How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

Fracking moves forward with centralised decision making


The Government will have new powers to rule on shale gas permits. Plans for shale gas firm Cuadrilla Resources in the northwest may now move forward despite local planning decisions.

The business gas boom driven by shale gas (also known as fracking) – most notably in the US – has yet to take off in the UK despite indications of significant shale gas reserves in some areas.

Despite the Government’s preference for speedy exploitation of shale gas, local opposition has been fierce, likely a factor in local councils’ decision to deny planning permission for exploration, most recently in Lancashire.

Why shale gas?

Output from the ageing North Sea oil and gas is dwindling, leaving a potential shortfall in business energy that needs to be made up. Subsidies for renewable energy are steadily being removed – due in part to a Tory distaste for on-shore wind turbines – so the substitute of choice has become shale gas (see our guide to fracking).

As the process to provide planning permission for exploration at two sites in Lancashire dragged on and then ended in denial, Government frustration was palpable.

Cuadrilla, the company looking to exploit shale gas in Lancashire, has appealed and will argue again for shale exploration at a three-week public inquiry beginning in February. But most significant is the announcement that the central Government, in the form of Local Government Minister Greg Clark, will determine Cuadrilla’s appeal.

Impact on business gas

The decision to essentially remove Lancashire County Council from the process could have wide ramifications. The perceptions of going against local opinion could work against the Government’s oft-stated goal of devolution of decisions, especially in a region. But the time needed to move to the business of gas extraction could be significantly shortened.

How would this impact business gas prices?

Widespread fracking could offer a decent supply of business gas. But the benefits would likely lie more in security of supply than in better business gas rates – fracking elsewhere in world (notably the US) is already well established and less bound by strict regulation. And ‘traditional’ gas suppliers, such as Qatar and Russia, can supply business gas at a price that is likely to be below the cost of UK sourced shale gas, especially since the recent ‘gas glut’.

Those expecting a noticeable reduction in price may be sorely disappointed, both by the long wait for the gas business to actually arrive and the modest scale of price falls.

Expert advice is almost invaluable in navigating this confusing situation. All SwitchMyBusiness.com customers are always contacted ahead of their renewal date to ensure they have the option to switch to the cheapest energy supplier.

Our sector leading business energy switch service (we are the highest rated business energy provider on independent ratings site TrustPilot) brings average business energy savings of 26% in only 20 minutes. Give us a call on 0330 0100 251 (or request a call back using our form) now to start saving.

Our dedicated page has lots more information about business gas and business electricity.

 

Related Articles

the state of renewable energy

The state of renewable energy – infographic

Renewables are big business, and are increasingly viewed as commercially viable, as well as kinder to the envi...

Read More
the week's energy news

The Week’s Top Energy News – 02/12/2016

The Christmas season has well and truly begun and, in true business style, you’ll either be incredibly b...

Read More
how to motivate your team

21 easy ways to motivate your team

Being a manager is tough, and understanding how to motivate staff isn’t necessarily straight forward. It...

Read More
Excellent, 9.6 / 10

Excellent Service

"Many thanks to Anthony Pendleton, very courteous and polite, explained everything in right amount of detail and very helpful in sorting out the business utility switch. Would thoroughly recommend."

This review was posted by Nicola on the 28th of November 2016

Switch Electric

"Rachael Grindrod was excellent, very friendly and helpful."

This review was posted by Maria Allen on the 29th of November 2016

Uswitch electric

"Thanks to Jonathon Burgess who was a great help switching electricity for a charitable organisation. The process was complicated and his patience was appreciated as well as his proffesional attitude. We would not have completed the process without his help. Thanks Dawn"

This review was posted by Dawn Kerr on the 29th of November 2016

Great service from Rachel Grindrod. Thanks.

"Great service Rachel"

This review was posted by Craig Hewett on the 30th of November 2016

Easy to Switch

"Using SwitchMyBusiness made changing electricity suppliers easy. Thank you Anthony Pendleton for your professional approach with advising on which supplier to use."

This review was posted by Vanessa Gernat on the 01st of December 2016