Still, even I can’t deny that there’s something magical about the twinkling fairy lights and the scent of pine that softens the seasonal cynicism. Reflecting on this festive edition, my thoughts turn to my new granddaughter. This year has been unpredictable and challenging, and perhaps it’s time to pen a letter to Santa, who just might offer some much-needed help.
Dear Santa,
Alongside the good cheer – bring meaningful support for rural communities facing rising living costs.
We know your sleigh runs on magic, Santa, but down here, things are a little more complicated. The Databank in this edition shows a significant drop in UK fuel sales over the summer and early autumn, even as prices returned to more typical patterns. While milder weather has played a role, the larger issue is that ordinary people are struggling. Total domestic energy consumption in Q2 was 15% lower than the same period last year – the lowest this century.
As I write ahead of the budget, the Chancellor has signalled support on the cost of living, and there’s speculation that VAT may be removed from electricity but not heating oil. This presents a tough reality for our customers, many of whom live in pre-1919 homes that are notoriously difficult to heat.
These households face higher costs simply because of where they live, compounded by limited public transport and patchy electricity infrastructure. They deserve equal consideration.
In Ireland, the story’s much the same. Gas and electricity benefit from a lower VAT rate. There’s no justification for this disparity.
With good tidings – bring pragmatic, cost-effective rural decarbonisation policies that rural communities can truly welcome.
Rural communities are too often overlooked in policymaking. The previous government proposed banning boiler replacements for oil-heated homes, which would have forced households to install heat pumps, while ignoring the real challenges, such as the enormous upfront cost (over £20,000) and the lack of guaranteed ongoing savings.
It’s encouraging to see the current government remove some of these issues in their recent Carbon Delivery Plan. However, there is still a real reluctance to acknowledge that rural homes are different and that a one-size-fits-all low-carbon solution won’t work or be welcomed by these communities.
Our industry has provided the Government with a practical, ready-to-implement roadmap centred around choice in rural decarbonisation. At its core is a proposal to support oil-heated households in switching to cleaner, renewable fuels. A solution successfully demonstrated in rural homes across the country and increasingly adopted in the transport sector. This approach can be executed quickly and affordably by the 20,000 skilled professionals in our sector, without necessitating the removal of existing boilers or imposing just one solution.
Above all, the Government must prioritise listening to and delivering for rural communities.
In Ireland, the government has begun this process, but it needs to go further. The new Renewable Heat Obligation is a step forward, but current levels make investment hard to justify. A small adjustment could unlock real progress.
So, Santa, if you’ve got a little policy magic in your sack, now’s the time to sprinkle it.
“THERE’S SOMETHING MAGICAL ABOUT THE TWINKLING FAIRY LIGHTS AND THE SCENT OF PINE.”
Instead of the Figgy Pudding – bring us a smarter, more resilient energy future.
This year has seen the closures of Grangemouth and Dalston, as well as the liquidation of Lindsey Oil Refinery and associated terminals. As an industry, we have shown remarkable resilience over recent years, successfully handling and mitigating numerous challenges, but perhaps this success has created a false sense of security. The reality is that the UK’s supply situation is stretched, if not beyond its limits.
There is a clear need for a form of central oversight, akin to what exists for gas and electricity, that balances and accommodates supply constraints. We’re not calling for regulation, but rather for coordination. A central hub that integrates weather forecasts, port conditions, refinery status and demand projections could provide the vital early warning necessary to address supply challenges. This is not just a stocking filler – it’s a system safeguard.
And Santa, let’s not forget the dedicated people who keep the fuel flowing.
To the drivers, depot teams, technicians, trainers and customer support staff across our industry who brave the toughest conditions to keep homes warm – these are the unsung heroes of winter. If anyone deserves a mince pie and a thank-you note, it’s them!
Please, Santa, visit the villages, the hamlets, the crofts – not just the towns.
Lastly, a sincere thank you to Dawn, Jon, June, Katie, Caroline and Sharon for their tireless work at UKIFDA this year. You’ve all earned a place on the nice list.
Merry Christmas to all.
Ken
