May 17, 2020

Sanctions on Iran Dramatically Cut Oil Exports

energy digital
Energy
Oil
Iran
Admin
2 min
Iran's oil exports drop to 1990 levels
Iran's oil output has reached its lowest level in 20 years, according to independent data released today, signalling that economic sanctions on th...

 

Iran's oil output has reached its lowest level in 20 years, according to independent data released today, signalling that economic sanctions on the country are working. Typically, oil and gas accounts for more than half of Iran's export revenue.

The West has deepened sanctions against the country in reaction to its nuclear program, which Iran denies has any military aims. The European Union's ban on imports of Iranian oil has led to a 14 percent decline in the country's exports in March. The US has been pressuring others like Japan, China and India to follow suit, although the extent to which those countries need to ban Iranian crude is not clear. Japan's Ministry of Economy released data Thursday, revealing that the country imported 36 percent less oil from Iran in March than in the previous year. China's were cut by over half.

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However, state-owned National Iranian Oil Co. denies any drop in exports form Japan or China, Iran's two biggest customers, maintaining that the sanctions have had little effect. Mohsen Qamsari, international affairs director of the company, disputed official data from the Chinese government and reports from Japan regarding the cuts in Iranian crude. Qamsari even claims that exports to China have increased, he says on the oil ministry's official SHANA news website.

Despite Qamsari's claims that trade relations haven't changed with Japan, either, the Nikkei business daily has said that Iranian oil imports could have fallen as much as 80 percent in April.

In a Washington news conference on Monday with visiting Japanese Prime Minister Yoshihiko Noda, President Barack Obama said, “The regime in Tehran is now feeling the economic screws tighten, and one of the reasons is that countries like Japan made the decision to reduce oil imports from Iran."

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Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

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