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The UK's Industrial Crisis The manufacturing lobby group Make UK and the Trades Union Congress have warned that high electricity prices are killing the UK's industrial sector. The cost of energy in the UK is a heavy drag on business competitiveness, with UK companies paying the highest electricity prices in the G7. The Impact of High Energy Prices Make UK's survey of its members found that almost one in 10 have already moved some production overseas, and 16% are considering doing so. Profit margins are being squeezed because energy bills are rising faster than the companies can put up the prices of their products. Almost four in 10 companies have delayed investment. The Call for Relief The Trades Union Congress and Make UK are calling for the government to expand the scope of the British industrial competitiveness scheme (BICS) to cover more manufacturers. The scheme currently covers only 10,000 companies, and Make UK wants all 130,000 manufacturers to be covered, which would cost £3bn. The Bigger Picture The crisis tends to be a slow-burner, which is perhaps why it never quite rises to the top of the political agenda. The bigger hidden cost is one of multinationals choosing to expand production overseas rather than in their UK factories. The Need for a Comprehensive Solution A parallel debate over where levies properly belong – on bills or funded by the Treasury – is happening in the household sector. But, to date, the government's approach for business and industry has been to stick to its narrow and targeted philosophy. A proper strategy is needed, and can't be dodged much longer.

The Impact of Renewables on Spanish Households Spanish households are saving €10 a month on electricity bills because of wind turbines and solar panels installed in the last five years, a report has found. Renewables Shield Spanish Consumers from Gas Price Rises Typical energy bills would be 19% more expensive if electricity costs were still as tightly coupled to gas prices as in 2021, according to Ember, a climate thinktank. It found Spain’s “strategic” expansion of renewables since Russia invaded Ukraine in 2022 has shielded Spanish households from the latest rises in fossil fuel prices caused by the Iran war. The Data Analysis Burning fossil gas is one of the most expensive ways to generate electricity in Europe, even before considering the health costs of the carbon emissions. The influence of gas on electricity prices in Spain fell from 52% of hours in 2021 to 9% of hours in the first five months of 2026, according to the analysis. Wind and solar generated 33% of Spain’s electricity in 2021. By 2025, the share had risen to 42%. The Impact Analysis “We just had a 60% rise in gas prices and electricity bills in Spain basically haven’t reacted – they actually got a bit cheaper in April,” said Chris Rosslowe, an analyst at Ember and the lead author of the report. “That’s a clear and obvious contrast to the previous gas crisis, when electricity bills were climbing immediately.” The Prediction “Spain and Portugal are greatly benefiting from their early transition,” said Mar Reguant, an energy economist at Northwestern University. “The Iberian peninsula has a privileged position and has acted smartly.”

Survey Flags Imminent Collapse of UK Manufacturing The latest Make UK member survey reveals that thousands of British manufacturers are on the brink of bankruptcy unless energy prices are curbed. Chief executive Stephen Phipson warned that confidence has fallen to a four‑year low, and the sector could face deindustrialisation without urgent action. Energy Price Shock Drives Business Decisions Energy costs in the UK are reported to be twice the European average and four times higher than in the United States. The survey shows how firms are reacting: 25% of manufacturers are planning to move production overseas or have already done so. 10% say they are likely or very likely to become insolvent within the next 12 months. 46% have experienced a further rise in energy bills since the Middle‑East conflict began. 60% of those firms are passing the increased cost onto customers. Numbers Reveal Scale of the Crisis Financial pressure is evident across the sector: 98% of respondents expect a significant squeeze on profitability in the coming quarter. 38% have delayed investment projects. 21% have reduced headcount. About 800 of the UK’s 130,000 manufacturing firms are large and predominantly foreign‑owned. Government taxes and levies account for roughly £3 bn (about 50%) of industrial energy bills. Broader Implications for the UK Economy The survey highlights a widening gap between large exporters, who can shift production to cheaper energy markets in Europe and Asia, and smaller domestic firms, which are forced to cut investment and jobs to survive. The potential loss of well‑paid jobs in poorer regions, as noted by TUC general secretary Paul Nowak, could deepen regional inequality and weaken the country’s industrial base. What Policy Moves Could Avert Deindustrialisation Industry leaders are calling for immediate fiscal relief: Extend the Treasury’s coverage of carbon taxes and levies, similar to the approach in France and Germany. Accelerate the British Industrial Competitiveness Scheme (BICS), which currently takes effect in April 2027, to provide earlier support. Maintain the April‑extended subsidy that reduces bills by up to 25% for 10,000 heavy‑energy users. Review the marginal pricing system that links gas costs to electricity prices, given that gas supplies 30% of UK electricity generation versus 16% in Germany and 3% in France. Government officials acknowledge the challenges and cite the modern industrial strategy as a framework for cutting electricity costs and supporting sectors such as chemicals and ceramics. The speed and scale of any intervention will determine whether the UK can halt the slide toward deindustrialisation.

The Covert Influence Operation OpenAI has revealed that China-based actors are likely behind the use of ChatGPT for covert influence operations aimed at stoking opposition to data centres in the United States. In a research report, the company stated that it had banned a cluster of accounts likely based in China for attempting to manipulate a legitimate debate about American AI. The Methods Used by China-Based Actors The accounts were used to generate social media comments and images that blamed data centres for rising electricity prices in communities across the US. The content included a comic strip showing a cigar-chomping businessman holding bags marked with dollar signs as a family reacted in shock to their electricity bill. The Data Analysis At least 36 data centre projects were blocked or delayed between May 2024 and June 2025, according to Data Center Watch. The facilities accounted for 1.5 percent of global electricity use in 2024, with consumption growing 12 percent annually over the last five years. The Impact Analysis OpenAI's findings suggest that foreign influence operations have long sought to latch onto existing local issues and sincerely held beliefs, using them to build credibility, amplify divisions, or exacerbate public distrust. The company found no evidence that the campaign had a meaningful influence, but it highlights the potential for AI to be used in covert influence operations. The Prediction As AI continues to play a larger role in society, it is likely that we will see more attempts to use it for influence operations. OpenAI's actions demonstrate the need for companies and governments to be vigilant in monitoring and mitigating these types of threats.

Government as Sole Electricity Buyer: The Core Proposal The Common Wealth think‑tank recommends that the UK government act as the "single buyer" of power generated in England, Scotland and Wales. Under the plan, a publicly accountable body would contract directly with generators – including gas, nuclear, wind and hydro – and resell electricity to consumers, breaking the current link between wholesale gas prices and retail electricity rates. Projected Savings: £74bn to £41bn Over Five Years Assuming gas‑driven wholesale prices stay at £100/MWh, the reforms could generate up to £74 billion in total savings over five years. If the Iran‑related energy shock eases and wholesale prices fall to £70/MWh, total savings are estimated at about £41 billion. Average household savings are projected at roughly £185‑£200 per year, equating to nearly £200 for many families. Why the Current Gas‑Linked Pricing Model Stalls Low‑Cost Power At present, electricity prices to consumers are set by the cost of gas, which determines the wholesale price for 80‑90% of the time while contributing only about a quarter of total generation. This structure funnels billions in windfall profits to private gas generators and leaves UK households with some of the highest bills globally, despite increasing renewable output. Potential Path Forward: From Pilot to Nationwide Reform The report suggests a phased rollout: Establish a public procurement agency to negotiate "public power purchase agreements" based on the average generation mix rather than gas prices. Maintain a strategic gas reserve to ensure reliability when renewables dip or nuclear units are offline. Encourage demand‑side response by incentivising consumption during cheaper periods and investing in battery storage. Align with the Department for Energy Security and Net Zero’s clean‑energy mission to reduce reliance on volatile fossil‑fuel markets. If adopted, the model would mirror centralized electricity markets used in other countries and the pre‑privatisation system of the 1980s, curbing excessive profits for gas generators and delivering more predictable, lower‑cost power to consumers.

The Call for a Fair Return Over the past few months, tens of thousands of Australians have emailed their local MP calling for a 25% tax on gas exports. More than 2,200 people have even chipped in their own money to fund billboards promoting the idea. Australians can see what’s happening: multinational gas companies posting enormous profits from exporting a finite resource while paying less in petroleum resource rent tax than Australians collectively pay in beer excise. The Investment in AI and Datacentres Huge investment in this space is pouring into Australia. In the past year, Microsoft has announced $25bn will go into Australian datacentres and Amazon Web Services has committed another $20bn. The prime minister has posed for photos with the CEOs of both companies, welcoming the investment with open arms despite a growing backlash by communities against AI and datacentre construction. The Environmental Impact By 2030, Australian datacentres are expected to consume as much electricity as every household in Victoria combined. Water consumption is forecast to more than triple. The Climate Council has warned that, without significant new renewable generation and storage, growing demand from datacentres could push wholesale electricity prices more than 20% higher by 2035. The Need for a Balanced Approach Australia should embrace new technology that improves our lives and helps us live within the bounds of ecological limits. We should welcome investment that creates value and helps build our future economy but we should also learn from our past. If multinational tech companies are going to use Australian land, Australian energy, Australian water and Australian workers to build the infrastructure that powers the AI revolution, then Australians deserve a fair return.

The Escalating Humanitarian Crisis in Lebanon The United Nations has doubled its call for aid to Lebanon as it bids to stem a “severe and deteriorating” humanitarian crisis brought on by four months of war with Israel. The UN's Revised Aid Appeal The UN’s humanitarian agency OCHA said on Friday that it needs nearly $640m over the next six months. In March, as the hostilities broke out in response to the United States and Israeli attacks on Iran, the UN had said $308m would be needed. Original appeal: $308m Revised appeal: $640m Amount received so far: $185m The Impact of the Conflict Lebanon’s Ministry of Public Health reports that the death toll from Israeli attacks has risen to 3,526 people, with a further 10,733 wounded since March 2. More than one million people have been forced to flee their homes and remain displaced. The Strain on Essential Services “Repeated displacements, insufficient shelter capacity and limited prospects for safe return are deepening vulnerability,” OCHA said in a statement. “Affected people are rapidly exhausting their coping capacities, and essential services are under increasing strain”. The Economic and Health Consequences The UN said the economy was worsening the situation in Lebanon, as fuel and electricity prices have risen due to the effects of the US-Israeli war on Iran on global energy supplies. The strain on the healthcare economy has forced the closure of 62 hospitals that have been damaged or closed, according to OCHA. Lebanese health authorities also reported that more than 100 paramedics have been killed in the conflict. The Future Outlook Hezbollah has rejected the conditional ceasefire agreed by Lebanese and Israeli representatives in Washington on Thursday, instead demanding a full ceasefire and the full withdrawal of the Israeli army from the country.

The Lead: Trump's Wartime Coal Funding InitiativePresident Donald Trump is utilizing the Defense Production Act, a cold war-era statute typically reserved for national emergencies, to allocate $700 million in grants to coal-fired power plants across the United States. This move represents the latest effort by the administration to bolster what Trump calls "clean, beautiful coal," despite scientific consensus that coal remains the dirtiest of fossil fuels and a leading contributor to climate change.The Defense Production Act: A Novel Application for CoalTrump's announcement came during a White House press conference where he detailed how the $700 million investment would protect 14 coal plants and 42 coal mines across 10 states that all voted for him in the previous election. The funds will also finance the construction of two new coal plants in Alaska and West Virginia, as well as a new coal export terminal in Oakland, California, and the restart of an existing facility in Maryland."As a result of the $700m investment that I'm announcing today, we will protect 14 coal plants and 42 coalmines, a tremendous number, and build two new coal plants and one massive new export terminal," Trump stated.The administration's attempts to provide a cuddly rebranding to coal have even extended to creating a new mascot with giant eyes, called Coalie, and gushing social media posts that include an image of a lump of coal wearing sunglasses as if it were on the TV show Love Island."You're not allowed to say 'coal' within the Trump administration unless it's preceded by the words 'clean, beautiful,'" Trump said on Thursday. "Complicates our life, but it's good."Financial Implications: Cost of Coal vs. RenewablesDespite Trump's claims that the initiative will lower energy costs, energy experts maintain that coal plants are more expensive to build and operate than renewable power sources. The administration has previously doled out hundreds of millions of dollars to the coal industry, signed orders forcing ratepayers to pay extra for aging plants to remain operational, and dismantled environmental regulations limiting toxins from coal.The coal industry, however, applauded the new order, with Rich Nolan, chief executive of the National Mining Association, arguing that "coal generation shields consumers from the impacts of volatile energy prices and supply challenges" and will help meet increased electricity demand from the artificial intelligence sector.Environmental and Health ConsequencesEnvironmental groups have strongly criticized the administration's latest aid for coal, with Patrick Drupp of the Sierra Club calling it "disgusting and reprehensible" that taxpayer dollars are being given to "deadly and expensive coal plants that will make Americans sicker and drive up electricity prices even more."Scientific evidence shows coal is the most carbon-dense fossil fuel and a leading cause of the climate crisis when burned. Research has estimated that as many as 460,000 deaths in the US from 1999 to 2020 were attributable to air pollution from coal plants alone, which releases tiny toxic particles that sicken miners and trigger widespread respiratory and heart health problems.Future Outlook: Coal's Declining Market ShareDespite Trump's efforts to revive the coal industry, the sector continues to face significant headwinds. US coal production is currently less than half of what it was in 2008, with coal declining as both a fuel for electricity and as an input for manufacturing materials. The number of people working in coal has declined by more than 90% in the past century, with more people now employed at Waffle House restaurants across the US than in coal mining.Environmental advocates question the long-term viability of Trump's coal strategy, with Kit Kennedy of the Natural Resources Defense Council asking, "What's next, a taxpayer bailout to build new phone booths?" She characterized the move as "going to mean higher bills and dirtier air," calling it "a waste" of taxpayer resources.

The Summer Surge: 13% Rise in the UK Energy Price CapThe government’s energy regulator, Ofgem, announced that the cap on household gas and electricity prices will climb by 13% this summer, marking the steepest increase in four years.How Ofgem Calculates the New CapOfgem determines the maximum price a supplier can charge by averaging wholesale market costs in the months leading up to each cap period and adding the highest allowable daily standing charge.Numbers Behind the IncreaseAverage annual bill rises to £1,862 (July‑September).Electricity rate jumps from 24.67p/kWh to 26.11p/kWh.Gas rate climbs from 5.74p/kWh to 7.33p/kWh.Petrol price up ~20% to 159.43p/litre.Diesel price up >30% to 184.96p/litre.Unpaid energy debt reached a record £4.5bn earlier this year.Households contribute an annual £52 charge embedded in the cap to help repay debt.Broader Implications for Households and the Energy MarketThe higher cap will squeeze disposable income at a time when many families are already coping with record energy debt. It also signals that global supply shocks—particularly the war in Iran that has choked Gulf oil and gas exports—are being passed directly to consumers.What to Expect After September: Autumn Billing OutlookWhile the summer increase is painful, the real challenge looms in autumn when heating demand rises. Analysts warn that bills could climb further if wholesale prices stay elevated, prompting calls for additional consumer protections or targeted subsidies.