Sunday newspaper round-up: Energy sector, EdF, Fracking

Industry sources are warning that the energy sector needs to know the details of the new Prime Ministers' plans to support businesses in order for them to take effect during the next winter. The government has indicated that a more complete plan for businesses will be announced as soon as possible. In another development, Centrica chief executive officer, Chris O'Shea, voiced support for using contracts for difference for long-term electricity prices as part of efforts to ensure lower prices for consumers over the years ahead. - The Sunday Telegraph

France's EdF is in talk with ministers regarding a voluntary limit on prices for its electricity. Ministers have promised that they will break the long-standing link between the price of low-cost energy, including that generated by wind and nuclear power, and that for natural gas, which has surged in the wake of the Russian invasion of Ukraine. EdF runs the UK's five remaining nuclear plants. Nonetheless, EdF's managing director, Matt Sykes, said EdF's output for the year ahead had already been sold at much lower prices than the going rate for gas. That, he explained, meant that the company had not benefitted from high, short-term prices. - Sunday Times

Fracking, the process by which shale gas is extracted, may overtake production from the North Sea within the next 15 years after the new Prime Minister lifted a controversial ban. According to data from National Grid, fracking's contribution to meeting the country's energy needs may match that of the North Sea by 2037 and then go on to surpass it during the following year. And Liz Truss has claimed that fracking may start making a contribution within six months, meaning that its peak production may be reached far sooner. - Financial Mail on Sunday

The Bank of England under Governor Andrew Bailey helped stabilise the UK economy amid the onset of the Covid-19 pandemic. With Bailey just days into the job, Bank launched its biggest round of quantitative easing ever, to the tune of £200bn. This time around however, the relationship between the BoE and Whitehall looks very different. Bank is selling bonds even as the new PM plans to raise as much as £200bn to help limit the impact of the energy crisis.- The Sunday Telegraph

Air carriers are heading into a bleak winter in the wake of the end of government support, analysts at Bernstein warn. A string of failures is possible should travellers cut back on flying amid higher household bills, they said. Adding to the sector's woes, autumn tends to be painful for companies in the sector regardless. That is because of the need to settle bills even as demand dwindles. Central and Eastern European carriers are at the highest risk, they added. RyanAir on the other hand was best placed to ride out the storm, followed by EasyJet, Jet2, IAG and TUI, in that order. - Financial Mail on Sunday