Borrowing power – Sharewared http://sharewared.com/ Wed, 21 Sep 2022 00:41:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sharewared.com/wp-content/uploads/2021/06/icon-2021-06-29T134115.656-138x136.png Borrowing power – Sharewared http://sharewared.com/ 32 32 The Fed continues to focus on the U.S. economy as the world heads into a recession it could contribute to https://sharewared.com/the-fed-continues-to-focus-on-the-u-s-economy-as-the-world-heads-into-a-recession-it-could-contribute-to/ Tue, 20 Sep 2022 23:24:25 +0000 https://sharewared.com/the-fed-continues-to-focus-on-the-u-s-economy-as-the-world-heads-into-a-recession-it-could-contribute-to/ The US Federal Reserve wields an outsized grip on global economies – yet it acts, in some ways, as if they don’t really matter. Its power is mainly due to the US dollar dominancewhich has soared in recent months as the Fed aggressive interest rate hikes made the greenback more attractive to investors. But this […]]]>

The US Federal Reserve wields an outsized grip on global economies – yet it acts, in some ways, as if they don’t really matter.

Its power is mainly due to the US dollar dominancewhich has soared in recent months as the Fed aggressive interest rate hikes made the greenback more attractive to investors. But this has a downside for other countries because it fuels inflation, increases the cost of borrowing and increase the risk of a global recession.

If you only paid attention to the words of Fed Chairman Jerome Powell, however, you would probably have no idea what is going on. He hasn’t said a word in his public speeches about the significant risks to the global economy as the Fed and other central banks raise interest rates to keep inflation in check – including during their meetings at the end of September.

It might seem a little odd that the Fed seems so jaded about the global economy it arguably leads. Yet as finance researcherI think it makes perfect sense – although there are risks.

The Fed’s domestic stance

The Federal Reserve is responsible for focusing on the US economyand he takes this job very seriously.

While central banks are aware of all the global economic data, they are focusing on their own economies, helping them do what is best for their own nations. In the United States, this means that the Fed is focused on improving the American economy by
stable prices and full employment.

Therefore, when the U.S. economy slows down too quickly and people lose their jobs, like at the start of the pandemicthe fed lowers interest rates – regardless of the impact on other countries. Similarly, when the economy is growing but consumer prices are rising too fast, the central bank raises interest rates.

And its global impact

Yet it is inevitable that the policies of the Fed will influence the economies, businesses and citizens of virtually every country in the world.

While all central banks influence the rest of the world, the Fed has a much greater impact due to the size of the US economy – it remains by far the largest in absolute terms – and the importance of the US dollar in international markets and trade.

About half of the world’s international debt is denominated in dollar, which means that countries must pay interest and principle on what they borrow in dollars. The dollar soared almost 15% this year against a basket of foreign currencies, mainly due to the Fed’s interest rate hikes that began in March. This means that it is on average 15% more expensive to finance these dollar-denominated debts – and for some countries this could be much higher.

In addition, about 60% of all world foreign exchange reserves – this is the money that central banks hold to protect the value of their own currencies – are in dollars. And since most major commodities As oil and gold are denominated in dollars, a stronger dollar makes everything much more expensive for businesses and consumers in all countries.

Finally, when US interest rates are high relative to those in other countries, more foreign investment flows into the United States to get more bang for their buck. Since there is not much money to spend, it exhausts investment from other savings, especially emerging markets. And that means they have to raise interest rates to keep foreign direct investment flowing into their countries, which can hurt their local economies.

Risks in a globalized world

Unfortunately, focusing solely on the domestic economy carries its own risks.

It may sound cliché, but we live in a globalized and interconnected world – something powerfully demonstrated by the COVID-19 pandemic and time and time again supply chain issues. wavy across the world. American companies depend on other countries for their supplies, their workers and their consumers.
This means that even if the Fed achieves a proverbial soft landing and is able to reduce inflation without causing a recession, a global slowdown could still eventually reach US shores. This could threaten much of the Fed’s success if the global slowdown results in international instability or food insecurity.

So while I think the Fed is right to focus on the U.S. economy and raise rates at its September 21, 2022 meeting as much as it deems necessary, I will be looking closely at the economic projections for the central bank. If the data shows that the US economy’s inflation problems are easing, perhaps the Fed can start thinking a little less about what’s going on in its own backyard and more about the impact of its policies on the rest of the world.

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Nigeria deserves more gas reserves – Osinbajo https://sharewared.com/nigeria-deserves-more-gas-reserves-osinbajo/ Sun, 18 Sep 2022 23:58:20 +0000 https://sharewared.com/nigeria-deserves-more-gas-reserves-osinbajo/ This week, European Commission President Ursula von der Leyen did something that would probably have been considered the opposite of democracy just a few years ago. She proposed that governments put a cap on the revenues of certain energy producers and add a windfall profit for the oil majors.Called “solidarity contribution” or “crisis contribution”, the […]]]>

This week, European Commission President Ursula von der Leyen did something that would probably have been considered the opposite of democracy just a few years ago. She proposed that governments put a cap on the revenues of certain energy producers and add a windfall profit for the oil majors.
Called “solidarity contribution” or “crisis contribution”, the objective of the exceptional tax is the same as that of the revenue ceiling: to manage energy expenditure in a context of galloping inflation and obtain additional money to distribute , according to the plan, between those who need it most.
Like all great plans, however, unintended consequences abound with this one, and one of the most serious is the discouragement of oil and gas investment at a time when global oil and gas investment is already below what that they should be in light of demand projections.
JP Morgan’s head of global energy strategy said so this week in an interview with Bloomberg.
“If you’re planning your investment budget, you have to think twice now that you have a new risk,” Malek told Bloomberg.
“It encourages the majors to return cash to shareholders when they use that free cash flow that could have been used to invest.”
According to its plans, the EU is seeking to ‘raise’ some $140 billion from windfall taxes on non-gas power generators and oil, gas and coal companies for their ‘extraordinary record war-benefiting profits’. and on the backs of consumers”, to quote Von der Leyen.
Industry reaction was swift: Austria’s OMV said the consequences of such measures could be huge, adding that it was unfair to base the proposed windfall levy on oil companies’ profits over the course of the year. of the past three years, as these were not normal times, Reuters reported, citing CEO Alfred Stern.
“We will keep an eye on that because it can already have a huge impact,” Stern told the media, noting however that the exact impact was difficult to glean because the proposal has not yet been fleshed out.
In Per von der Leyen’s State of the Union address, in which she listed the windfall tax among measures to deal with the energy crisis, the idea is to tax corporations oil and gas companies with 33% of current year earnings 20% higher than the company’s average salary over the past three years.
OMV’s Stern noted that the past three years included two pandemic years in which many companies in the oil and gas industries struggled to stay afloat, let alone turn a profit, as oil prices plummeted at $25 a barrel.
“The big oil, gas and coal companies are also making huge profits. So they have to pay a fair share – they have to give a crisis contribution,” the European Commission president said in her speech.
If what JP Morgan’s Malek predicts is correct, it would mean less energy security for the future with less new oil and gas production outside of Russia.
The key, Malek told Bloomberg, was whether the levy would stick around for years or be quickly removed once the money was collected.
“It’s not the absolute number, it’s the uncertainty, the unpredictability of it,” he said. “There is a risk that it will become recurrent.”
Von der Leyen assured the audience of his speech that the additional taxes were “all emergency and temporary measures”, adding that for long-term energy security the EU must reduce its energy consumption.
Reuters noted in its report on OMV’s reaction to the speech that analysts said the most likely targets of the new tax would be refiners in Europe because there is little upstream activity in the EU.
Yet integrated energy companies have integrated policies, and an additional tax on European refining may well impact future mining projects in, say, the Gulf of Mexico.
It should be noted that at present, the exceptional tax is only a proposal. It is certainly a top-down proposal, but it still needs to be approved by all EU members. According to an FT report on the subject, not everyone agrees with all the measures.
The report also quotes S&P Global’s executive director for the gas industry at the EMA, Laurent Ruseckas, as saying that the proposals put forward by Von der Leyen were “all extraordinarily complex” and “would be impossible to develop and implement. in time for winter, even if there was a political consensus behind them – which there is not.
“It makes sense to agree on EU-wide targets and measures, but without allowing national flexibility on how to achieve this we risk breaking the markets we are trying to fix,” said a European diplomat at the FT.
All of this suggests that Big Oil could still avoid the additional tax, although given its reputation as the big bad of climate change, the additional tax on the industry may be the only measure to receive broad support.

By: Irina Slav

Slave reports for Oilprice.com

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Fire Emblem Engage May Share DNA With Tokyo Mirage #FE Sessions https://sharewared.com/fire-emblem-engage-may-share-dna-with-tokyo-mirage-fe-sessions/ Fri, 16 Sep 2022 21:10:00 +0000 https://sharewared.com/fire-emblem-engage-may-share-dna-with-tokyo-mirage-fe-sessions/ When a Nintendo Direct livestream event was announced for September 13, 2022, fans were expecting news of a new game in the tactical role-playing game series. Fire emblem. Three full years after 2019 Fire Emblem: Three Houses, a new game in the main series seemed like a safe bet. This announcement came, but Fire Emblem […]]]>

When a Nintendo Direct livestream event was announced for September 13, 2022, fans were expecting news of a new game in the tactical role-playing game series. Fire emblem. Three full years after 2019 Fire Emblem: Three Houses, a new game in the main series seemed like a safe bet. This announcement came, but Fire Emblem Engage, surprised fans. Although it features classic tactical gameplay and throwback classes and weapons, Fire Emblem Engage looks less similar to most major lines fire emblem games than it does for the derivative title Tokyo Mirage Sessions #FE.

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Fire Emblem Engagewhich was the first title announced in a Nintendo Direct that also included the long-awaited reveal of the title for The Legend of Zelda: Tears of the Kingdom, will follow the standard fire emblem formula of an army of recruitable units in a fantasy-inspired world against the threat of an evil dragon. However, rather than telling a completely new story, Fire Emblem Engage will bring characters from previous games as player-summoned “emblems”. Engage is the first title in the main series to include this summoning mechanic, and he may have been inspired by Tokyo Mirage Sessions #FEit is Mirage system holder.

RELATED: The Nintendo Switch Has a Busy Start to 2023


Both involve summoning classic Fire Emblem characters

Released in 2015 in Japan and 2016 worldwide, Tokyo Mirage Sessions #FE is the result of a collaboration between Nintendo and Character Atlus developer. Often described as “a fusion between Character and Fire Emblem,” the game centered around a group of teenagers who could each summon a character from a fire emblem game like their “Mirage” in combat. The characters themselves didn’t have strong combat abilities, with most fights being fought by Mirages. fire emblem characters appearing in-game as Mirages included Chrom, Tharja, and Virion from Fire Emblem Awakening, and Caeda, Cain, Draug and Navarre from Fire Emblem: Shadow Dragon and the Blade of Light.

In Fire Emblem Engage, characters can use the Engage system to summon emblems by putting on rings associated with the past fire emblem characters. Since rings are portable items, it’s possible that characters can summon several different items. fire emblem heroes, rather than being limited to a single Mirage as in Tokyo Mirage Sessions #FE. In addition, Tokyo Mirage Sessions #FE only featured characters from Awakening and Shadow Dragon and the Blade of Light, while the Emblems in Engage are confirmed to cover a lot of fire emblem securities. The official trailer for Fire Emblem Engage showed Marth’s invocation of the aforementioned shadow dragon, Celica of Fire Emblem Echoes: Shadows of Valentia, and Sigurd of Fire Emblem: Genealogy of the Holy War.

Engage seems to share the colorful aesthetic of the Tokyo Mirage Sessions

Contrary to fantasy Fire Emblem, Tokyo Mirage Sessions #FE takes place in modern-day Tokyo. The playable characters are all involved in the entertainment industry and include idol singers, actors, and the host of a microwave-themed cooking show. Due to the emphasis on music and performance, the human characters and their Mirages wear bright and colorful costumes. Most playable characters have multiple outfits that can be unlocked and worn both in battle and while exploring dungeons. Moreover, the fire emblem Mirages received redesigns transforming them from relatively normal-looking humans into elaborate Persona-like characters.

While the emblems in Fire Emblem Engage seem to retain their standard look, fans have noted that the game has a brighter and more colorful look compared to previous ones fire emblem securities. The protagonist Alear, a divine dragon, has red and blue hair parted in the middle and heterochromatic eyes. Additionally, Alear and other characters can take on new, more elaborate appearances when they borrow power from their summoned heroes. This Mirage Sessions-the reminiscent aesthetic is courtesy of illustrator Mika Pikazo, who previously designed the avatars of several top VTubers.

RELATED: Everything in Fire Emblem Engage God’s Edition

Fire Emblem Engage May Feature Returning Antagonists

The heroes of Tokyo Mirage Sessions teamed up with their Mirages to battle a series of antagonists tied to their past. In the end, they discovered an imminent, global threat that posed a danger to all of Tokyo. These antagonists were primarily comprised of human characters paired with antagonistic Mirages – villainous characters from Fire Emblem: Awakening and Fire Emblem: Shadow Dragon and the Blade of Light. These included the evil King Gangrel, the Dark Priest Gharnef, and ultimately Medeus, the Dark Dragon whom Hero-King Marth defeated at the end of the very first fire emblem Title.

Although it has not yet been confirmed if the antagonists of the previous fire emblem the titles will return in Fire Emblem Engage, it certainly seems likely. The game’s first trailer mentions the threat of the “Fell Dragon” as the main evil that Alear and their companions must face. Although the character is not named in the trailer, “Fell Dragon” is an epithet frequently used to refer to Grima, the main antagonist of Fire Emblem Awakening. If Grima is indeed the threat that threatens the Elyos country, some of his loyal humans could also appear, such as Validar.

Engage also resembles other Fire Emblem properties

While the similarities between Fire Emblem Engage and Tokyo Mirage Sessions #FE are clearly clear, Mirage sessions is not the only one fire emblem fallout that may have influenced the final title of the main series. The concept of summoning characters from previous fire emblem titles to help new characters protect a new land have also appeared in Fire Emblem Warriors, a spin-off developed in collaboration between Nintendo and Koei Tecmo. As Engage, Warriors included characters from several fire emblem titles, although Shadow Dragon and the Blade of Light, Awakening, and Fates received the most representation.

Fans have also noted similarities between Fire Emblem Engage and the mobile app Fire Emblem Heroes. In Hero, players take on the role of the summoner, who can summon characters from all previous fire emblem titles – including Mirage sessions – to help protect the kingdom of Askr. Fire Emblem Heroes launched in 2017 and is still going strong. Recently, characters from another musoustyle fallout, Fire Emblem Warriors: Three Hopes, have been added to the game. Alear and the other Engage the protagonists should appear in Hero at some point over the next few months.

It’s likely fans won’t know the true level of similarity between Tokyo Mirage Sessions #FE and Fire Emblem Engage until more information is revealed about this latest game. With Engage released in January 2023, most fans are predicting that several more trailers will be released before the game launches. While waiting for new information, fans are eagerly speculating which fire emblem characters can appear as summonable allies in Fire Emblem Engage. Considering the similarities between the two games, it’s even possible that the modern heroes of Tokyo Mirage Sessions #FE could make an appearance.

Fire Emblem Engage will be released on January 20, 2023 on Nintendo Switch.

MORE: Fire Emblem: Building the Three Lords of Houses in Dungeons and Dragons

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Dividend Investors: Don’t Be Too Quick To Buy Power Root Berhad (KLSE:PWROOT) For Its Upcoming Dividend https://sharewared.com/dividend-investors-dont-be-too-quick-to-buy-power-root-berhad-klsepwroot-for-its-upcoming-dividend/ Fri, 09 Sep 2022 22:38:30 +0000 https://sharewared.com/dividend-investors-dont-be-too-quick-to-buy-power-root-berhad-klsepwroot-for-its-upcoming-dividend/ Regular readers will know we love our dividends at Simply Wall St, which is why it’s exciting to see Berhad root power (KLSE:PWROOT) is set to trade ex-dividend in the next four days. The ex-dividend date is one business day before the record date, which is the deadline by which shareholders must be present on […]]]>

Regular readers will know we love our dividends at Simply Wall St, which is why it’s exciting to see Berhad root power (KLSE:PWROOT) is set to trade ex-dividend in the next four days. The ex-dividend date is one business day before the record date, which is the deadline by which shareholders must be present on the books of the company to be eligible for payment of a dividend. The ex-dividend date is important because the settlement process involves two full business days. So if you miss this date, you will not be on the company’s books as of the record date. This means you will need to buy Power Root Berhad shares by September 14 to receive the dividend, which will be paid on October 12.

The company’s next dividend payment will be RM0.03 per share, and over the past 12 months the company has paid a total of RM0.054 per share. Looking at the last 12 months of distributions, Power Root Berhad has a yield of around 3.8% on its current price of MYR 2.06. We love to see companies pay out a dividend, but it’s also important to make sure that laying the golden eggs doesn’t kill our golden hen! Therefore, readers should always check if Power Root Berhad was able to increase its dividend or if the dividend could be reduced.

Check out our latest analysis for Power Root Berhad

If a company pays out more dividends than it has earned, the dividend may become unsustainable – a less than ideal situation. Power Root Berhad paid out more than half (68%) of its profits last year, which is a regular payout ratio for most companies. Still, cash flow is usually more important than earnings in assessing the sustainability of dividends, so we always need to check whether the company has generated enough cash to pay its dividend. Power Root Berhad paid out more free cash flow than it generated – 126%, to be precise – last year, which we believe is relatively high. It’s hard to consistently pay more money than you generate without borrowing or using company money, so we wonder how the company justifies this level of payment.

While Power Root Berhad’s dividends were covered by the company’s reported earnings, cash is a bit more important, so it’s not nice to see that the company didn’t generate enough cash to pay its dividend. . Cash is king, as they say, and if Power Root Berhad repeatedly pays dividends that are not well covered by cash flow, we would consider that a warning sign.

Click here to see the company’s payout ratio, as well as analysts’ estimates of its future dividends.

KLSE:PWROOT Historic dividend September 9, 2022

Have earnings and dividends increased?

Companies with declining profits are tricky from a dividend perspective. If business goes into a recession and the dividend is cut, the company could see its value drop precipitously. So we’re not too thrilled that Power Root Berhad’s revenue has declined by 4.3% annually over the past five years.

Many investors will gauge a company’s dividend yield by evaluating how much dividend payouts have changed over time. Power Root Berhad has recorded dividend growth of 9.0% per annum on average over the past 10 years. It’s interesting, but the combination of a growing dividend despite falling profits can usually only be achieved by paying out more of the company’s profits. It can be valuable to shareholders, but it can’t last forever.

The essential

Is Power Root Berhad an attractive dividend-paying stock, or is it best left on the shelf? Power Root Berhad had an average payout ratio, but its free cash flow was lower and earnings per share declined. Overall, it doesn’t seem like the most suitable dividend-paying stock for a long-term investor.

However, if you are still interested in Power Root Berhad and want to learn more, it will be very useful for you to know what risks this title faces. For example, we found 1 warning sign for Power Root Berhad which we recommend you consider before investing in the company.

A common investment mistake is to buy the first good stock you see. Here you can find a complete list of high yielding dividend stocks.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Calculation of discounted cash flows for each share

Simply Wall St performs a detailed calculation of discounted cash flow every 6 hours for every stock in the market, so if you want to find the intrinsic value of any company, just search here. It’s free.

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Britain’s new leader Liz Truss finalizes huge electricity subsidy plan https://sharewared.com/britains-new-leader-liz-truss-finalizes-huge-electricity-subsidy-plan/ Wed, 07 Sep 2022 16:25:00 +0000 https://sharewared.com/britains-new-leader-liz-truss-finalizes-huge-electricity-subsidy-plan/ British Prime Minister Liz Truss sits next to House of Commons Leader Penny Mordaunt and Health Secretary Therese Coffey as she attends her first Prime Minister’s Questions in the House of Commons in London, UK Britain, September 7, 2022. British Parliament/Jessica Taylor/Handout via REUTERS Join now for FREE unlimited access to Reuters.com Register Truss will […]]]>

British Prime Minister Liz Truss sits next to House of Commons Leader Penny Mordaunt and Health Secretary Therese Coffey as she attends her first Prime Minister’s Questions in the House of Commons in London, UK Britain, September 7, 2022. British Parliament/Jessica Taylor/Handout via REUTERS

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  • Truss will announce an energy support plan on Thursday
  • The new Prime Minister rules out the exceptional tax on electricity companies
  • Pound falls to lowest since 1985 against US dollar
  • Kwarteng says borrowing will be higher
  • BoE says support for energy could help calm inflation

LONDON, Sept 7 (Reuters) – Britain’s new Prime Minister Liz Truss on Wednesday prepared the final details of a plan to tackle soaring energy bills, which is expected to curb inflation but add more than 100 billion pounds (115 billion dollars) to the borrowings of the country. .

On her first full day as British leader after replacing Boris Johnson, Truss told parliament she would support businesses and households as they prepare for a recession set to begin later this year.

The pound has fallen to its lowest level against the US dollar since 1985, in part due to investor concerns over the scale of the debt Britain will have to sell to fund the energy support plan and cuts taxes that Truss has also promised.

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A source close to the situation told Reuters that Truss is considering freezing energy bills in a plan that could cost up to £100billion, a major reversal from his rejection of ‘handouts’ at the start of the Conservative Party leadership campaign.

Deutsche Bank said energy price support and promised tax cuts could cost £179billion, around half of Britain’s historic pandemic spending surge that has dealt a blow to the country’s public finances .

Truss rejected demands from the opposition Labor Party to fund part of the spending by raising taxes on energy companies.

“I’m against a windfall tax. I think it’s a bad thing to discourage companies from investing in the UK,” Truss told lawmakers.

She must detail the energy support plan to Parliament on Thursday.

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His finance minister, Kwasi Kwarteng, also on his first full day on the job, said borrowing would be higher in the short term to support households and businesses and fund tax cuts. Read more

“We need to be decisive and do things differently. That means relentlessly focusing on how we unlock business investment and grow the size of the UK economy, rather than how we redistribute what’s left,” he told business leaders.

The pound fell to its lowest level against the dollar since 1985 at $1.1407 and also lost nearly 1% against the euro.

While the fall in the pound could add to inflationary pressures in the economy, the planned price freeze plan should help ease the cost of living pressure on consumers, which was shaping up to be the most severe in decades. decades.

BoE chief economist Huw Pill said the plan could slow inflation – which topped single digits in July – although it was too early to say what the implications would be for the series of price hikes. central bank interest rate. Read more

The BoE forecast in August that inflation would exceed 13%, and some economists have recently said it could exceed 20% if gas prices – pushed up by the Russian invasion of Ukraine – remain high.

Pill also said the BoE would not allow soaring government spending to fuel demand in the economy to the point of driving up inflation.

Nonetheless, investors reduced their bets on a 75 basis point rate hike in the BoE’s next scheduled monetary policy announcement on September 15 to 60% from nearly 80% earlier on Wednesday. Yields on two-year UK government bonds also fell.

Kwarteng met with BoE Governor Andrew Bailey and told him that “independence is really the cornerstone of how we run the economy”, comments that appeared to be aimed at reassuring investors that the new government would not put pressure on the central bank.

At the start of the Conservative Party leadership campaign, Truss said the government should set a “clear direction” for monetary policy, although she later adopted a less interventionist tone.

Kwarteng said he and Bailey would meet regularly, initially twice a week, to coordinate economic support.

($1 = 0.8721 pounds)

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Additional reporting by the UK office Writing by William Schomberg Editing by Hugh Lawson

Our standards: The Thomson Reuters Trust Principles.

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Save Rural Arkansas https://sharewared.com/save-rural-arkansas/ Sun, 04 Sep 2022 06:56:53 +0000 https://sharewared.com/save-rural-arkansas/ The Great Depression slowed economic progress across the country to a breakneck pace. As recently as the mid-1930s, nine out of 10 rural homes in the United States had no electricity. According to the National Rural Electric Cooperative Association: “Farmers milked cows by hand in the dim light of a kerosene lamp, and families relied […]]]>

The Great Depression slowed economic progress across the country to a breakneck pace. As recently as the mid-1930s, nine out of 10 rural homes in the United States had no electricity.

According to the National Rural Electric Cooperative Association: “Farmers milked cows by hand in the dim light of a kerosene lamp, and families relied on the wood-burning stove and washboard for cooking and cleaning. The unavailability of electricity in rural areas has kept their economies entirely dependent. Factories and businesses, of course, preferred to locate in towns where electricity was easily acquired.

“For many years the power companies ignored rural areas. The first official federal government action pointing the way to today’s rural electrification program came with the passage of the Tennessee Valley Authority Act in May 1933 This act authorized the TVA council to construct transmission lines to serve “farms and small villages not otherwise supplied with electricity at reasonable rates”.

It had long been rumored that President Franklin D. Roosevelt was considering creating an Arkansas River Valley Authority, but encountered strong opposition from powerful Democratic Senator Joe T. Robinson of Arkansas. Robinson was close to Arkansas Power & Light Co. founder Harvey Couch, who did not want government-subsidized competition.

On May 11, 1935, Roosevelt signed Executive Order No. 7037, establishing the Rural Electrification Administration. A year later, the Rural Electrification Act was passed by Congress and the REA loan program began.

NRECA notes, “Within months, it became apparent to REA officials that established, investor-owned utilities were not interested in using federal loan funds to serve sparsely populated rural areas. Loan applications from agricultural cooperatives poured in, and REA soon In 1937, the REA drafted the Electric Cooperative Corporation Act, a model law that states could pass to permit the formation and operation of nonprofit electric cooperatives. consumer-owned profit.

“In the four years following the end of World War II, the number of rural electrical systems doubled, the number of consumers connected more than tripled, and the kilometers of live lines increased more than fivefold. In 1953, more 90 percent of US farms had electricity.Today, 99 percent of farms nationwide have electric service.

Even though Arkansas had a population of 1.95 million in 1940, the vast majority of rural Arkansans lacked electric service. In 1937, Governor Carl Bailey had enacted Act 342 to provide a legal basis for electric cooperatives to be incorporated. The state’s first cooperative hydro pole was erected in 1937 by First Electric Cooperative in Jacksonville.

Bailey appointed utility commissioners who were sympathetic to rural co-ops. The state issued rulings setting affordable wholesale tariffs for cooperatives, paving the way for the approval of REA loans.

The Arkansas Federation of Agricultural Bureau and the University of Arkansas Cooperative Extension Service also worked to organize farmers, register cooperative members and review plans for rural electrical systems.

Cooperatives now cover 60 percent of the state. In 1942, the cooperatives pooled their resources to form a statewide association, Arkansas Electric Cooperatives Inc. The distribution cooperatives formed a closely associated generation and transmission cooperative, Arkansas Electric Cooperative Corp. , in 1949.

The AECC, AECI, and the state’s 17 electric utility cooperatives now collectively market themselves as the Electric Cooperatives of Arkansas.

“Providing electricity to Arkansas farms and communities of less than 2,500 people was expensive,” writes Mary Suter for the Central Arkansas Library System’s Encyclopedia of Arkansas. “Rural areas averaged fewer than five customers per mile of power line, compared to an average of 15 to 20 per mile in urban areas. To recoup the costs of building a line and make a profit, private utilities charged rural customers more per month. Due to the high tariffs, farmers used an average of 40 kilowatt hours per month, while city dwellers typically used at least 500.

“Low usage by rural customers made it less profitable for private utility companies to serve them. Prior to REA, rural electric service was limited. In 1930, 2.1% of farms in Arkansas had electric AP&L Couch understood that electrifying farms could increase farm incomes. AP&L had electrified the rice paddies around Stuttgart in 1918.”

In 1935 Couch started an additional rural program by building lines to Prattsville in Grant County. AP&L was, in fact, the first private utility in the country to offer low-cost financing to wire rural homes. Couch has also implemented a monthly payment plan for device purchases. The co-ops later adopted Couch’s so-called Arkansas Plan.

“Three electricity cooperatives were incorporated in June 1937,” Suter writes. “There was First Electric Cooperative, serving parts of Lonoke, Prairie and Pulaski counties; Woodruff Electric Cooperative, serving part of Woodruff County; and Farmers Electric Cooperative, serving part of Jackson County. Four other cooperatives were incorporated later in 1937.

“First Electric energized an initial 58-mile line on April 15, 1938, after borrowing $190,000 from REA to build 211 miles of line to serve 675 members. The seven of the 1937 co-ops energized the lines the The last co-op, Rich Mountain, was incorporated in 1945. By 1950, 67% of the state’s farms had been electrified.

This Monday, I’m sitting in a grand ballroom at the Red Wolf Convention Center in Jonesboro, preparing to speak at the summer co-op meeting. Hundreds of people from across the state are in attendance.

The AECC is owned by its 17 member cooperatives with 34 directors and 325 employees. AECI is also owned by the 17 cooperatives with 315 employees.

AECC, as a wholesale electricity supplier, has annual sales of over $727 million. It owns or contracts 4,280 megawatts of generating capacity and then transmits power through two regional transmission agencies. The AECC serves 1.3 million members and brings in millions of dollars to member co-ops every year.

AECI, on the other hand, is involved in utility equipment sales, right-of-way clearing and vegetation management, substation construction, high-voltage equipment testing, government affairs and public relations. . Its Arkansas Living magazine has approximately 950,000 readers each month.

Vernon “Buddy” Hasten became President and CEO of AECC and AECI in October 2019. Hasten, originally from Iowa, enlisted in the United States Navy in 1986 as an operator of underwater reactor and quickly rose through the ranks. The Auburn University graduate was assigned to nuclear submarines and shore missions during a 20-year career. In his last assignment, he was Technical Assistant to the Deputy Director of Fast Attack Submarines.

After retiring from the Navy in May 2007, Hasten returned to Iowa as regional production manager for Alliant Energy’s Iowa-based power plants. He joined Associated Electric Cooperatives in Missouri in 2011 as plant manager. Hasten was promoted to senior manager of plant operations and reliability in September 2012 and vice president of engineering and construction in January 2018.

I have long believed that electrification saved rural Arkansas in the 20th century. It enabled people to shelter from the heat, to refrigerate their food and to mechanize agricultural operations.

Now, as I tell those gathered in Jonesboro, broadband Internet services are just as important to rural Arkansas in the 21st century as electricity was in the 20th century. Under Hasten’s leadership, the co-ops take a big step towards broadband. More on that in next Sunday’s column.


Rex Nelson is editor of the Arkansas Democrat-Gazette.

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Letters to the readers: Independence would solve the country’s fuel crisis https://sharewared.com/letters-to-the-readers-independence-would-solve-the-countrys-fuel-crisis/ Fri, 02 Sep 2022 06:09:34 +0000 https://sharewared.com/letters-to-the-readers-independence-would-solve-the-countrys-fuel-crisis/ Due to successive UK governments’ failures on energy policy, the Scottish Government’s budget is also under strain, as this year’s block grant was set by Westminster long before Tory cost-of-living inflation comes into effect and by law our government must balance its books every year with tiny borrowing powers. The SNP’s provision of free childcare, […]]]>

Due to successive UK governments’ failures on energy policy, the Scottish Government’s budget is also under strain, as this year’s block grant was set by Westminster long before Tory cost-of-living inflation comes into effect and by law our government must balance its books every year with tiny borrowing powers.

The SNP’s provision of free childcare, free school meals and the Children’s Payment of £20 a week per child, lifting tens of thousands out of poverty, is unmatched in the UK , while public sector workers in Scotland are already better paid. than their counterparts elsewhere.

The question that seems to be ignored by British politicians is why those who live or run businesses in energy-rich Scotland face the highest fuel bills in Europe and higher daily charges than the rest of the world. UK. Scotland supplies around 90% of the oil and gas extracted in the UK and 60% of the UK’s onshore wind power. We have 25% of Europe’s total offshore wind and tidal resources and 10% of Europe’s wave potential

Wind turbines operated by ScottishPower Renewables at Whitelee Onshore Windfarm on Eaglesham Moor, southwest of Glasgow (Photo: Andy Buchanan/AFP/Getty)

Renewables are by far the cheapest form of energy and Scotland generated over 97% of its electricity needs from renewables in 2020. The cost of onshore wind generation is falling significantly, but our energy bills continue to rise.

With independence, all of our energy needs could be met by renewables, and today’s horrific price hikes would be a thing of the past.

I was fishing this week at Cobbinshaw Reservoir, which is the compensation reservoir for the Union Canal. It is located just south of West Calder. As we approached we could see the wind farm with six turbines just south of Pates Hill and we could also see new turbines being installed just to the west.

These new turbines are presumably the ones that are going to be so much larger that the A71 roundabouts had to be flattened on one side to allow the new, longer turbine blades to pass through them.

When we turned the road towards the reservoir we could see another wind farm with ten turbines at Stallashaws Moss, then when we were at the reservoir to the east there is a wind farm with seven turbines on the Bog Burn, and just to its south, a 21-turbine wind farm just off the Harburn golf course.

I imagine most people who live in this area have no idea how many wind farms there are, and one wonders why our energy bills are rising at such an alarming rate.

Mike McKinnell, Blackhall, Edinburgh

The case for Scotland becoming independent from the UK is getting more outlandish by the hour. The minority SNP administration has singularly failed to come up with acceptable answers as to how the Scottish economy would perform without the huge level of support currently being received generally from the Exchequer in Westminster – or more specifically from the mechanism of the Barnett formula.

Furthermore, they offer no credible explanation as to what they would create to replace the Bank of England or the pound sterling in their fantasy world of Scottish independence.

Furthermore, it is a fact that most, if not all, of our local banks such as RBS and Bank of Scotland are now subsidiaries of London-based banks. Surely, even for the most ardent followers of the SNP, this must pose enormous problems?

The current minority SNP administration at Holyrood is at six and seven when it comes to almost all areas of administration in Scotland.

In fact, it’s really quite difficult to give them credit for success in any of the major areas of government – be it in health, education, police, public transport, welfare, authorities local, etc.

Their most recent madness, in an already long list of disasters, is what can only be described as a very amateurish attempt to create a foreign ministry. So far they have inexpensively established about 8 or 9 Scottish Embassy/Consulate type ‘pretenders’ in selected countries.

The folks at the Foreign Office in London must be laughing out loud at this latest wacky move by the SNP to emulate their office.

What please can we ordinary voters expect to hear about the fantastical world of Holyrood ‘amusement park’?

Robert IG Scott, Ceres, Fife

Read more

Read more

Edinburgh agrees to apologize for its historic links to slavery and colonialism

The SNP distributes a leaflet to households in Scotland entitled ‘The new case of independence… the facts’. He says, “The evidence shows that independence works”. Other than comparing Scotland to other “small” countries, they provide absolutely no evidence that Scottish independence will work. This SNP “government” will not provide the “people of Scotland” with the economic and financial facts and figures that prove independence will be a success for Scotland.

The brochure also states: ‘Scotland could and should do so much better’. So “could” do much better, and indeed, Nicola Sturgeon recently declared of independence, “there is no guarantee of success”. She adds that Scots could be “wealthier, happier, fairer”. What did she and her party do for 15 years? It defies belief.

Douglas Cowe, Newmachar, Aberdeenshire

If Edinburgh councilors wish to apologize for the city’s involvement in the slave trade, they may do so (your report, August 31). However, as Professor Sir Geoff Palmer’s report stated, “These events happened a long time ago, in a different world” and the current obsession with slavery is distracting from today’s racial issues. today.

On the same page there was a report of how a 48-year-old man made a very offensive racist gesture towards a 13-year-old boy playing in a youth football match in Edinburgh, and it’s no surprise that the boy was reduced to tears.

Turning the page was a report of rapper Takayo Nembhard’s shocking stabbing at the Notting Hill Carnival.

I’m all for a museum about Scotland’s involvement in the slave trade, but slavery was abolished in the British Empire in 1833. Instead of going over and over something that’s been gone since long in history, we need to address the unacceptable racist abuses and racist crimes that are happening today in our supposedly more enlightened world.

There should be no surprise in fears that the two CalMac ferries being built at Ferguson Marine in Port Glasgow are likely to be subject to further delays in completion. The whole thing was an absolute disaster from the start due to incompetence from the top of the political ladder down to the shop floor. If our political leaders were to answer to a board of directors, they would be looking for new jobs a long time ago and yet they are still in power away from the public purse.

Anyone can guess how long this prank will last or how much it will ultimately cost the taxpayer for two ships that are quickly becoming white elephants. With the onset of a cost of living crisis, couldn’t the money lavished on these shacks have been better spent?

Bob MacDougall, Kippen, Stirlingshire

Murdo Fraser’s accusation that the Scottish government is “straying from the sidelines” is somewhat dishonest to say the least (Perspective, August 31). Shooting from behind the scenes seems to be his specialty! As a Christian this is not a popular position to adhere to at present, I believe he means well. But perhaps he has lost touch with the New Testament concept of grace in its increasingly frank meanderings?

Iain Masterton, Kirknewton, West Lothian

Almost 30 years ago, former President Mikhail Gorbachev delivered one in the Lothian European Lecture Series, sponsored by the then Lothian Regional Council, addressing a packed and grateful McEwan Hall. People unable to secure a seat huddled around the entrances, and spotting people smiling and waving outside, Mr. Gorbachev paused briefly in the ceremonial procession leading him to the hall and waved at those who were outside to enter.

Although it was not possible, those who witnessed his generosity and charm will remember it as vividly as those inside remember the grand occasion itself.

The event was chaired, also with charm and humour, by Sir Edward Heath. No friend of Mrs. Thatcher, the former prime minister, had in fact ever met the Russian president whom Margaret Thatcher had said “you could do business with”.

This slight was undoubtedly on Sir Edward’s mind as he answered questions from the audience, one of which was posed by a young schoolgirl. Congratulating her on her question and wishing her luck with her future, and possibly a political career, Sir Edward nevertheless sympathized sadly with her for the sad fact that there was absolutely no chance of her getting the highest function as another female Prime Minister.

MacEwan Hall got the joke and roared his approval with thunderous applause.

Thirty years is a very long generation in Conservative politics. The latest revolving door spin of fallen Conservative leaders and leadership elections is proving not so “strong and stable” after all, and not “better together” even unopposed. Sir Edward’s favorite epithet, as a determined European, might have been ‘pride’.

Geraldine Prince, North Berwick, East Lothian

Your thoughts are welcome. Write to [email protected] including name, address and telephone number – we will not print all the details. Keep letters under 300 words, with no attachments, and avoid “letters to the editor/readers” or the like in your subject line. Do not send letters submitted elsewhere. If you refer to an article, include the date, page number and title.

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Beyond the Shelf: Discover the Power of the Library Card https://sharewared.com/beyond-the-shelf-discover-the-power-of-the-library-card/ Sun, 28 Aug 2022 23:00:16 +0000 https://sharewared.com/beyond-the-shelf-discover-the-power-of-the-library-card/ Beyond the Shelf is a monthly column about the activities and people of the La Jolla/Riford Library. September is library card sign-up month, which inspired me to ask the friendly faces of the library a simple question: “How you prefer to use your library card? » Some of the answers might surprise you. Asked her […]]]>

Beyond the Shelf is a monthly column about the activities and people of the La Jolla/Riford Library.

September is library card sign-up month, which inspired me to ask the friendly faces of the library a simple question: “How you prefer to use your library card? »

Some of the answers might surprise you.

Asked her favorite thing to do with a library card, library assistant Cindy Vuu emphatically said, “Learning online. Then I want to take a computer course.

Accessible through the San Diego Public Library website, sandiego.gov/public-library, Gale Courses offers a wide range of highly interactive, instructor-led courses that library card holders can take online at no cost to them. Classes last six weeks and new sessions start every month.

Rosetta Stone is a great deal for library cardholders who want to learn a new language. I personally use it to continue my quest to learn French. During the previous school year, Afghan refugee students enrolled at La Jolla High School obtained library cards for the specific purpose of using Rosetta Stone to strengthen their English.

Did you know that a library card gives access to newspapers? It’s true. You can read The New York Times, Los Angeles Times and San Diego Union-Tribune on us. “Really?” exclaimed boss Alice Feng as I explained to her how to access the newspaper digitally the other day. We then visited the Newsstand database, which provides access to over 2,300 major US regional, national and local newspapers, as well as major titles from around the world. And because she was curious, we finally looked at the Flipster database so she could see which magazines she can access digitally with her library card.

Emily McKinnon and her children Jack, 8, and Nina, 11, visit the La Jolla/Riford Library.

(Courtesy of Katia Graham)

Now consider the vast collection of e-books available to library cardholders. La Jolla/Riford Library patron Emily McKinnon and library staff Shadi Sarikhani love accessing e-books and e-audiobooks through the Cloud Library app, which you can download to your favorite device.

All of this and more, like an abundance of research databases and academic journals, can be found under “eLibrary” San Diego Public Library website tab.

Oh yes. We also have physical resources. Over 68,000 books line the shelves of the La Jolla/Riford Library. A library card gives patrons access to all of them, as well as alternative resources such as DVDs and magazines, not to mention the millions of books in the San Diego Public Library collection and books cloud library electronics. Customers can view up to 40 books at a time. Since kids can also get library cards, a family of four could potentially leave the library with 160 books in tow!

Outlets are where the heart is, and the ‘SDPL to Go’ app makes it possible. Boss Anna Marie Cameron said her library card plays a vital role in her weekend routine: “I love putting books on hold while I scan the Sunday paper for book recommendations.”

Supervising Librarian Kelly Pepo said, “I use my library card as much as possible to place reservations and access audiobooks. But as someone who loves cookbooks, I really rely on borrowing cookbooks so I can try before you buy instead of buying them outright and realizing there’s not much to it who would interest me in cooking. It saved me a lot of money.

We all use our library cards differently. We like that. The public library is there for you to use in the way that best suits you.

La Jolla/Riford Library Branch Manager William Mallory stands by this statement: “Whether it’s teaching you new skills, improving your job opportunities, or enriching your life with new ideas, everyone with a library card can pursue his passions.

Where will your library card take you?

Katia Graham is the Youth Services Librarian at La Jolla/Riford Library. You can email him at grahamk@sandiego.gov. To sign up for a library card, stop by the library at 7555 Draper Ave. or complete the online application form available at sandiego.gov/public-library. Follow @lajolllibrary on Instagram.

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Vicky Bowman’s arrest in Myanmar is ‘hostage diplomacy’, activists say https://sharewared.com/vicky-bowmans-arrest-in-myanmar-is-hostage-diplomacy-activists-say/ Fri, 26 Aug 2022 11:25:00 +0000 https://sharewared.com/vicky-bowmans-arrest-in-myanmar-is-hostage-diplomacy-activists-say/ Comment this story Comment Myanmar’s military’s recent arrest of a former British ambassador is an example of “hostage diplomacy”, say opposition activists and politicians. The ex-diplomat’s detention came as Britain attempted to further isolate the regime in Southeast Asia. Vicky Bowman, who served as Britain’s ambassador to Myanmar from 2002 to 2006, was arrested at […]]]>

Comment

Myanmar’s military’s recent arrest of a former British ambassador is an example of “hostage diplomacy”, say opposition activists and politicians. The ex-diplomat’s detention came as Britain attempted to further isolate the regime in Southeast Asia.

Vicky Bowman, who served as Britain’s ambassador to Myanmar from 2002 to 2006, was arrested at her Yangon flat on Wednesday evening with her husband, Htein Lin, a renowned Burmese artist. They join the 15,000 and over people arrested by the military junta since it seized power in a coup in February 2021, the Association for Assistance to Political Prisoners said, a non-profit organization who hunts down those persecuted by the regime. The figures include at least three other foreigners.

Activists say the detention of Bowman, who is accused of having stayed at a different address than the residence she officially registered, reflects the military’s growing impunity. The junta has brutally crushed opposition over the past year and defied international calls last month by executing four pro-democracy leaders. Many also see the arrest as an attempt to pressure foreign governments into not undermining the regime, including with tougher penalties.

Other foreigners known to be in custody include Sean Turnell, an Australian economist and longtime adviser to Nobel Peace Prize laureate Aung San Suu Kyi, who was arrested days after the 2021 coup. and Toru Kubota, a Japanese documentary filmmaker who was taken into custody. this month while covering a protest in Yangon.

Danny Fenster, an American journalist who worked in Myanmar, spent more than five months in prison last year before being pardoned. The US Embassy in Yangon said last month that another American was “wrongfully detained” in the country.

A love story, forged in Myanmar’s political strife, ends in execution

“They are trying to create a hostage situation, a kind of hostage diplomacy,” said Moe Zaw Oo, deputy foreign minister of the National Unity Government (NUG) – an administration in exile that enjoys a significant popular support. He said the junta was borrowing from the playbook of other authoritarian regimes, including Russia, which continues to detain Americans, including WNBA player Brittney Griner, whom the US State Department considers wrongfully detained.

“The ransom in this case is a kind of political advantage,” Moe Zaw Oo added of Bowman’s arrest.

Myanmar’s military, also known as the Tatmadaw, has been brutal in its recent crackdown on opposition forces. He used tactics honed over decades of repression of ethnic minorities, including the razing of villages and the use of human shields. Faced with multiple insurgencies and the threat of further isolation from the international community, the junta is seeking new methods of intimidation, observers say.

Military leaders are “fighting for survival”, said Mark Farmaner, director of the pro-democracy group Burma Campaign UK, which uses a different name for the country. “They’re not playing the same international diplomatic games they played when they were in charge before.”

Zachary Abuza, a professor at the National War College in Washington who studies security issues in Southeast Asia, said the arrests would likely prompt foreign governments to prioritize the safe release of their citizens. That could weaken — or delay — a “more principled response” to the junta, he said.

Australia has reluctant to impose severe penalties on Myanmar since the coup, lagging behind other Western powers, he noted. Foreign Secretary Penny Wong said in June that Australia is considering further sanctions, but stressed that securing Turnell’s release is the country’s “first priority”.

Days before Bowman’s arrest, Britain announced it would join other countries in a case before the International Court of Justice alleging that Myanmar’s military committed genocide against the Rohingya Muslim minority. . London also said it would impose new penaltiesincluding against Sky One Construction Company, which has ties to the son of junta leader General Min Aung Hlaing.

There is no immediate evidence that the arrest and punishments were linked, but activists say the message sent to foreign governments is clear.

“It’s a challenge not just for the Burmese people but for the world,” said a Burmese journalist in the UK, a longtime friend of Bowman and Htein Lin. “The message is: no one is safe.”

The reporter, who spoke on condition of anonymity for security reasons, said the arrests of Bowman, 56, and Htein Lin, 55, came as a surprise to their friends.

Brittney Griner could go to a Russian penal colony. Here’s what you need to know.

The couple were well known in many circles – Bowman is fluent in the country’s dominant language and has lived there for over 30 years; Htein Lin had been a student activist in the 1980s and 1990s – and their dramatic romance attracted international attention.

But in recent years, they had led a relatively “low-key” life, the reporter said. Bowman was most recently the director of the Myanmar Center for Responsible Business, a Yangon-based initiative, and was not a vocal critic of the junta.

In a interview with local media Frontier Myanmar this year, Bowman advised companies against getting close to the military. “Our advice is that you should continue to obey the law,” she said. “However, we do not encourage companies to hold their heads above the parapet and have a ceremonial and groundbreaking relationship with the government.”

While she was also not a regime supporter, Bowman had contacts in the military, two of her friends said. This gave her some assurance that she could live safely in the country with her husband and 14-year-old daughter, even after the coup.

When the pandemic hit, Bowman and her family moved from Yangon to a house Htein Lin owned in Kalaw, a hilltop town in central Myanmar. A junta spokesperson said Thursday that Bowman was accused of living at an address she had not registered. Her husband, the official said, was charged “because he knew and encouraged his wife to move into his home, contrary to applicable law.”

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Protecting UK families from fuel bill crisis set to cost £100bn https://sharewared.com/protecting-uk-families-from-fuel-bill-crisis-set-to-cost-100bn/ Tue, 23 Aug 2022 19:12:26 +0000 https://sharewared.com/protecting-uk-families-from-fuel-bill-crisis-set-to-cost-100bn/ One of the UK’s biggest energy groups has told ministers that a bailout to protect households from rising bills will require more than £100billion in funding over two years, pointing out the scale of crisis gripping Britain as gas prices rise. Keith Anderson, chief executive of Scottish Power – one of the ‘Big Six’ energy […]]]>

One of the UK’s biggest energy groups has told ministers that a bailout to protect households from rising bills will require more than £100billion in funding over two years, pointing out the scale of crisis gripping Britain as gas prices rise.

Keith Anderson, chief executive of Scottish Power – one of the ‘Big Six’ energy providers – met Business Secretary Kwasi Kwarteng last week and proposed capping household energy bills at around £2,000 per year, according to people familiar with the talks.

Liz Truss, the Tory’s main leadership candidate, acknowledged that new support for households may be needed as rising bills are set to accelerate, but maintained her distaste for “handouts”.

However, the government has become increasingly concerned about the scale of the energy shock in recent weeks as petrol prices have risen sharply.

Philippe Commaret, managing director of customers at energy supplier EDF, warned on Tuesday that the UK was facing a “catastrophic winter”, telling the BBC that half of households could fall into energy poverty without intervention.

Under Anderson’s proposal, household bills would be frozen for two years near the current price cap of £1,971, which is already nearly double the typical bill of 18 months ago.

Households face another jump in the ‘ceiling’ of energy bills on Friday when energy regulator Ofgem is due to announce a new limit, which analysts predict will rise above £3,000. Banks and consultancy firms expect the cap to be raised above £5,000 by April.

Under Scottish Power’s proposal, suppliers would cover the gap between the cap and the wholesale price of gas and electricity by borrowing from a ‘deficit fund’, organized by the government through commercial banks.

The cost would be gradually repaid by the public either by public borrowing financed by general taxation, spread over the bills of the next 10 to 15 years, or spread between a combination of the two.

People familiar with the talks said the ‘mood music’ in government had changed in recent weeks as gas prices rose, with Russia cutting supplies to Europe in retaliation for sanctions over its invasion of Ukraine.

Anderson first presented the plan in the spring to a sympathetic Kwarteng audience, according to the business secretary’s allies. Rishi Sunak, then Chancellor, instead set up a £15billion fund comprising one-off payments of £400 to every household in the country.

However, Kwarteng is now on course to become Chancellor of the Exchequer, with his close ally Truss, the foreign secretary, leading Sunak in the polls for the Tory leadership race.

The Business Secretary discussed the plan with Anderson during a call on Wednesday last week, but said no decision would be made until the Conservative Party chose a new leader to replace Boris Johnson on September 5 , said people briefed on the talks.

The plan would cost more than the coronavirus furlough scheme that paid millions in wages during the lockdown phases of the pandemic. It cost £69bn between March 2020 and October 2021.

Industry executives involved in the talks said the final cost of the proposal was not fixed. One option would see the government target support only to the 5 million households who receive Universal Credit payments rather than all 28 million households in the UK, although there are fears that the scale of increases in the Energy bills also overwhelm many higher income households.

The cost of the plan could also increase if wholesale energy prices continue to rise, potentially leaving the government with a large uncapped liability.

People familiar with the talks said the proposal could help calm inflation across the economy, although many small businesses, which are not covered by the price cap, may need help. additional support.

Keir Starmer, leader of the opposition Labor Party, said as prime minister he would cap prices at their current level for six months at a price of around £30billion.

A government official said Anderson’s proposal showed the industry believed the crisis could continue for two years.

“This not only demonstrates the scale of the problem, but also how long it is likely to last. . . it shows how long the industry thinks prices are going to stay high,” he said.

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