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The reduction in the Ofgem price cap that will apply from April may be the final step on the long, ruinously expensive road to a new normal for consumer energy prices. 

The guide price for typical annual dual-tariff use of £1,690 – a fall of 12.3% from the previous cap – is a dramatic reduction from the peak of more than £4,000 that applied just a year ago and prompted multi-billion pound state support for every household in the country.

After bouncing between £1,800 and just shy of £2,000 in the three quarters since last June, this reduction, taken with projections of a further drop to around £1,500 in three months, could represent the floor for post-Ukraine invasion prices.

To be clear, a price that’s still considerably higher than the £993 we expected to pay in the winter of 2020-21 represents a dramatic, material and permanent increase in the cost of living, and a return to that level is unlikely as long as Russia is a global pariah at war.

Energy markets may look becalmed but volatility is in their nature.

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What is the price cap – and how will it affect my bills?

Energy price volatility temporarily subsides

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A warm, wet winter helped UK domestic gas demand fall 16% in 2023 compared to the pre-war average, but the weather has flattered UK energy security.

Much of the flow of gas from Russia has been replaced by liquid natural gas from Australia, the US and Qatar, and pipelines from Norway, all ostensibly friendlier nations, but the UK remains exposed to the kindness of strangers to heat homes and fire power stations.

The long-term answer is low-carbon and renewable energy sources, but while Vladimir Putin has provided the clearest motivation yet to accelerate, the transition has become significantly more expensive than anticipated.

The offshore wind industry in particular has had a brutal year with supply chain resources finite and finance, like power, no longer cheap.

For consumers, however, this lull may signal the return of a functioning competitive market among suppliers.

Since Russian tanks rolled into Ukraine the Ofgem figure has been a cap in name only.

In practice, it’s been a universally applied maximum charge, with the taxpayer picking up the balance of every pound over £2,500.

Lower wholesale prices, helped by the caprice of a mild winter, mean suppliers may have to work a little harder for your custom.

British Gas is already offering a fixed price guaranteed at £1 below the April price cap, while E.On is offering a 3% discount on the cap for a year.

Not much compared to the wild (and entirely unsustainable market) that existed before the war, but it is a start.

More than billpayers welcoming the fall

The reduction will be welcome at the Treasury too. Having set the precedent of paying our energy bills and allowing the national debt to balloon close to 100% of GDP in the process, there is no appetite to return to feeding the national meter.

With the cap now around half the more than £3,100 that applied in April last year there will be downward pressure on inflation too, though don’t expect the Bank of England to rush to cut rates as a consequence.

The biggest annual reduction in bills was factored into the figures for last October, helping drag CPI down from its 11% peak, and the Bank of England is already looking ahead to when the gravitational pull of energy prices falls out of the figures and secondary factors start to drive the headline rate.

There may also now be space for Ofgem and ministers, election permitting, to examine some of the remaining obvious flaws in the domestic market.

Electricity remains almost four times more expensive per unit than gas thanks to green taxes, despite gas being the fuel we need to remove from the network if net zero and energy security are genuine goals.

If the government is serious about incentivising the decarbonisation of home heating with heat pumps – an open question – these running costs will have to be addressed alongside installation grants.

And standing charges remain a regressive charge for billpayers, with electricity costing more than £3.50 a week before you have turned a light on, though the new cap makes that a slightly less terrifying prospect than a year ago.

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Nationwide police operation on grooming gangs announced

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Nationwide police operation on grooming gangs announced

A nationwide police operation to track down those in grooming gangs has been announced by the Home Office.

The National Crime Agency (NCA) will target those who have sexually exploited children as part of a grooming gang, and will investigate cases that were not previously progressed.

Home Secretary Yvette Cooper said in a statement: “The vulnerable young girls who suffered unimaginable abuse at the hands of groups of adult men have now grown into brave women who are rightly demanding justice for what they went through when they were just children.

“Not enough people listened to them then. That was wrong and unforgivable. We are changing that now.

“More than 800 grooming gang cases have already been identified by police after I asked them to look again at cases which had closed too early.

“Now we are asking the National Crime Agency to lead a major nationwide operation to track down more perpetrators and bring them to justice.”

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Starmer to launch new grooming gang inquiry

The NCA will work in partnership with police forces around the country and specialist officers from the Child Sexual Exploitation Taskforce, Operation Hydrant – which supports police forces to address all complex and high-profile cases of child sexual abuse – and the Tackling Organised Exploitation Programme.

It comes after Sir Keir Starmer announced a national inquiry into child sex abuse on Saturday, ahead of the release of a government-requested audit into the scale of grooming gangs across the country, which concluded a nationwide probe was necessary.

The prime minister previously argued a national inquiry was not necessary, but changed his view following an audit into group-based child sexual abuse led by Baroness Casey, set to be published next week.

Ms Cooper is set to address parliament on Monday about the findings of the near 200-page report, which is expected to warn that white British girls were “institutionally ignored for fear of racism”.

One person familiar with the report said it details the institutional failures in treating young girls and cites a decade of lost action from the Independent Inquiry into Child Sexual Abuse (IICSA), set up in 2014 to investigate grooming gangs in Rotherham.

The report is also expected to link illegal immigration with the exploitation of young girls.

Read more:
Telford child abuse victims speak out
What we know about grooming gangs, from the data
The women who blew whistle on Rotherham

Kemi Badenoch, the Conservative leader, said on Saturday that Sir Keir should recognise “he made a mistake and apologise for six wasted months”.

Speaking to Sky’s Sunday Morning With Trevor Phillips, Chancellor Rachel Reeves refused to say if the government will apologise for dismissing calls for a national public inquiry into grooming gangs.

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Rachel Reeves on Sunday Morning With Trevor Phillips

She said: “What is the most important thing here? It is the victims, and it’s not people’s hurt feelings about how they have been spoken about.”

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Career spy Blaise Metreweli to become first woman to head MI6

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Career spy Blaise Metreweli to become first woman to head MI6

Career spy Blaise Metreweli will become the first woman to head MI6 in a “historic appointment”, the prime minister has announced.

She will take over from Sir Richard Moore as the 18th Chief, also known as “C”, when he steps down in the autumn.

“The historic appointment of Blaise Metreweli comes at a time when the work of our intelligence services has never been more vital,” Sir Keir Starmer said in a statement released on Sunday night.

“The United Kingdom is facing threats on an unprecedented scale – be it aggressors who send their spy ships to our waters or hackers whose sophisticated cyber plots seek to disrupt our public services.”

Of the other main spy agencies, GCHQ is also under female command for the first time.

Anne Keast-Butler took on the role in 2023, while MI5 has previously twice been led by a woman.

Until now, a female spy chief had only headed MI6 – also known as the Secret Intelligence Service (SIS) – in the James Bond movies.

A motorboat passes by the MI6 building in Vauxhall, London. Pic: Reuters
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Blaise Metreweli is the first woman to be named head of MI6. Pic: Reuters

Dame Judi Dench held the fictional role – called “M” in the films instead of “C” – between 1995 and 2015.

Ms Metreweli currently serves as “Q”, one of four director generals inside MI6.

The position – also made famous by the James Bond films, with the fictional “Q” producing an array of spy gadgets – means she is responsible for technology and innovation.

Ms Metreweli, a Cambridge graduate, joined MI6 in 1999.

Unlike the outgoing chief, who spent some of his service as a regular diplomat in the foreign office, including as ambassador to Turkey, she has spent her entire career as an intelligence officer.

Much of that time was dedicated to operational roles in the Middle East and Europe.

Ms Metreweli, who is highly regarded by colleagues, also worked as a director at MI5.

Read more:
Ex-government contractor charged under Official Secrets Act
The Wargame podcast: What if Russia attacked the UK?
Chancellor dismisses ‘hurt feelings’ after grooming gangs inquiry U-turn

In a statement, she said she was “proud and honoured to be asked to lead my service”.

“MI6 plays a vital role – with MI5 and GCHQ – in keeping the British people safe and promoting UK interests overseas,” she said.

“I look forward to continuing that work alongside the brave officers and agents of MI6 and our many international partners.”

Sir Richard said: “Blaise is a highly accomplished intelligence officer and leader, and one of our foremost thinkers on technology. I am excited to welcome her as the first female head of MI6.”

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Woman, 23, dies after falling in water at beauty spot in Scottish Highlands

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Woman, 23, dies after falling in water at beauty spot in Scottish Highlands

A woman has died after falling into the water at a popular beauty spot in the Scottish Highlands.

The 23-year-old had fallen into the water in the Rogie Falls area of Wester Ross.

Police Scotland confirmed emergency services attended the scene after being called at 1.45pm on Saturday.

“However, [she] was pronounced dead at the scene,” a spokesperson said.

“There are no suspicious circumstances and a report will be submitted to the Procurator Fiscal.”

Rogie Falls are a series of waterfalls on the Black Water, a river in Ross-shire in the Highlands of Scotland. They are a popular attraction for tourists on Scotland’s North Coast 500 road trip.

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