UK energy price cap vulnerable to spikes

A UK energy price cap based on wholesale markets could still result in substantial changes to tariffs, especially if the 2016-17 winter’s price spike is repeated.

The UK’s Conservative Party, which polls put on course to win the upcoming general election, has proposed an energy price cap to be set by the regulator. The cap is likely to be based on prices at the UK’s NBP gas hub, a trading point for wholesale gas.

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Vienna walkout in the offing?

Are the odds on a pre-planned spontaneous walkout by the Saudi delegation in Vienna narrowing?

Some points to consider.

First, on 25 November an “Opec delegate” told Argus that this week’s meeting of ministers might fail to reach an output restraint deal. In subsequent days that message has been reinforced, with Saudi oil minister Khalid al-Falih telling reporters at the weekend that the market is rebalancing without Opec action and that Riyadh has other options.

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Keep calm and carry on…

It was a strange mix of moods at the Marrakesh climate talks today, following Donald Trump’s victory in the US presidential election.

Some were defiant. Others despaired. And some were going about their business as if nothing had happened.

This is odd given that president-elect Trump has threatened to “cancel” the Paris climate agreement, which saw 195 nations agree to phase out the use of fossil fuels — an agreement that the Marrakesh talks are now trying to put into action.

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