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UK Energy Price Cap aims to protect consumers on gas and electricity bills, tackling Big Six overcharging on default and standard variable tariffs, with Ofgem and MPs pushing urgent reforms to the broken market.

Key Points

A temporary absolute limit on default energy tariffs to shield consumers from overcharging on gas and electricity bills.

✅ Caps standard variable and default tariffs to protect loyalty.

✅ Targets Big Six pricing; oversight by Ofgem and BEIS MPs.

✅ Aims for winter protection while maintaining competition.

MPs are calling for a cap on the price of gas and electricity, with questions over the expected cost of a UK price cap amid fears consumers are being ripped off.

The Business, Energy and Industrial Strategy (BEIS) Select Committee says the Big Six energy companies have been overcharging for years.

MPs on the committee backed plans for a temporary absolute cap, noting debates over EU gas price cap strategies to fix what they called a "broken" energy market.

Labour's Rachel Reeves, who chairs the committee, said: "The energy market is broken. Energy is an essential good and yet millions of customers are ripped off for staying loyal to their energy provider.

"An energy price cap is now necessary and the Government must act urgently to ensure it is in place to protect customers next winter.

"The Big Six energy companies might whine and wail about the introduction of a price cap but they've been overcharging their customers on default and SVTs (standard variable tariffs) for years and their recent feeble efforts to move consumers off these tariffs has only served to highlight the need for this intervention."

The Committee also criticised Ofgem for failing to protect customers, especially the most vulnerable.

Draft legislation for an absolute cap on energy tariffs was published by the Government last year, and later developments like the Energy Security Bill have kept reform on the agenda.

But Business Secretary Greg Clark refused to guarantee that the flagship plans would be in place by next winter, despite warnings about high winter energy costs for households.

Committee members said there was a "clear lack of will" on the part of the Big Six to do what was necessary, including exploring decoupling gas and electricity prices, to deal with pricing problems.

A report from the committee found that customers are paying £1.4bn a year more than they should be under the current system.

Around 12 million households are stuck on poor-value tariffs, according to the report.

National assistance charity Citizens Advice said "loyal and vulnerable" customers had been "ripped off" for too long.

Chief executive Gillian Guy said: "An absolute cap, as recommended by the committee, is crucial to securing protection for the largest number of customers while continuing to provide competition in the market. This should apply to all default tariffs."

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Rooftop Solar Battery Backup helps Californians keep lights on during PG&E blackouts, combining home energy storage with grid-tied systems for wildfire prevention, outage resilience, and backup power when solar panels cannot supply nighttime demand.

Key Points

A home battery paired with rooftop solar, providing backup power and blackout resilience when the grid is down.

✅ Works when grid is down; panels alone stop for safety.

✅ Requires home battery storage; market adoption is growing.

✅ Supports wildfire mitigation and PG&E outage preparedness.

Californians have embraced rooftop solar panels more than anyone in the U.S., but amid California's solar boom many are learning the hard way the systems won’t keep the lights on during blackouts.

That’s because most panels are designed to supply power to the grid -- not directly to houses, though emerging peer-to-peer energy models may change how neighbors share power in coming years. During the heat of the day, solar systems can crank out more juice than a home can handle, a challenge also seen in excess solar risks in Australia today. Conversely, they don’t produce power at all at night. So systems are tied into the grid, and the vast majority aren’t working this week as PG&E Corp. cuts power to much of Northern California to prevent wildfires, even as wildfire smoke can dampen solar output during such events.

The only way for most solar panels to work during a blackout is pairing them with solar batteries that store excess energy. That market is just starting to take off. Sunrun Inc., the largest U.S. rooftop solar company, said some of its customers are making it through the blackouts with batteries, but it’s a tiny group -- countable in the hundreds.

“It’s the perfect combination for getting through these shutdowns,” Sunrun Chairman Ed Fenster said in an interview. He expects battery sales to boom in the wake of the outages, as the state has at times reached a near-100% renewables mark that heightens the need for storage.

And no, trying to run appliances off the power in a Tesla Inc. electric car won’t work, at least without special equipment, and widespread U.S. power-outage risks are a reminder to plan for home backup.

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Ontario Electricity Grid Decarbonization outlines the IESO's net-zero pathway: $400B investment, nuclear expansion, renewables, hydrogen, storage, and demand management to double capacity by 2050 while initiating a 2027 natural gas moratorium.

Key Points

A 2050 plan to double capacity, retire gas, and invest $400B in nuclear, renewables, and storage for a net-zero grid.

✅ $400B over 25 years to meet net-zero electricity by 2050

✅ Capacity doubles to 88,000 MW; demand grows ~2% annually

✅ 2027 gas moratorium; build nuclear, renewables, storage

Ontario will need to spend $400 billion over the next 25 years in order to decarbonize the electricity grid and embrace clean power according to a new report by the province’s electricity system manager that’s now being considered by the Ford government.

The Independent System Electricity Operator (IESO) was tasked with laying out a path to reducing Ontario’s reliance on natural gas for electricity generation and what it would take to decarbonize the entire electricity grid by 2050.

Meeting the goal, the IESO concluded, will require an “aggressive” approach of doubling the electricity capacity in Ontario over the next two-and-a-half decades — from 42,000 MW to 88,000 MW — by investing in nuclear, hydrogen and wind and solar power while implementing conservation policies and managing demand.

“The process of fully eliminating emissions from the grid itself will be a significant and complex undertaking,” IESO president Lesley Gallinger said in a news release.

The road to decarbonization, the IESO said, begins with a moratorium on natural gas power generation starting in 2027 as long as the province has “sufficient, non-emitting supply” to meet the growing demands on the grid.

The approach, however, comes with significant risks.

The IESO said hydroelectric and nuclear facilities can take 10 to 15 years to build and if costs aren’t controlled the plan could drive up the price of clean electricity, turning homeowners and businesses away from electrification.

“Rapidly rising electricity costs could discourage electrification, stifle economic growth or hurt consumers with low incomes,” the report states.

The IESO said the province will need to take several “no regret” actions, including selecting sites and planning to construct new large-scale nuclear plants as well as hydroelectric and energy storage projects and expanding energy-efficiency programs beyond 2024.

READ MORE: Ontario faces calls to dramatically increase energy efficiency rebate programs

Ontario’s minister of energy didn’t immediately commit to implementing the recommendations, citing the need to consult with stakeholders first.

“I look forward to launching a consultation in the new year on next steps from today’s report, including the potential development of major nuclear, hydroelectric and transmissions projects,” Todd Smith said in a statement.

Currently, electricity demand is increasing by roughly two per cent per year, raising concerns Ontario could be short of electricity in the coming years as the manufacturing and transportation sectors electrify and as more sectors consider decarbonization.

At the same time, the province’s energy supply is facing “downward pressure” with the Pickering nuclear power plant slated to wind down operations and the Darlington nuclear generating station under active refurbishment.

To meet the energy need, the Ford government said it intended to extend the life of the Pickering plant until 2026.

READ MORE: Ontario planning to keep Pickering nuclear power station open until 2026

But to prepare for the increase, the Ontario government was told the province would also need to build new natural gas facilities to bridge Ontario’s electricity supply gap in the near term — a recommendation the Ford government agreed to.

The IESO said a request for proposals has been opened and the province is looking for host communities, with the expectation that existing facilities would be upgraded before projects on undeveloped land would be considered.

The IESO said the contract for any new facilities would expire in 2040, and all natural gas facilities would be retired in the 2040s.

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U.S. Tariffs on Chinese EVs and Solar Cells target trade imbalances, subsidies, and intellectual property risks, bolstering domestic manufacturing, supply chains, and national security across clean energy, automotive technology, and renewable markets.

Key Points

Policy measures raising duties on Chinese EVs and solar cells to protect U.S. industry, IP, and national security.

✅ Raises duties to counter subsidies and IP risks

✅ Supports domestic EV and solar manufacturing jobs

✅ May reshape supply chains, prices, and trade flows

In a significant move aimed at bolstering domestic industries and addressing trade imbalances, the Biden administration has announced higher tariffs on Chinese-made electric cars and solar cells. This decision marks a strategic shift in U.S. trade policy, with market observers noting EV tariffs alongside industrial and financial implications across sectors today.

Tariffs on Electric Cars

The imposition of tariffs on Chinese electric cars comes amidst growing competition in the global electric vehicle (EV) market. U.S. automakers and policymakers have raised concerns about unfair trade practices, subsidies, and market access barriers faced by American EV manufacturers in China amid escalating trade tensions with key partners. The tariffs aim to level the playing field and protect U.S. interests in the burgeoning electric vehicle sector.

Impact on Solar Cells

Similarly, higher tariffs on Chinese solar cells address concerns regarding intellectual property theft, subsidies, and market distortions in the solar energy industry, where tariff threats have influenced investment signals across North American markets.

The U.S. solar sector, a key player in renewable energy development, has called for measures to safeguard fair competition and promote domestic manufacturing of solar technologies.

Economic and Political Implications

The tariff hikes underscore broader economic tensions between the United States and China, spanning trade, technology, and geopolitical issues. While aimed at protecting American industries, these tariffs could lead to retaliatory measures from China and impact global supply chains, particularly in renewable energy and automotive sectors, as North American electricity exports at risk add to uncertainty across markets.

Industry and Market Responses

Industry stakeholders have responded with mixed reactions to the tariff announcements. U.S. automakers and solar manufacturers supportive of the tariffs argue they will help level the playing field and encourage domestic production. However, critics warn of potential energy price spikes for consumers, supply chain disruptions, and unintended consequences for global clean energy goals.

Strategic Considerations

The Biden administration's tariff policy reflects a broader strategy to promote economic resilience, innovation, and national security in critical industries, even as cross-border electricity exports become flashpoints in trade policy debates today.

Efforts to strengthen domestic supply chains, invest in renewable energy infrastructure, and foster international partnerships remain central to U.S. economic competitiveness and climate objectives.

Future Outlook

Looking ahead, navigating U.S.-China trade relations will continue to be a complex challenge for policymakers. Balancing economic interests, diplomatic engagements, and environmental priorities, alongside regional public support for tariffs, will shape future trade policy decisions affecting electric vehicles, renewable energy, and technology sectors globally.

Conclusion

The Biden administration's decision to impose higher tariffs on Chinese electric cars and solar cells represents a strategic response to economic and geopolitical dynamics reshaping global markets. While aimed at protecting American industries and promoting fair trade practices, the tariffs signal a commitment to fostering competitiveness, innovation, and sustainability in critical sectors of the economy. As these measures unfold, stakeholders will monitor their impact on industry dynamics, supply chain resilience, and international trade relations in the evolving landscape of global commerce.

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Electric Vehicle Adoption Barriers include range anxiety, charging infrastructure, and cost parity; consumer demand, tax credits, lithium-ion batteries, and performance benefits are accelerating EV uptake, pushing SUVs and self-driving tech toward mainstream mobility.

Key Points

They are the key hurdles to mainstream EV uptake: range anxiety, sparse charging networks, and high upfront costs.

✅ Range targets of 300+ miles reduce anxiety and match ICE convenience

✅ Expanded home, work, and public charging speeds adoption

✅ Falling battery costs and incentives drive price parity

The automotive industry is hurtling toward a future that will change transportation the same way electricity changed how we light the world. Electric and self-driving vehicles will alter the automotive landscape forever — it's only a question of how soon, and whether the age of electric cars arrives ahead of schedule.

Like any revolution, this one will be created by market demand.
Beyond the environmental benefit, electric vehicle owners enjoy the performance, quiet operation, robust acceleration, style and interior space. And EV owners like not having to buy gasoline. We believe the majority of these customers will stay loyal to electric cars, and U.S. EV sales are soaring into 2024 as this loyalty grows.

But what about non-EV owners? Will they want to buy electric, and is it time to buy an electric car for them yet? About 25 years ago, when we first considered getting into the electric vehicle business with a small car that had about 70 miles of range, the answer was no. But today, the results are far more encouraging.

We recently held consumer clinics in Los Angeles and Chicago and presented people with six SUV choices: three gasoline and three electric. When we asked for their first choice to purchase, 40% of the Chicago respondents chose an electric SUV, and 45% in LA did the same. This is despite a several thousand-dollar premium on the price of the electric models, and despite that EV sales still lag gas cars nationally today, consumer interest was strong (but also before crucial government tax credits that we believe will continue to drive people toward electric vehicles and help fuel market demand).

They had concerns, to be sure. Most people said they want vehicles that can match gasoline-powered vehicles in range, ease of ownership and cost. The sooner we can break down these three critical barriers, the sooner electric cars will become mainstream.

Range
Range is the single biggest barrier to EV acceptance. Just as demand for gas mileage doesn't go down when there are more gas stations, demand for better range won't ease even as charging infrastructure improves. People will still want to drive as long as possible between charges.

Most consumers surveyed during our clinics said they want at least 300 miles of range. And if you look at the market today, which is driven by early adapters, electric cars have hit an inflection point in demand, and the numbers bear that out. The vast majority of electric vehicles sold — almost 90% — are six models with the highest range of 238 miles or more — three Tesla models, the Chevrolet Bolt EV, the Hyundai Kona and the Kia Niro, according to IHS Markit data.

Lithium-ion batteries, which power virtually all electric cars on the road today, are rapidly improving, increasing range with each generation. At GM, we recently announced that our 2020 Chevrolet Bolt EV will have a range of 259 miles, a 21-mile improvement over the previous model. Range will continue to improve across the industry, and range anxiety will dissipate.

Charging infrastructure
Our research also shows that, among those who have considered buying an electric vehicle, but haven't, the lack of charging stations is the number one reason why.

For EVs to gain widespread acceptance, manufacturers, charging companies, industry groups and governments at all levels must work together to make public charging available in as many locations as possible. For example, we are seeing increased partnership activity between manufacturers and charging station companies, as well as construction companies that build large infrastructure projects, as the American EV boom approaches, with the goal of adding thousands of additional public charging stations in the United States.

Private charging stations are just as important. Nearly 80% of electric vehicle owners charge their vehicles at home, and almost 15% at work, with the rest at public stations, our research shows. Therefore, continuing to make charging easy and seamless is vital. To that end, more partnerships with companies that will install the chargers in consumers' homes conveniently and affordably will be a boon for both buyers and sellers.

Cost
Another benefit to EV ownership is a lower cost of operation. Most EV owners report that their average cost of operation is about one-third of what a gasoline-powered car owner pays. But the purchase price is typically significantly higher, and that's where we should see change as each generation of battery technology improves efficiency and reduces cost.

Looking forward, we think electric vehicle propulsion systems will achieve cost parity with internal combustion engines within a decade or sooner, and will only get better after that, driving sticker prices down and widening the appeal to the average consumer. That will be driven by a number of factors, including improvements with each generation of batteries and vehicles, as well as expected increased regulatory costs on gasoline and diesel engines.

Removing these barriers will lead to what I consider the ultimate key to widespread EV adoption — the emergence of the EV as a consumer's primary vehicle — not a single-purpose or secondary vehicle. That will happen when we as an industry are able to offer the utility, cost parity and convenience of today's internal combustion-based cars and trucks.

To get the electric vehicle to first-string status, manufacturers simply must make it as good or better than the cars, trucks and crossovers most people are used to driving today. And we must deliver on our promise of making affordable, appealing EVs in the widest range of sizes and body styles possible. When we do that, electric vehicle adoption and acceptance will be widespread, and it can happen sooner than most people think.

Mark Reuss is president of GM. The opinions expressed in this commentary are his own.

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Income Graduated Fixed Charge aligns CPUC billing with utility fixed costs, lowers usage rates, supports electrification, and shifts California investor-owned utilities' electric bills by income, with CARE and Climate Credit offsets for low-income households.

Key Points

A CPUC proposal: an income-based monthly fixed fee with lower usage rates to align costs and aid low-income customers.

✅ Income-tiered fixed fees: $0-$42; CARE: $14-$22, by utility territory

✅ Usage rates drop 16%-22% to support electrification and cost-reflective billing

✅ Lowest-income save ~$10-$20; some higher earners pay ~$10+ more monthly

The Public Advocates Office (PAO) for the California Public Utilities Commission (CPUC) has proposed adding a monthly income-based fixed charge on electric utility bills based on income level.  

The rate change is designed to lower bills for the lowest-income residents while aligning billing more directly with utility costs. 

PAO’s recommendation for the Income Graduated Fixed Charge places fees between $22 and $42 per month in the three major investor-owned utilities’ territories, including an SDG&E minimum charge debate under way, for customers not enrolled in the California Alternative Rates for Energy (CARE) program. As seen below, CARE customers would be charged between $14 per month and $22 a month, depending on income level and territory.

For households earning $50,000 or less per year, the fixed charge would be $0, but only if the California Climate Credit is applied to offset the fixed cost.

Meanwhile, usage-based electricity rates are lowered in the PAO proposal, part of major changes to electric bills statewide. Average rates would be reduced between 16% to 22% for the three major investor-owned utilities.

The lowest-income bracket of Californians is expected to save roughly $10 to $20 a month under the proposal, while middle-income customers may see costs rise by about $20 a month, even as lawmakers seek to overturn income-based charges in Sacramento.

“We anticipate the vast majority of low-income customers ($50,000 or less per year) will have their monthly bills decrease by $10 or more, and a small proportion of the highest income earners ($100,000+ per year) will see their monthly bills rise by $10 or more,” said the PAO.

The charges are an effort to help suppress ever-increasing electricity generation and transmission rates, which are among the highest in the country, with soaring electricity prices reported across California. Rates are expected to rise sharply as wildfire mitigation efforts are implemented by the utilities found at fault for their origin.

“We are very concerned. However, we do not see the increases stopping at this point,” Linda Serizawa, deputy director for energy, PAO, told pv magazine. “We think the pace and scale of the [rate] increases is growing faster than we would have anticipated for several years now.”

Consumer advocates and regulators face calls for action on surging electricity bills across the state.

The proposed changes are also meant to more directly couple billing with the fixed charges that utilities incur, as California considers revamping electricity rates to clean the grid. For example, activities like power line maintenance, energy efficiency programs, and wildfire prevention are not expected to vary with usage, so these activities would be funded through a fixed charge.

Michael Campbell of the PAO’s customer programs team, and leader of the proposed program, likened paying for grid enhancements and other social programs with utility rate increases to “paying for food stamps by taxing food.” Instead, a fixed charge would cover these costs.

PAO said the move to lower rates for usage should help encourage electrification as California moves to replace heating and cooling, appliances, and gas combustion cars with electrified counterparts. In addition, lower rates mean the cost burden of running these devices is improved.

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