could also follow. The sum of all this may help India grow into a strong energy hub in the world of global energy communities.  

India Energy Week is on from February 6-8 at the Bangalore International Exhibition Centre (BIEC). Over 30,000 delegates and 500 speakers have congregated to discuss the challenges and opportunities of India’s energy future. The participation of international energy professionals at IEW is expected to evoke dialogues with them.

Shell profits hit record £68.1bn as energy prices surge

Shell said that its core profits skyrocketed to £68.1bn ($84.3bn) in 2022, surpassing the expectations of industry experts.

This gargantuan profit haul will increase the pressure on prime minister Rishi Sunak and chancellor Jeremy Hunt to tax energy producers further, with UK households coming under increasing and relentless pressure from their astronomical bills.

Bumper profits by producers in 2022 eventually persuaded the government to launch a windfall tax, called the ‘Energy Profits Levy’, which was subsequently further strengthened by Hunt.

Shell said that it paid £1.5bn ($1.9bn) in windfall tax charges to the UK and EU.

Labour has accused Sunak of being “too weak” to stand up to oil and gas interests following the news of Shell’s profit increase.

Shadow climate change secretary Ed Miliband said: “As the British people face an energy price hike of 40 per cent in April, the government is letting the fossil fuel companies making bumper profits off the hook with their refusal to implement a proper windfall tax.

“Labour would stop the energy price cap going up in April, because it is only right that the companies making unexpected windfall profits from the proceeds of war pay their fair share.

“When it comes to oil and gas interests, Rishi Sunak is too weak to stand up for the British people.”

Lib Dem leader Sir Ed Davey, a former energy secretary, said: “No company should be making these kind of outrageous profits out of Putin’s illegal invasion of Ukraine. Rishi Sunak was warned as chancellor and now as prime minister that we need a proper windfall tax on companies like Shell and he has failed to take action.

“Families across the country are struggling to heat their homes and feed their families and this government turns round and says ‘There is nothing we can do’.

“They must tax the oil and gas companies properly and at the very least ensure that energy bills don’t rise yet again in April.”

From April this year, the energy bill for an average household will be capped at £3,000, up from the current £2,500.

Shell has also announced that it will pay a further £3.2bn ($4bn) to shareholders through a new share buyback programme and will increase dividend payments by 15 per cent.

The London-listed oil major told investors that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) leapt 53 per cent against the previous year, after energy prices were catapulted higher following the Russian invasion of Ukraine.

Adjusted earnings, including taxes, more than doubled to £32.2bn ($39.9bn). The figures are part of a debut set of results for Shell’s Wael Sawan, who took over as chief executive at the start of the year.

Shell added that core profits hit £16.6bn ($20.6bn) in the fourth quarter of 2022, although this in fact represented a 4 per cent decrease compared to the same period in 2021.

Sawan said: “Our results in Q4 and across the full year demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world. We believe that Shell is well positioned to be the trusted partner through the energy transition.

“As we continue to put our powering progress strategy into action, we will build on our core strengths, further simplify the organisation and focus on performance.

“We intend to remain disciplined while delivering compelling shareholder returns, as demonstrated by the 15 per cent dividend increase and the $4bn share-buyback programme announced today.”

Campaigners from Greenpeace targeted Shell’s headquarters in London as the profit was announced, describing the fossil-fuel giant as “profiteering from climate destruction” after its record profit haul.

Elena Polisano, senior climate justice campaigner at Greenpeace, said: “While Shell counts their record-breaking billions, people across the globe count the damage from the record-breaking droughts, heatwaves and floods this oil giant is fuelling. This is the stark reality of climate injustice, and we must end it.”

Friends of the Earth’s Sana Yusuf said: “People can see the injustice of paying eye-watering energy costs while big oil and gas firms rake in billions.

“Fairly taxing their excess profits could help to fund a nationwide programme of insulation and a renewable energy drive, which would lower bills, keep homes warmer and reduce harmful carbon emissions.”

Oil and gas firms are subject to the Energy Profits Levy, a windfall tax which increased from 25 per cent to 35 per cent in January. Its critics have said that it should go much further, much sooner.

Paul Nowak, general secretary, TUC, said: “The time for excuses is over. The government must impose a larger windfall tax on energy companies. Billions are being left on the table.

“Instead of holding down the pay of paramedics, teachers, firefighters and millions of other hard-pressed public servants, ministers should be making big oil and gas pay their fair share.”

Unite general secretary Sharon Graham said: “People will be totally aghast at the scale of Shell’s astronomical profits. Millions cannot afford to heat their homes and businesses can’t pay their fuel bills.

“Meanwhile, Shell shareholders are laughing all the way to the bank. Shell’s £5bn of dividends would go a long way towards paying for a 10 per cent wage hike for NHS workers.

“Is the government going to get real about taking on profiteering or, as usual, continue its false propaganda that it’s workers’ wage rises that are causing inflation?”

India pledges $4.3bn for clean energy projects

India has stated that “green growth” is a top priority for the country, as it earmarks 350 billion rupees ($4.3bn, £3.5bn) to invest in the nation’s energy security and green transition. 

In the announcement, Indian authorities included a focus on solar power from the Himalayan region of Ladakh and green hydrogen production.

“We are implementing many programmes for green fuel, green energy, green farming, green mobility, green buildings, and green equipment, and policies for efficient use of energy,” said finance minister Nirmala Sitharaman in her speech to Parliament. 

“These green growth efforts help in reducing carbon intensity of the economy and provide for large-scale green job opportunities,” she added.

The minister said the cash injection will be channelled through the ministry of petroleum and natural gas to help India reach its goal of net-zero emissions by 2070.

The new funds form part of the government’s $550bn (£447bn) budget aimed at promoting green industries and creating jobs ahead of the general election next year.

In her speech, Sitharaman also proposed government incentives for more reliable energy storage systems and announced a new framework for pumped storage systems for hydropower.

As part of this effort, the government pledged to invest 83 billion rupees (£819m) in electricity transmission lines which can take 13 gigawatts (GW) of renewable electricity from the sunny, sparsely populated Himalayan mountain state of Ladakh to population centres in the rest of the country.

Some of the other projects that will receive funding include programmes to incentivise the use of alternative, less-polluting fertilisers, but details of how much will be spent were unclear.

The Indian government revealed it would also be removing import taxes for components required to produce lithium-ion batteries – required for the manufacturing of electric vehicles (EV). At the same time, the government increased the custom duty on fully imported EVs from 60 per cent to 70 per cent.

The financial pledge follows last month’s announcement that the country was going to invest 174.9 billion rupees (£1.78bn) to support the production, use and export of green hydrogen, with a view to becoming a major exporter of the element.

Sitharaman called green hydrogen a “sunrise sector” and said she wants India to “assume technology and market leadership” and reduce dependence on fossil fuel imports.

All of these proposals have yet to obtain the approval of both Houses of Parliament before they can be enacted. 

India is currently the world’s third highest-emitting nation, but it has recently been striving towards decarbonising its economy. The country has set itself a goal to develop 500GW of renewable energy capacity by 2030.

‘Liquid windows’ could reduce buildings’ energy consumption

What if windows were not solid? A research team at the University of Toronto has developed a window prototype that uses a thin layer of liquid pigment between two glass panes to affect how much sunlight gets through.

The scientists were inspired by the multilayered skin of organisms such as squid. Each of these layers contains specialised organs that work together to protect the animals from sunlight and other external factors. 

The objective of the prototype is to optimise the wavelength, intensity and dispersion of light transmitted through windows. In doing so, it could offer much greater control than existing technologies while keeping costs low. 

“Buildings use a ton of energy to heat, cool and illuminate the spaces inside them,” said Raphael Kay, one of the scientists involved in the research. 

“If we can strategically control the amount, type and direction of solar energy that enters our buildings, we can massively reduce the amount of work that we ask heaters, coolers and lights to do.”


Prototypes of a multilayered fluidic system designed by U of T Engineering researchers contain several layers of channels that contain fluids with various optical properties.

Prototypes of a multilayered fluidic system designed by U of T Engineering researchers contain several layers of channels that contain fluids with various optical properties. / Raphael Kay, Adrian So

Image credit: Raphael Kay, Adrian So

Currently, most  ‘smart’ building technologies focus on automating processes, such as automatic blinds or electrochromic windows. However, these systems cannot discriminate between different wavelengths of light, nor can they control how that light gets distributed spatially. 

“Sunlight contains visible light, which impacts the illumination in the building – but it also contains other invisible wavelengths, such as infrared light, which we can think of essentially as heat,” he said.

“In the middle of the day in winter, you’d probably want to let in both – but in the middle of the day in summer, you’d want to let in just the visible light and not the heat.”

The prototype developed by Kay’s team consists of a set of flat sheets of plastic that are permeated with an array of millimetre-thick channels through which fluids can be pumped.

Customised pigments, particles or other molecules can be mixed into the fluids to control what kind of light gets through and in which direction this light is then distributed.

These sheets can be combined in a multi-layer stack, with each layer responsible for a different type of optical function: controlling intensity, filtering wavelength or tuning the scattering of transmitted light indoors. By using small, digitally controlled pumps to add or remove fluids from each layer, the system can optimise light transmission.

“It’s simple and low-cost, but it also enables incredible combinatorial control. We can design liquid-state dynamic building facades that do basically anything you’d like to do in terms of their optical properties,” Kay said.

The research team also leveraged computer models to analyse the potential benefits of covering whole buildings with these types of materials.

The findings showed that buildings that were covered with one single layer focused on modulating the transmission of near-infrared light could save about 25 per cent annually on heating, cooling and lighting energy. 

If the building were to have two layers, it could reduce its energy consumption by 50 per cent, the researchers said. 

“Globally, the amount of energy that buildings consume is enormous – it’s even bigger than what we spend on manufacturing or transportation,” said Ben Hatton, another of the team’s researchers. “We think making smart materials for buildings is a challenge that deserves a lot more attention.”

The findings of the research were published in the journal PNAS.

Why UK energy customers need to be able to make smart decisions

The relationship between UK energy suppliers and consumers must change. As well as migrating towards a smarter and more logical system for distribution and use, we need to become smart customers, using intelligent energy.

The UK energy market faces two problems. First, energy is unnecessarily valued at a commodity trading price, even if it has not been purchased and its costs of generation have not increased. Secondly, tariffs for energy vary between ever greater extremes due to imbalance between supply and demand, but become fixed when it is consumed. Neither situation is sustainable.

At the same time, the UK should seek to become as self-sufficient as possible to minimise the impact of a weaponised energy market. This will automatically make UK renewable energy more important.

UK electricity is generated by gas/oil (42 per cent), renewables (38 per cent), nuclear (17 per cent) and coal (3 per cent). Renewables, which comprise wind (26 per cent), solar photovoltaic (10 per cent), and hydro (2 per cent), are intermittent and seasonal. Gas has a simpler structure – it is imported, or domestically generated, and may be used to generate electricity or distributed by grid systems that currently reach 85 per cent of consumers in 23 million homes.

Recent energy company failures have demonstrated that fixed customer tariffs for electricity are no longer sustainable. Elexon, which oversees the strategic operation and day-to-day management of the Balancing and Settlement Code, comparing how much electricity generators and suppliers say they will produce or consume with actual volumes, reports that the normal range of traded tariffs between £121/MWh and £800/MWh has increased recently due to supply instability. This cannot be managed by raising fixed tariff prices – load levelling is also needed. Variations in tariff must be shared with consumers in the form of intelligent energy, which uses price to level load with demand. This requires smart customers, who are able to make use of variably priced energy.

Commodity pricing of energy does not usually cause undue problems, but when crises arise, it makes a nonsense of the market. Energy bought from an external market will be commodity priced, but energy generated in the UK and consumed in the UK should be priced on an internal market basis. We need an internal energy market, in which costs of generation have not changed and the energy is consumed in the UK. This price (representing some 50 per cent of our energy use) would be stable and unchanged and disconnected from the lunacy of commodity pricing.

Much of this energy may be from renewable sources and offers another reason for enlarging our installed base of renewable generation. An internal market immediately halves existing price rises. Meanwhile, gas and oil from UK sources should also be priced at internal market price if they are not sold abroad, avoiding excessive profits and much of the impact of energy prices on the cost of living.

How does a variable tariff to the home shape a smart customer? The smart meter’s time may come at last, although it may take ‘3D’ generation devices (or a separate online display or traffic light system unit) to communicate the tariff to the user or the appliances in the home. The cost of energy used is then clear to smart users and there is less need for a smart grid. Power distribution has no investment capacity to modernise let alone pay for expensive smart grid batteries.

Smart customers need to be able to avoid peak times and take advantage of low tariffs as simply as possible; initially by intervention and off-peak use, but later by domestic appliances, electric vehicles and other large loads being able to avoid high-tariff periods automatically via add-ons, smart sockets or ‘smart’ functionality. In smart customers’ homes, a low-energy mode for buildings may be introduced, with light-current rings operating but high-current rings switched off or load-restricted when tariffs are high.

Variable energy tariffs make batteries in buildings highly desirable. Time-shifting means that low-cost power may be stored, then used when prices are high. Intermittent power from renewable sources and on-grid/off-grid installations can be bridged. Smart customers with batteries can avoid power cuts entirely as well as being able to consume their own renewable energy.

An additional benefit may be achieved if the smart customer has extra battery capacity. Low-cost nighttime energy could be fed back to the grid during the day when the price is much higher. If the amount of energy and the price differences are well chosen, a customer’s net energy bill may be zero or even negative. Given the spreads between low and high tariffs, those who can load level may not have to pay for energy at all.

The cost of batteries in buildings may be carried by the energy company and their depreciation cost can form part of the smart energy bill. Batteries tend to be lithium ion these days, and while new batteries would be economic in this role, post EV batteries may be repurposed and reused. Nickel iron batteries, which have nearly infinite life, could be considered too.

The smart customer’s relationship with heat must change as heat can now be stored in heat batteries. Silent, fuel-cell-based combined heat and power (CHP) units may make efficient use of gas grids and, if used in conjunction with heat batteries, allow both power and heat to be used efficiently. Ground-source heat pumps make sense when no gas is available; when gas is, CHP solutions become viable. There is a gas/fuel cell issue to be solved first, where fuel cell design must cope with such gas as is available.

We must become smarter users of energy and our energy pricing must be linked to the actual cost of energy. Self-learning AI dashboards showing real-time energy usage will change how a smart customer treats energy. Heat batteries will allow combined heat and power to enter the market and free energy may become a benefit for smart customers who use batteries wisely. An internal energy market, smart customers and intelligent energy is the path we must now take.

Mark Scibor-Rylski FIET is a committee member of the IET Innovation Management Technical Network. Views expressed in this column are personal, based on his work with the University of Exeter in Cornwall launching and developing eco-commercial renewables companies in a county which he believes offers an ideal laboratory for future energy solutions.

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