Scots will face exorbitant energy bills for years to come as a result of windfall taxes and the shift to green energy, according to the CEO of one of Europe’s largest oil companies.
Anders Opedal, CEO of Norwegian energy giant Equinor, warned that high bills were here to stay, blaming firms’ investments in renewables in part.
Scots will face exorbitant energy bills for years to come as a result of windfall taxes and the shift to green energy, according to the CEO of one of Europe’s largest oil companies. Anders Opedal, CEO of Norwegian energy giant Equinor, warned that high bills were here to stay, blaming firms’ investments in renewables in part.
Word from Experts
Meanwhile, green groups and unions have called for the UK’s National Grid to be completely privatized to hasten the phase-out of fossil fuels.
Opedal said Russia’s move to choke Europe of gas supplies – in retaliation against sanctions over its war on Ukraine – had stripped the continent’s energy markets of a “vital fuel”.
“Europe’s entire energy system is being rewired. More renewables are desperately needed. We need to do business in a completely different way, requiring hydrogen and other resources. ” “This will necessitate a significant investment, and these investments must be repaid – so I would anticipate that energy bills will be slightly higher than in the past.”
Overview from Government
“It is affecting how we judge each project,” he said of the UK government’s 35% windfall tax on oil company profits.
Speaking ahead of his attendance at the World Economic Forum in Davos, Switzerland, Opedal also insisted that the Rosebank development, which could produce 70,000 barrels of oil per day, was essential for the UK’s energy security.
Campaigners, however, claim that the project contradicts climate targets. It comes after the Unite union claimed that the National Grid was being used as a “state-sponsored cash machine” for shareholders rather than investing profits in carbon-cutting initiatives.
They joined others in calling for the UK’s electricity network to be fully publicly owned to facilitate the transition to net zero energy. The grid will be partially nationalized next year to give the UK government more control over its strategy.
However, Molly Scott Cato of the Green Party of England and Wales believes the entire organization should be run by the state. “To achieve our climate targets, we must shift to powering our lives with electricity, and the National Grid plays a critical role in this endeavor,” she said. We need the National Grid to be able to focus solely on ensuring a sustainable future, not on keeping shareholders happy.”