Ineos Energy chairman blasts UK’s Net Zero dash and warns of power cuts and inflation
THE chairman of Ineos Energy has attacked the UK’s Net Zero dash, saying it risks inflation and inevitable “power cuts and strain on the grid”.
The chemicals group has been investing in oil and gas wells and liquefied gas around the world, including $3billion of assets in the US.
However, Brian Gilvary said that its investments would not “be economically attractive in the UK” due to Government policy shifts.
He said the UK’s fortunes could be changed if the Government’s newly formed Great British Energy followed the US and China’s lead and embraced all energy on its doorstep.
Currently UK electricity prices are among the world’s dearest.
Writing in the company’s magazine INCH, Mr Gilvary wrote: “A balanced energy strategy needs to run at the same pace as the energy transition because it helps industry remain competitive, avoids increasing energy costs and provides a stable flow of tax for the Exchequer.”
Energy Secretary Ed Miliband is ploughing ahead with his Clean Power push by 2030, which will cost £40billion a year and will rely on building more infrastructure — including pylons, wind farms and undersea cables — than has been done in generations.
Mr Gilvary said there was a risk without subsidies that the policy would prove to be “expensive and inflationary”.
Analysts Cornwall Insight this week predicted only two-thirds of energy requirements would likely be met under Mr Miliband’s plan, risking a shortfall.
Mr Gilvary said the UK’s energy security requires reliable “baseload energy” — the minimum amount required to meet demand.
He added volatile wind and solar power could not be relied upon until the storage of electricity and green hydrogen was properly developed.
And, he warned, that is “economically decades away”.
He said: “Without baseload energy assured, the consequences of power cuts and strain on the grid are inevitable.”
Earlier this month analysts said the grid was within a “whisker” of a blackout and energy giant Centrica said the UK had less than a week’s supply of gas in storage.
DIVESTÉE LAUDER
BEAUTY giant Estée Lauder could be set for its own make-over.
The US cosmetics firm is reportedly reviewing its portfolio of brands — including Clinique, which has actress Emilia Clarke as its ambassador, Tom Ford and the Estée Lauder brand itself — and some could be sold off.
It is working with advisers at Evercore on the shake-up, Bloomberg reported.
The company has been struggling after losing customers to new start-ups which target younger shoppers on social media.
The review follows Estée Lauder naming company veteran Stéphane de La Faverie as its new CEO.
HALFORDS BOOST
SHARES in Halfords pedalled up yesterday as it surprised investors with a boost to profit forecasts.
It said a surge in bike buys for Christmas helped like-for-like sales to rise by 13.1 per cent last month.
Cold weather also spurred strong sales of de-icer and other car products.
The bike retailer and garages firm expects under-lying profits to be as high as £37million, well above analyst estimates of £28million.
Its shares rose by 13 per cent yesterday.
IT’S A RUFF TIME
PETS AT HOME has warned of a “subdued market” after retail sales faltered in the run-up to Christmas.
The firm previously said a pandemic “baby boom” of furry friends was coming to an end, impacting its stores.
Its retail sales fell by 2.4 per cent in its most recent quarter after “particularly weak footfall from October”.
But revenues in its vet business have risen by more than a fifth to offset that.
The firm’s caution adds to evidence showing a slump in confidence after the Budget.
SCANNER FIRM DATA HACK BID
AN Engineering firm behind baggage-screening kits and bomb-detectors has become the latest British company to fall victim to a cyber attack.
Smiths Group yesterday confirmed unauthorised access to its systems.
The FTSE 100 firm said it was “currently managing” the hack and drafted in cybersecurity experts. Its shares fell by 2 per cent, valuing the firm at £6.32billion.
Smiths did not disclose whether information had been accessed, but said it “rapidly isolated” affected systems and had launched business continuity plans.
It comes after attacks last year on Serco, Royal Mail, Transport for London and a hack of Blue Yonder software which impacted supermarkets.
Government statistics say half of businesses have experienced some form of cyber security breach or attack in the past 12 months.
Phishing is the most common.
BOEING has revealed it lost nearly a billion dollars a month last year, a total of $11.8billion (£9.49billion).
But the aeroplane-maker still saw shares rise by 4.4 per cent yesterday, with investors encouraged by its optimism it can meet targets for its 737 airliner.
AMAZON IN TWIST
AMAZON may face a competition probe overseen by its former boss — in an awkward twist for the Government.
The Competition and Markets Authority (CMA) has recommended an investigation into Microsoft and Amazon’s cloud computing services, as choice of providers in the £9billion sector is limited.
It comes just a week after ex-Amazon UK head Doug Gurr was made CMA chair in a bid to aid Government growth plans.