Great news on rural fuel rebate - NE48 region gets reduced fuel costs - my letter from Treasury

Dear Guy

RURAL FUEL REBATE SCHEME – FULL EU APPROVAL
As you are aware, the Government submitted an application to the European Commission last year for seventeen of the most rural areas on the UK mainland to receive a 5 pence per litre fuel duty rebate. I am delighted to confirm that the Council of the European Union has now given its full approval to the Government’s application.
The scheme will be implemented in the UK on 1st April this year, with retailers in NE48 in your constituency eligible for registration. Full instructions on how retailers can start claiming the rebate have been published on the HMRC website https://www.gov.uk/government/publications/revenue-and-customs-brief-3-2015-rural-fuel-duty-relief-scheme/revenue-and-customs-brief-3-2015-rural-fuel-duty-relief-scheme
 
I am sure you will agree that this excellent news for motorists in remote areas of the UK who are facing particularly high pump prices. I would like to thank you for your continued support during this process.
DANNY ALEXANDER

The end of a very long campaign - my thanks to all the people who have helped make the case for better treatment and help for truly rural areas.
 

Cheaper Oil and Petrol is great for Northumberland - bad news for SNP / Scottish Independence / Salmond / Sturgeon etc

The crash in pump prices is giving the UK economy — already Europe’s strongest — a shot in the arm which will benefit every household in the land. … All this will give the Coalition Government, and the hard pressed taxpayer, a happy New Year as businesses take a boost, tax revenues flow and the deficit finally starts tumbling.

Yet the very basis for Mr Salmond’s reputation as a political prophet has been shattered by the crash in oil prices, which is literally tumbling by the day:
http://www.telegraph.co.uk/finance/newsbysector/energy/11308952/Opec-Oil-plummets-after-Saudis-says-20-crude-is-possible.html

Tough to argue with this commentary. And remember Scotland's independence was meant to be secured on permanently high oil prices. The honest truth is that Alex Salmond has zero economic credibility.

In Northumberland Heating Oil / petrol and diesel prices continue to fall

This is very good news for car drivers, businesses, farmers and homeowners in Northumberland as a car or oil fired heating are necessities for so many here - not luxuries. I continue to apply pressure on the oil companies to pass on the reduction in cost to the consumer at the pumps, but there is no doubt heating oil, and petrol for the car are much cheaper than they were a year, 2 or particularly 3 years ago. A slump in prices to levels around $40 per barrel of oil would be a boost for the UK economy and could see petrol prices drop close to £1 per litre providing relief to motorists. I recently met with many of the heating oil buying clubs and I am pleased to see that the minimum delivery price has dropped below £300.

The interesting question is why does the price keep falling? The key change is the impact of shale gas: it has made the USA energy independent and not an importer of foreign oil. At the same time there is the impact of sanctions on Russia, and the decisions of the OPEC Sheikhs. However, this will impact on the North East and Scotland as North Sea Oil and Gas will be affected in its margins and profitability. In that context I am pleased that the Infrastructure Bill is progressing as this will implement much of the Wood Review to assist our Oil and Gas producers and suppliers.

The papers examine this story in detail here: http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/11292837/Opec-willing-to-push-oil-price-to-40-says-Gulf-oil-minister.html

Good news as Oil Price falls - petrol costs so dependent on easing middle east tensions

My constituents want cheaper petrol and diesel, and the biggest issue in price of these items is the base price of the commodity. The price per barrel of oil is key and the Middle East problems of Libya, Syria, Egypt and Iran - amongst others - have massively affected the oil price.

The immediate impact of the improvement in relations with Iran was a reduction in Brent crude oil as it fell by around $3 per barrel; the historic nuclear deal drawn up between Iran and the major world powers has eased oil supply worries. The deal curbs the Middle Eastern regime’s nuclear enrichment activities in return for a partial lifting of trade sanctions for a six-month period. It prevents Iran from enriching uranium to weapons-grade level, eases sanctions and affects us as consumers here in Northumberland and around the world.

The accord should unlock 800,000 barrels a day of global supply by next year in a market of 89m, rising over time as foreign firms return and the country’s ruined oil industry comes back to life.
The analysts Citigroup said the Geneva deal should cut global oil prices by $13 over time, enough to depress Brent crude below $100 and US crude below $85.
The reason for the agreement is becuase of nuclear weapon concerns. But the consequential benefit will be felt in the North East

Energy Bill - thoughts on a speech?

In 2 weeks parliament is debating the Energy Bill, and I am inviting contributions on the content of my speech on this issue. I can think of few more important Bills going through the parliament on a multitude of levels. It addresses national issues of huge importance, and local issues that matter tremendously to the local people I try to represent in Northumberland.
On the one hand is government's fundamental obligation to keep the lights on.
On the other is our desire to tackle climate change.
Whilst we have to acknowledge that all governments have to address declining oil reserves, the legacy that comes with nuclear power, the carbon impact of coal, the innate difficulties of fracking and the unintended consequences of using all our trees for biomass plants.
Balance that with our upset in rural Northumberland that we have random applications for wind farms that are, at best, inefficient and, at worst, an expensive eye sore.
Talk to the miners and there are the arguments from local Labour MPs that we need a return to more coal mining, whilst the citizens of Whittonstall and Halton Lea Gate would disagree.
Add in the problems of the rising prices of the most important energy of all - the petrol / oil and diesel that runs our vehicles and heats our homes... not to mention the thousands of my constituents who are off grid and relying on unregulated LPG.
Who would be the lead energy minister? In cabinet this is Ed Davey. He is a decent man, doing a very difficult job.

Some of you will have read previous speeches I have given on this issue: a full list of the speeches on fuel poverty, biomass, the actions of the heating oil companies, fracking, my clashes with Caroline Flint, Labour's shadow energy minister, LPG, wind farms, the weakness of the OFT, issues in rural Northumberland, off grid heating, open cast and lots more are set out on They work for you:
http://www.theyworkforyou.com/search/?s=%28%28energy%29%29+&pid=24962&p=1

But I have decided to take a different approach to the speech in a couple of weeks time.
I am meeting on Friday 24th with a number of the representatives of the heating oil buying groups in Northumberland to try and get their specific input. Bear in mind that Mike Murray and Lauren Langton have already become the unofficial key advisers to the Energy and Climate Change Select Committee and recently Lauren met with the Energy Minister, Michael Fallon.
I have specifically asked them to give me information - both for onward transfer to the Ministers and the OFT, and also for potential inclusion in an energy bill speech.
As always the creation of a 6-10 minute speech is a composite effort of a variety of influences but I welcome the input of constituents one and all. My email, as everyone I hope knows, is guy.opperman.mp@parliament.uk

Details on the Energy Bill can be found here: https://www.gov.uk/government/organisations/department-of-energy-climate-change/series/energy-bill