‘No question of lights going out this winter’ business secretary declares – as gas prices soar
There is “absolutely no question of the lights going out this winter” and the energy price cap will remain in place despite escalating gas prices, the business secretary has said.
Kwasi Kwarteng said the cap “protects millions of consumers” and reiterated “the need for us all to prioritise consumers” during crisis talks with industry figures.
Following the talks, he told the House of Commons: ”We have sufficient capacity, and more than sufficient capacity, to meet demand and we do not expect supply emergencies to occur this winter.
“There’s absolutely no question of the lights going out or people being unable to heat their homes.
”There’ll be no three-day working weeks or a throwback to the 1970s. Such thinking is alarmist, unhelpful and completely misguided.”
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Energy boss: It’s ‘crunch time’ for many small providers
Labour’s Ed Miliband accused the government of complacency and said it had known for a long time about the issue with gas.
Mr Kwarteng added that the UK “benefits from having a diverse range of gas supply sources” and gas production in Norway will “significantly increase” from 1 October to support UK and European demand.
Wholesale prices for gas have increased 250% since the start of the year and there has been a 70% rise since August.
Consumers are protected from sudden price hikes by the energy price cap, but this puts pressure on suppliers as they cannot pass on the increase in wholesale gas prices to customers.
The rise has been put down to a number of factors, including a cold winter leaving stocks depleted, high demand for liquefied natural gas from Asia and a drop in supplies from Russia.
Four firms have already gone bust and there are fears that others could follow suit, with energy company Bulb, which has 1.7m customers, confirming it is seeking a bailout to stay afloat.
But Mr Kwarteng said the government “will not be bailing out companies, there are no rewards for failing”.
He did not say if this applied to the big energy companies as well as the small ones.
Boris Johnson told Sky News political editor Beth Rigby, in New York, where he is for a UN climate change meeting: “I think you need to listen to what Kwasi Kwarteng has to say, he’s been working flat out with the energy companies, doing everything he can to help them.
“Clearly, their business model has been badly affected with the wholesale price massively increases, spikes in this way and loads of customers on fixed tariffs.
“We’re working very hard to find a way through, trying to keep a steady supply of gas.”
Some analysts have reportedly predicted the number of energy companies could drop by three quarters in the months to come, leaving as few as 10 still operating.
Mr Kwarteng said: “As I said, you may see more suppliers than usual exiting the market but this is not something which should be any cause for alarm.”
He added that he will be releasing a joint statement with regulator Ofgem later on Monday.
On Monday, Ofgem said British Gas will take over the 350,000 domestic customers of People’s Energy after it went bust earlier this month.
Speaking on Sunday after a meeting with Ofgem, Mr Kwarteng said “well-rehearsed plans” were in place to ensure consumers were not cut off in the event of further failures.
However, he is expected to come under pressure from the big suppliers for a major government support package to help them through the crisis.
Asked about the issue as he arrived in New York for the United Nations General Assembly, Prime Minister Boris Johnson said: “I think people should be reassured in the sense that yes there are a lot of short-term problems not just in our country, the UK, but around the world caused by gas supplies and shortages of all kinds.
“This is really a function of the world economy waking up after COVID.
“We’ve got to try and fix it as fast as we can, make sure we have the supplies we want, make sure we don’t allow the companies we rely on to go under. We’ll have to do everything we can.
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Minister: ‘Range of options’ for energy crisis
“But this will get better as the market starts to sort itself out, as the world economy gets back on its feet.”
Labour’s shadow business secretary Ed Miliband said a lack of long-term planning from the government means “we are so exposed and vulnerable as a country and it is families and businesses that are paying the price”.
He continued: “The government must take all necessary steps to ensure stability for customers and do everything in its powers to mitigate the effects of this crisis on businesses and consumers.
“Yet it is making the squeeze on household finances worse by putting up taxes for working people and cutting Universal Credit.”
Bitcoin needs to close above the key $81,000 weekly level to avoid more downside volatility ahead of next week’s Federal Open Market Committee (FOMC) meeting, which will offer investors more cues on the Federal Reserve’s monetary policy for 2025.
Bitcoin (BTC) price fell over 3% during the past week, to trade above $83,748 as of 9:33 a.m. in UTC, Cointelegraph Markets Pro data shows.
Bitcoin price continues to risk significant downside volatility due to growing macroeconomic uncertainty around global trade tariffs, according to Ryan Lee, chief analyst at Bitget Research.
BTC/USD, 1-year chart. Source: Cointelegraph
Closing the week above $81,000 will be key to avoid more Bitcoin downside, the analyst told Cointelegraph, adding:
“The key level to watch for the weekly close is $81,000 range, holding above that would signal resilience, but if we see a drop below $76,000, it could invite more short-term selling pressure.”
The analyst’s comments come days ahead of the next FOMC meeting scheduled for March 19. Markets are currently pricing in a 98% chance that the Fed will keep interest rates steady, according to the latest estimates of the CME Group’s FedWatch tool.
Source: CME Group’s FedWatch tool
The outcome of the meeting may significantly impact Bitcoin investor sentiment, said Lee, adding:
“The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets.”
“Even a dovish surprise, like a rate cut, might not be the immediate boost some are hoping for, as investors are still weighing macro uncertainties,” added the analyst.
Related: US Rep. Byron Donalds to introduce bill codifying Trump’s Bitcoin reserve
Bitcoin close above $85k may reignite investor optimism for more upside: analyst
Other analysts are seeing a silver lining in Bitcoin’s stagnant price action.
A weekly close above $85,000 may inspire more investor confidence and lead to the next breakout, according to Enmanuel Cardozo, market analyst at Brickken real-world asset tokenization platform.
The market analyst told Cointelegraph:
“Traders and investors alike are keeping a close eye on the $80,000 support and the $85,000–$90,000 resistance, with a break above the latter potentially sparking a strong upward movement.”
While Bitcoin’s short-term momentum may be limited by the upcoming economic releases, the regulatory developments around Trump’s Bitcoin reserve plan may gradually bring more market optimism and mass adoption, added the analyst.
Related: Bitcoin’s next catalyst: End of $36T US debt ceiling suspension
Trump’s Bitcoin reserve came one step closer to fruition on March 14, after US Representative Byron Donalds introduced a bill that seeks to ensure the Bitcoin reserve becomes a permanent fixture, preventing future administrations from dismantling it through executive action.
If the bill is passed, it would ensure that the Strategic Bitcoin Reserve and the US Digital Asset Stockpile could not be eliminated via executive actions by a future administration.
The bill will require at least 60 votes in the Senate and a House majority to pass. With Republicans holding a Senate majority — and amid a generally more crypto-friendly environment — the bill has a chance of passing.
Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1
David Sacks and his venture capital firm sold over $200 million in crypto and crypto-related stocks before he commenced his role as the White House AI and crypto czar, a White House memorandum disclosed.
“You and Craft Ventures have divested over $200 million of positions related to the digital asset industry, of which $85 million is directly attributable to you,” said the memorandum dated March 5.
Crypto sell-off in an effort to prevent conflict of interest
The memorandum said “significant steps” were taken to reduce potential conflicts of interest before Sacks began his tenure as the White House AI and crypto czar — in which a major part of his role is to help create a legal framework for the crypto industry.
Sacks offloaded all the “liquid cryptocurrency” in his portfolio, as well as Craft Ventures’ portfolio — the investment firm he co-founded in 2017 — including holdings in Bitcoin (BTC), Ether (ETH), and Solana (SOL) before US President Donald Trump’s inauguration on Jan. 20.
The memorandum outlined which cryptocurrencies and crypto-related stocks David Sacks sold prior to Trump’s inauguration. Source: The White House
Since Trump’s inauguration, the crypto market has seen a major decline amid a broader market downturn, with many blaming Trump’s proposed tariffs and uncertainty over US interest rates.
While Bitcoin tapped a new all-time high of $109,000 just hours before Trump was sworn in as the 47th US president, it recently dipped below $80,000 on Feb. 27, erasing all post-election gains. At the time of publication, Bitcoin is trading at $84,155, as per CoinMarketCap data.
Sacks also divested from publicly traded crypto-related firms, including Coinbase (COIN), Robinhood (HOOD), and stakes in private digital asset companies.
Additionally, he sold his limited partner interest in Solana-focused Multichain Capital and crypto-focused venture capital firm Blockchain Capital. At the same time, Craft Ventures offloaded its holdings in Multichain Capital and Bitwise Asset Management.
Sen. Warren urged Sacks to prove he no longer holds crypto
The memorandum is dated one day before Massachusetts Senator Elizabeth Warren urged Sacks in a March 6 letter to prove he no longer holds any digital assets, following Sacks’ claim in an X post that he sold off all his crypto.
“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge,” Warren said.
Since Sacks started the White House crypto role, he has been a vocal advocate on various issues in the crypto industry, from the importance of a Strategic Bitcoin Reserve to not over-taxing the crypto industry.
Related: Bitcoin panic selling costs new investors $100M in 6 weeks — Research
Sacks recently shut down the idea of crypto transaction taxes on an episode of the All In Podcast after host Jason Calacanis proposed charging a 0.01% tax on every cryptocurrency transaction.
“That’s always how taxes start. They are described as being very modest,” Sacks said.
“You know, when the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people,” Sacks added.
Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why
Politics
Starmer to host virtual meeting of ‘coalition of the willing’ – and demand ‘concrete commitments’ on Ukraine
Sir Keir Starmer will host a virtual meeting of world leaders to discuss peacekeeping in Ukraine, and he will use the call to say that now is the time for “concrete commitments”, Downing Street has said.
Around 25 leaders are expected to join the call on Saturday morning, in which they will discuss in more detail the peacekeeping mission the prime minister has called the ‘coalition of the willing’.
Sir Keir will ask allies to continue to ramp up military support to Ukraine.
He will also say countries need to increase economic pressure on Russia in the short term, and be prepared to support an eventual peace deal over the long term, should an agreement be reached.
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Attendees will also receive an update on the discussions of defence ministers and military chiefs in Paris this week, and they will all set out details of their own efforts to unlock further military support for Ukraine.
Downing Street has confirmed that some European countries, the EU Commission, NATO, Canada, Ukraine, Australia and New Zealand are expected to join the virtual meeting.
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Is a ceasefire in Ukraine still viable?
Starmer: The world needs to see action
In a statement ahead of the call, the prime minister said: “We can’t allow President Putin to play games with President Trump’s deal.
“The Kremlin’s complete disregard for President Trump’s ceasefire proposal only serves to demonstrate that Putin is not serious about peace.
“If Russia finally comes to the table, then we must be ready to monitor a ceasefire to ensure it is a serious and enduring peace, if they don’t, then we need to strain every sinew to ramp up economic pressure on Russia to secure an end to this war.”
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Peace ‘must be secure’, PM tells Sky News
He went on to accuse the Russian president of “trying to delay” by “saying there must be a painstaking study before a ceasefire can take place”.
“The world needs to see action, not a study or empty words and pointless conditions,” he continued.
“My message to the Kremlin could not be clearer: stop the barbaric attacks on Ukraine, once and for all, and agree to a ceasefire now. Until then, we will keep working around the clock to deliver peace.”
Sir Keir has said Britain could send peacekeepers to Ukraine in the event of a ceasefire deal, but has called on Washington to offer a security ‘backstop’ to those forces.
Russia casts doubt on potential ceasefire
The meeting comes after Ukraine backed the US’s proposal for a 30-day ceasefire.
But the Russian president has said “lots of questions” remain over that proposal, and that a ceasefire must lead to “long-term peace” which “would remove the initial reasons for the crisis”.
Read more:
The ‘coalition of the willing’ that could secure peace in Ukraine
Russia sticks to red lines on 30-day Ukraine ceasefire plan
Trump’s fixer was made to wait eight hours to meet Putin
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Putin lists ceasefire conditions
Moscow has reportedly also presented a “list of demands” to the US to end the war, which would include international recognition of Russia’s claim to Crimea and four Ukrainian provinces and an agreement that foreign troops not be deployed in Ukraine.
Ukraine’s president Volodymyr Zelenskyy said Mr Putin’s remarks were “very predictable” and “very manipulative”, adding that the Russian president was preparing to reject the ceasefire proposal he agreed with the US.
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