Policy

Few readers, even of the Financial Times, will feel much sympathy for executives in the international energy business who complain about their lot. Paid in the hundreds of thousands (at least), travelling around in executive jets and chauffeured cars, pampered by executive assistants and personal assistants – life surely can’t get much better.

But there is a real and serious problem that merits some attention. Many senior executives are exhausted and burnt out. Across the business world, there have recently been a number of high-profile cases of executives who have given up their jobs because of the stresses involved. António Horta-Osório, chief executive of Lloyds Banking Group, and Hector Sants, former head of compliance at Barclays, are the most prominent names. In the energy sector, companies and individuals shun publicity. But, in the past few weeks, I have heard of four cases of individuals who have in one way or another collapsed under the pressure of their jobs. One leading company is undertaking a thorough analysis of the psychological health of its top 50 people, and I would be surprised if others don’t follow. Read more

UK-based energy companies who have held investor relations meetings in the US in recent weeks have encountered a bleak response. The UK energy sector, they were told, is “uninvestable”. This is the market’s response to two months in which the certainties of the UK energy market have been undermined by politics. Given the scale of new investment required as old capacity is retired, this stark conclusion is very damaging and must be addressed by the Chancellor in his autumn statement on December 5. Read more

Energy policy is a serious problem which won’t be solved by gimmicks or slogans. Most of the debate in the UK over the last few weeks has focused on the prices being paid by domestic consumers. Now, though, the focus is set to shift to the competitive burden on businesses and jobs not just in the UK but across Europe. With yet more price increases to come, the need for a new and serious policy covering both supply and demand is becoming urgent. Read more

Sir John Major has hit some raw nerves in the UK government with his comments on “lace curtain poverty” and the harsh impact of rising energy bills. But to pin the blame on the energy companies is wrong and runs the risk of making a bad situation worse.

The former British prime minister alleges that the companies – unnamed but presumably the utilities and the suppliers of raw materials to those utilities – are profiteering. I hope he will show us all the detailed evidence. If that evidence exists, and if there is a cartel of any sort, it is a matter for Her Majesty’s constabulary. Read more

Do renewables represent the future of the energy business or a minor contributor in a sector which will continue to be dominated by hydrocarbons? That will the underlying question at the FT Renewables conference this week. The answer looks to be the latter but financial engineering or a major technical breakthrough could yet change things. Read more