Business Briefing – UK’s Energy Industry Leaders Gather in Downing Street to Discuss Economic Growth and Energy Security: Consumers Missing Key Bills: FTSE100 Opens Lower on Wednesday

On Wednesday, energy industry leaders in the UK convened in Downing Street for a crucial meeting with Grant Shapps, the Energy Security Secretary. The focus of the meeting was on driving economic growth and enhancing energy security in the country. Notable companies such as EDF, SSE, Shell, and BP were among the participants, collectively holding multi-billion pound investment plans for low and zero-carbon projects.

During the meeting, Mr. Shapps emphasised the government’s commitment to supporting homegrown energy sources, including renewables, nuclear power, and backing North Sea oil and gas projects. Additionally, he highlighted the measures taken to safeguard critical energy infrastructure from disruptive protests.

To protect against unauthorised access to energy sites, the government is collaborating with the police under the Public Order Act. Furthermore, the Civil Nuclear Constabulary, comprising 1,300 officers and 300 support staff, is actively engaged in securing nuclear sites across England, Scotland, and Wales.

Mr. Shapps stated that the UK is determined to send a clear message to entities like Putin, assuring that the country will never be held hostage by energy supply disruptions. The energy industry leaders in attendance were seen as crucial players in achieving this objective.

In other news, Prime Minister Rishi Sunak recently announced the granting of hundreds of new oil and gas licenses in the UK. Two new carbon capture usage and storage clusters will be established in north-east Scotland and the Humber. The move is aimed at enhancing the UK’s energy system and supporting low and zero-carbon products and services.

Key companies have pledged significant investments in the UK’s energy sector. Shell UK aims to invest £20-25 billion over the next decade, with a focus on low and zero-carbon initiatives. BP intends to invest up to £18 billion by 2030, while SSE plc has committed £18 billion until 2027 to develop low-carbon infrastructure, generating 1,000 new jobs annually until 2025. National Grid plc and EDF have also outlined substantial investment plans.

This meeting came after BP reported a substantial underlying replacement cost profit of around £2 billion over the three months to the end of June.

On a separate note, consumer group Which? reported a concerning trend of households missing payments on essential bills, including energy, phone, and water, similar to levels seen during the winter. This highlights the strain on household budgets, with around 2.4 million households missing at least one bill payment in the month to mid-July. Mortgage and rent payments were also affected, with 770,000 failing to make timely payments.

As for the financial markets, the UK’s FTSE 100 opened lower on Wednesday due to global risk sentiment being impacted by Fitch’s downgrade of the United States’ credit rating. On a positive note, BAE Systems’ shares rose after the defence company raised its full-year guidance. Similarly, ConvaTec Group saw a jump in shares after the technology firm revised its full-year guidance upward.