As reported by Energy Advice Line, rules imposed by the Financial Services Authority (FSA) are ‘preventing’ SMEs from successfully getting financial help. Spanish Bank Santander says small and medium sized businesses are still struggling to obtain bank finance because the FSA’s rules are too rigid.

The bank, which will control 8% of the UK’s lending market when it takes over 318 branches of the Royal Bank of Scotland next year, believes businesses across the UK are struggling to meet overheads such as business gas and electricity due to higher costs as well as the continued difficulty in getting finance from banks.

According to the Daily Telegraph, Santander is not allowing its bank managers to exercise discretion regarding how much, if anything, can be lent to companies as a result of ‘over-zealous’ FSA rules.

In a recent meeting, Steve Pateman, the head of corporate and commercial banking for Santander UK, told MP’s how the FSA would find it “unsatisfactory” if the bank let its regional managers make decisions on lending.

All four major high street business banks; Barclays, HSBC, Lloyds and RBS have said that they want to rebuild customer relationships at branch level following the head-office clampdown that was imposed on lending during the recession. However, this is proving difficult with FSA ruling.

A concerned Michael Fallon, senior MP on the Treasury Select Committee, said this issue would be raised with the committee accordingly.

Rejecting the claims, a spokesperson for the FSA said that maintaining the banks’ lending policies was up to the banks themselves and that the FSA remained focused on implementing appropriate risk management systems.

Source: Energy Advice Line

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BP is all set to release the internal investigation into the oil spill in the Gulf of Mexico, reports BBC News. Investigations into the oil spill have taken 5 months and the report is expected to lay the blame on BP and other companies involved in the operation.

The investigation will be an important piece of BP’s defence when it faces legal proceedings. These are likely to follow as the US Department of Justice is currently conducting a criminal investigation.

A BBC correspondent in Miami, Andy Gallacher, said the investigation is likely to focus on a combination of breakdowns and mistakes rather than one single factor. These factors are likely to include equipment failure and missed warning signs.

The well is set to be permanently sealed in the next few weeks.

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Source: BBC News Online

A Yorkshire-based company, which specialises in cabling systems for computer networks, has been bought out of administration by a group of senior employees at the firm, reports The Business Desk. Cable-Talk was established in 1996 to install high tech fibre optic and voice cabling for IT and telecommunications systems across the UK.

In 2008 Cable-Talk was acquired by Great North Solutions, a company that buys fast-growing businesses – in a £2.8 million deal backed by Co-operative Bank and Partnership Investment Finance.

However, last month the company, which has offices in Wakefield and London, passed to joint administrators David Wilson and Julian Pitts of leading business rescue, recovery and restructuring specialists Begbies Traynor.

But, managing director Steve Slater and director Lucy Alderton orchestrated an administration buy-out to enable the business to continue trading as Cable-Talk.

Mr Pitts, of Begbies Traynor, remarked:

“The employees, who are one of the business’s key assets, are well-placed to safeguard their own livelihoods, and were able to put together the best offer to buy the business”

Due to the early sale of the business, the administrators were not required to make any of the 13 salaried staff redundant. The company, which also boats a bank of experienced sub-contractors, will continue to operate from its bases at Calder Park, Wakefield and Merton, South London.

Source: The Business Desk

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According to Business Minister Mark Prisk, the headquarters of the Department for Business Innovation and Skills (BIS) have been turned into an exhibition of revolutionary products in an attempt to encourage a new generation of innovators.

This reinforces the Governments’ commitment to promote manufacturing in the UK which is critical to the country’s economic growth as well as responsible for 53% of all UK exports and 2.8 million jobs.

Acknowledging that there are new business opportunities, for example low carbon products, that are continually emerging, the BIS plans to work with the manufacturing industry to encourage both new talent as well as attract new businesses to the sector.

The exhibition marks the first event in a scheduled rolling programme of themed displays that have been designed to demonstrate excellence in British design, engineering and manufacturing.

The opening event’s theme has been based on the engineering supply chain with exhibits supplied by JCB and three other companies who form part of their supply chain: Craftsman Tools, Mazak UK, and Renishaw.

Business Minister Mark Prisk commented:

“Britain is a world leader in manufacturing but if we are to inspire future generations we must do all we can to promote UK excellence…

… As a signal of our intent we have invited shining examples of British design, engineering and manufacture to showcase their products at the department”

The BIS has already redirected savings within the department to strengthen investment in FE colleges as well as create 50,000 new apprenticeships.

Source: News Distribution Service (National News)

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Utility Exchange has been reporting since April on the oil spill in the Gulf of Mexico, see: http://www.utility-exchange.co.uk/news/. Now a US official leading the BP oil clean-up has said that the oil well poses no further threat to the environment, reports BBC News.

The announcement was made by Adm Thad Allen once engineers replaced a damaged valve on the sea bed. It was a similar blow out preventer that is believed to have caused the oil spill in the first place.

The faulty bow out preventer will be brought to the surface and examined to see why it failed in the first place. This is all part of the enquiry into the leak.

A second relief well will be used in the coming week to pump concrete into the well to ensure it’s sealed for good.

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Source: BBC News Online

Utility Exchange reported recently on a call by German business leaders for the German government to extend the life of its nuclear plants, see: http://www.utility-exchange.co.uk/2010/08/german-businesses-seek-nuclear-power-extension/. Now BBC News reports that the coalition government in Germany has agreed to extend the life of its nuclear power stations by an average of 12 years.

It means that under the extension some plants will remain in production until the mid 2030’s. The previous government had wanted nuclear power plants to be phased out by 2021.

The German Chancellor, Angela Merkel, said that sources of renewable energy are not developed enough yet and meant the country couldn’t do without nuclear power. She also announced that there would be new fees on utility companies to help fund renewable energy.

This nuclear fuel tax to be paid by energy companies will raise €2.3bn each year and go towards a special fund which will help to develop renewable energy. However, the energy companies are not happy with this tax or the fund.

The plans still require parliamentary approval.

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Source: BBC News Online

The government of Uganda has repossessed an oil field after Heritage Oil refused to pay a tax bill of £183m, reports The Daily Telegraph. The tax bill comes after the sale of Heritage Oil’s Ugandan assets to Tullow.

Tullow has paid Heritage Oil $1.45bn for a 50% stake in the oil fields near Lake Albert thus giving Tullow 100% ownership.

Tullow is now facing problems in its relationship with the Ugandan government and City analysts say Tullow may end up paying the Heritage bill in order to break the deadlock and release the oil field seized by the government.

The government has seized the licence for the Kingfisher block of oil fields close to a number of national parks and game reserves. As a result Tullow’s operations have stopped although they say this is just temporary.

Heritage believes the sale of its Ugandan assets was not taxable and is prepared to go to arbitration over the dispute. However, the Ugandan government says the tax bill must be paid by one of the parties otherwise licences won’t be awarded.

It must be annoying for Tullow because it’s planning to sell a 30% stake in the oil fields to the French oil company Total and another 30% to China’s CNOOC but the deals can’t go ahead while there’s a dispute.

A Tullow spokesman said “As disclosed at our results on Wednesday, the government of Uganda has been clear that the only issue remaining is with Heritage and their tax liability”.

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Source: The Daily Telegraph

Utility Exchange recently reported how Ayrshire Power’s plans for a coal-fired power plant in Scotland were already under attack after receiving thousands of objections, see http://www.utility-exchange.co.uk/2010/08/ plenty-of-objections-for-new-power-plant/. It transpires that The Church of Scotland is also against the proposals claiming that a new coal-fired power station could seriously jeopardise attempts to combat climate change, despite the use of clean-coal technology.

The church has joined a coalition of environmental groups who are opposing Aryshire Power’s plans to construct the 1852 MW (megawatt) station at Hunterston on the west coast of Scotland. The plans have so far received approximately 14,000 objections from across the UK and beyond.

Ayrshire Power, a wholly owned subsidiary of Peel Energy, plans to replace the nearby nuclear power station if its proposal for a coal-fuelled plant gets the go ahead – which is currently the only proposal in Britain since the UK and Scottish governments legislated to make deep cuts in CO2 emissions of at least 34% by 2020.

Public consultation closed on August 20, when in a rare move, one of the church’s most influential committees, the church and society council, wrote a formal letter opposing the plan with full approval of the church’s elected head, moderator the Right Rev John Christie.

The Church of Scotland joins fellow objectors including Christian Aid, Friends of the Earth Scotland, the Royal Society for the Protection of Birds, the Scottish Wildlife Trust, the World Development Movement and WWF – whose Scottish division is continuing to fight the £3 billion project.

Commenting on proposals, the church council’s convenor, Rev Ian Galloway, stated:

“The carbon emissions from this proposal could wipe out all the savings achieved by eco-congregations and other community groups across Scotland and jeopardise any attempt to inspire community engagement in climate change”

Source: Guardian (Environment, Coal)

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As reported by Electric; regulators and builders are apparently blaming each other for construction delays as designs await approval for UK nuclear reactors. The UK’s nuclear reactor building program is already behind schedule as the safety regulator confirms that the first reactor will not be built for some time.

The Health and Safety Executive (HSE) has suggested that it might have to issue an interim decision regarding the safety of two new proposed reactor designs next June. This comes as the regulator anticipates a significant amount of additional work that will need to be resolved before it can finally approve or reject the design. However, it is not certain how long this could take.

Kevin Allars, director of the assessment program, explained how companies would be able to continue planning and carrying out preparatory construction on proposed nuclear sites whilst waiting for a final decision but that construction of a reactor cannot start without consent.

Furthermore, Mr. Allars promised that they would avoid the chaotic construction that has consumed Finland. This was originally supposed to house Europe’s first new reactor in decades however, the Areva plant is more than three years behind schedule as well as £1.6 billion over budget. And, EDF who promised that the UK’s first reactor would be operational by 2017 has said that it will now be running by the end of 2018.

According to HSE, companies associated with the designs have repeatedly submitted information, but it has been incomplete and late. In response, these companies blame the regulator for not having sufficient resources to carry out the work.

Source: Electric

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The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) registration deadline is imminent – September 30, 2010 – however, businesses are hoping to be granted an extension after concerns about missing the cut off date.

Under the mandatory scheme, businesses will have to buy carbon allowances that equal their carbon emissions for the year. The aim is for businesses to change the way they behave by reducing their carbon emissions and consequently their business energy bills.

However, the Environment Agency has revealed that only 31% of the anticipated 5,000 full participants have successfully completed their registration. Furthermore, those who are obliged to follow the scheme but miss the deadline – could face being fined up to £45,000 and details of their non-compliance published.

Subjective evidence from energy firm, npower, implies that some businesses are still compiling data and that they are relying on the possibility that the Environment Agency will extend the deadline giving them more time to complete their submission.

Commenting on the issue, Dave Lewis, head of business energy services at npower, said:

“Businesses are working hard to get the necessary data together, but many are facing challenges in compiling all the information required. It’s likely that some will miss the deadline and secretly, many are hoping the Environment Agency will extend the registration period”

The CRC will have an impact on a number of the UK’s leading retailers, banks, service businesses and large public sector organisations. They will be required to purchase allowances to cover their CO2 emissions. As a result, the higher their emissions, the more allowances will be needed.

Participants of the schemes introductory phase has been determined using 2008 electricity consumption whereby organisations with at least one half-hourly settled meter and consumption of 6,000MWh or more through all half-hourly meters during this time, are required to participate.

npower, a leading integrated UK energy company, is now working with a number of businesses to support their CRC registrations. The energy supplier believes that part of the problem is down to companies failing to appreciate the full scale of the task.

Source: npower (Press Release)

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