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FIRMS’ CRISIS TALKS WITH TRUSS BACKER
ENERGY GIANTS IN ROUNDTABLE TALKS WITH REES-MOGG EXCLUSIVE
NICHOLAS EARL SENIOR minister and Liz Truss backer Jacob Rees-Mogg has been meeting with oil and gas companies in a bid to boost North Sea supplies amid an ongoing energy crisis. City A.M. understands the Brexit opportunities minister held talks with energy giants including Shell over recent days, ahead of a looming winter crisis that will see energy bills spike to new record levels amid fears of supply shortages and blackouts. There is confusion over whether Rees-Mogg (right) met oil and gas companies in his role as a minister or as a supporter of Liz Truss – with multiple government departments refusing to comment. Liz Truss’ team has claimed the meetings were set up by civil servants, and were not linked to her campaign, however it is unclear why the Brexit opportunities minis-
ter would be holding the meeting instead of energy secretary Kwasi Kwarteng or the Chancellor Nadhim Zahawi. City A.M. also understands Liz Truss – who is expected to be named Prime Minister next month – is keen to ramp up domestic energy generation as quickly as possible to secure the UK’s energy independence. There are escalating concerns of supply shortages this winter, with the Department for Business, Energy and Industrial Strategy (BEIS) factoring in potentially four days of blackouts this winter as an extreme worstcase scenario. Rees-Mogg is also believed to be looking to seal deals with energyrich allies like Norway. Wholesale prices have spiked in recent weeks to new records across Europe, with Russia squeezing supplies into the troubled continent, cutting Nord Stream 1 gas flows to 20 per cent of capacity. Meanwhile, Ofgem
has finally unveiled the energy price cap for October, announcing that average energy bills will soar 80 per cent to £3,549 per year in just five weeks’ time. Energy specialist Cornwall Insight predicted the cap will climb over £6,000 next year, peaking at £6,616 next April. Offshore Energies UK described the ongoing talks with ministers as a “responsible action by what could be an incoming administration to consult with the energy industry at a time of crisis”. The industry body will publish a new economic report next week revealing that the UK continental shelf still contains as much as 15bn barrels of oil – enough for 15 years of domestic consumption, more than previous forecasts suggesting there were eight years of supplies left. However, further North Sea oil and gas exploration requires a fresh licensing round, which is dependent on defining new climate regulations. It was expected this winter, but has been delayed amid the Conservative leadership election.
CARNIVAL RETURNS Revellers return to Notting Hill’s streets JAMES SILVER NOTTING HILL carnival returned to the streets of west London this weekend for the first time since 2019. London mayor Sadiq Khan said he was “really pleased” that carnival was
back but warned that even the festival was not immune to cost of living issues. “We are seeing those who want to have floats, who want to have sound systems, pulling out because they can’t afford to pay their bills.”
Kebab shops skewered by rising energy bills warns UK’s takeaway association NICHOLAS EARL HUNDREDS of independent takeaway owners have urged the government and both Conservative leadership candidates to offer more support to tackle skyrocketing energy bills. In an open letter, they have urged Westminster to act immediately to
ensure they survive the winter, arguing that the restaurants are more than just businesses, but are also culturally important. It warned that losing more fish and chip shops and curry houses would be “losing part of what makes us British”. The open letter was signed by over 750 takeaway restaurants, and was
backed by the British Takeaway Campaign – which represents the nation’s independent takeaway industry. It has called for grants for small businesses to cover the immediate cost of energy bills which could increase as much as
eightfold in the coming months. Unlike households, businesses are not protected from wholesale costs by an energy price cap, and bear the brunt of market prices with long term contracts agreed
with suppliers. The open letter also pushes for VAT cuts, business rate rebates and greater forbearance from HMRC in agreeing repayment plans. Many restaurants supported by the British Takeaway Campaign, including some owned by the Campaign’s board members, have had to shut down in recent weeks.
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