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40% of Customers Will Face Fuel Poverty By October 2022 – E.On UK CEO Warns

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One of the United Kingdom’s largest energy suppliers, E.On UK has warned that about 40 per cent of its customers will be in fuel poverty by October 2022, calling on the UK government to help save the situation.

Accordung to the Chief Executive of E.On UK, Michael Lewis, the rise in energy prices is “unprecedented” and a growing number of its customers are in arrears.

Lewis noted that around a fifth of its customers were already in fuel poverty. He however revealed that this figure is expected to rise significantly later in the year.

“In my 30 years in the energy industry I’ve never ever seen prices increasing at this rate,” Lewis noted.

He added that around one in eight of its customers were already struggling to pay their bills, even before the weather turns colder and the new energy price cap comes into force in October, which is expected to rise significantly.

“We do need more intervention in October and it has to be very substantial,” he told the BBC’s Sunday Programme.

Investors King gathered that Energy regulator, Ofgem lifted the price cap on gas and electricity bills in April, adding around £700 to the average household energy bill to take it to £1,971.

For the 4.5 million people on pre-payment meters – which are typically used by people on lower incomes – the price of energy has now risen further, by an average £708, to £2,017 a year.

Due to the rising cost of wholesale gas, however, the price cap is expected to increase and take the typical energy bill to as much as £2,800, if not higher.

Following the rise of gas and electricity prices in April, the UK’s inflation rate reached a 40-year high of nine per cent.

A household is considered to be in fuel poverty if it has to spend 10 per cent or more of its disposable income on energy.

Recently, Shell reported a record £7bn profit in the first three months of this year while BP made £5bn, the highest for 10 years.

 

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Nigeria Sells $1 Billion Worth of Natural Gas to Portugal in 2022 – NNPC

The Federal Government of Nigeria has sold natural gas worth $1 billion to Portugal in 2022, according to the Nigerian National Petroleum Company (NNPC).

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The Federal Government of Nigeria has sold natural gas worth $1 billion to Portugal in 2022, according to the Nigerian National Petroleum Company (NNPC).

Mele Kyari, the Chief Executive Officer, NNPC, was quoted as saying at the Nigeria-Portugal Business and Trade Forum attended by President Muhammadu Buhari.

The NNPC boss said Portugal has been purchasing Nigeria’s energy for decades now and explained that President Buhari is on a state visit to Portugal for the second United Nations Ocean Conference.

He said “President Muhammadu Buhari is on a state visit to Portugal for the second United Nations Ocean Conference.

“On the sidelines of the event, President Muhammadu Buhari is leading a high-level Nigerian business delegation to the Nigeria-Portugal Business & Trade Forum.

“On the President’s delegation is the CEO NNPC Ltd, Mallam Mele Kyari, who highlighted the age-long energy partnership between the two countries, stressing that Nigeria supplies 70 per cent of energy imports to the European nation.”

On its Twitter page, the NNPC further quoted Kyari as saying, “This year alone, we have sold over a billion-dollar worth of natural gas to Portugal.”

NNPC boss also noted that there were ample opportunities to grow the energy supply to Portugal.

He told participants at the forum that Nigeria had invested in critical infrastructure to ensure domestic gas availability and increase gas supply to the international market.

 

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Russian Gas firm, Gazprom to Cut Gas Supply to Shell, Following EU’s Decision 

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Russia’s state-owned gas supplier, PJSC Gazprom has said it would halt gas supply to Denmark’s Orsted and Shell for its contract to supply gas to Germany after both parties refused to make payments in roubles – the Russian currency.  

Investors King recalls that PJSC Gazprom stopped its gas exports to Finland, following the payment dispute between the two European countries. 

The move by Gazprom comes after European Union leaders said they will block most Russian oil imports by the end of 2022 to punish Moscow for invading Ukraine. The gas company said it would continue to phase out Russian fossil fuels.

The EU ban will affect oil that arrives by sea – around two-thirds of imports – but not pipeline oil after Hungary opposed the decision.

In response to Western sanctions, Russia has already cut off gas supplies to Poland, Bulgaria, and the Netherlands, after the countries refused to comply with Russian demands to switch to payment in roubles.

The latest move expands that retaliation to Germany and Denmark.

President of the Russian Federation, Vladimir Putin’s decree has been seen as an attempt to boost the Russian currency, which has been hit by sanctions, as more foreign exchange demand for roubles is likely to increase demand and push up its value.

Shell Plc has now said it will work to keep gas flowing to its customers in Europe despite the decision by the Russian gas company and has also promised that it would continue to get gas from its other sources, as reported by a UK media outfit

“It had not agreed to “new payment terms set out by Gazprom”, which included the creation of Russian bank accounts,” Shell stated in an interview with newsmen. 

“We will work to continue supplying our customers in Europe through our diverse portfolio of gas supply,” according to its spokesman. 

“Shell continues to work on a phased withdrawal from Russian hydrocarbons, in compliance with applicable laws and regulations.”

Meanwhile, Orsted said on Monday that Gazprom stopping gas flows would put Denmark’s supplies at risk.

Shell has taken a hit of $5bn (£3.8bn) from offloading its Russian assets as part of its plans to withdraw sever ties with the country. It also confirmed it had quit its joint ventures with Gazprom.

The firm pledged in April to no longer buy oil from Russia but said contracts signed before the invasion of Ukraine would be fulfilled.

Recall also that Investors King reported that the EU’s decision to ban the Russian oil led to an increase in the price of crude oil from which Nigeria is expected to benefit from. 

Crude oil prices rose above $120 a barrel on Monday as traders awaited the decision of the EU concerning Russian crude oil sanctions.

 

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Worsening Energy Crisis is a Major Opportunity for Investors

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The global energy crisis will continue to deepen and should act as an alarm call now about the decent long-term future rewards in sustainable investments, says the CEO of a leading global financial giant.

The analysis from Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations, comes amid a flurry of international energy concerns.

On Monday, the European Union agreed to forge ahead with a partial ban on Russian oil. The action forbids the purchase of crude oil and petroleum products from Russia delivered to member states by sea.

It follows news that six million households face power blackouts over winter due to Russian threats that it will cut the EU’s gas supply, with the UK Government now drawing up plans for rationed electricity.

Elsewhere, U.S. oil inventories are already 14% below their five-year average; China – the world’s number two economy – has been battling its most severe energy crisis in a decade; and in South Africa, amongst other countries, there continues to be widespread rolling blackouts as supply falls behind demand.

Mr Green says: “The global energy crisis is only set to deepen. It’s not going away any time soon.

“The crunch was started by the world economy rebounding from the pandemic faster than was anticipated, bringing to the fore supply and infrastructure issues.

“But the rebound’s impact isn’t the only reason for the international energy crisis we’re currently experiencing.

“Nor is the ongoing war between Russia and Ukraine, which is slashing supply globally.

“Intrinsic demand is also surging due to a 1% rise per year in global population growth, plus the increase in wealth and consumption of the growing global middle class.”

However, what is now a big headache for households and policymakers is also an opportunity for investors.

“The energy crisis should serve as a catalyst for the energy transition.

“The current situation around the world must be dealt with in the short-term; but it has brought into sharp focus that rather than staying with fossil fuels, the longer-term answer to this and future energy crunches is to accelerate investment into sustainable projects that deliver cleaner power.

“Investors, keen to get ahead of the curve as well as earn profits with purpose, will be more keenly seeking out the opportunities as the world scrabbles to mitigate the environmental, economic and social fallout of the current situation – a situation which is likely to be a constant risk moving forward.

“They will be moving quickly to have an early advantage, foreseeing the undeniable value, necessity and rewards of sustainable investing.”

deVere highlighted its own commitment to back environmental, social and governance (ESG) values last year by being one of 18 founding signatories of a UN-backed Net Zero initiative, alongside the world’s two largest credit rating agencies, six major audit networks, three leading index providers, and two global stock exchanges.

The international alliance of powerhouse global finance companies will help accelerate the transition to a net zero financial system.

Nigel Green concludes: “The worsening global energy crisis is a defining issue of our time, and it represents a key opportunity for investors seeking to build long-term wealth with a purpose.”

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