Good morning.
The energy standoff between Russia and the rest of Europe continues to spiral. At the end of July, Russia further reduced supply to the continent, making it harder – and more expensive – for countries to ensure reserves of gas ahead of the winter.
In the UK, the government has offered a trickle of policies that are supposed to lighten the load, including a one-off £400 energy bill discount for households and windfall taxes on energy companies that are reporting exceedingly high profits. But is this enough – and how is the rest of the world coping? In today’s newsletter we outline the measures taken by five other countries to address the global energy crisis.
Five big stories
NHS | The health minister Maria Caulfield has admitted that 34 hospitals have roofs made of concrete that are so badly maintained they could collapse at any moment.
Salman Rushdie | The author’s “road to recovery has begun” but “will be long” after his stabbing in western New York, the novelist’s agent has said. “The injuries are severe,” Andrew Wylie told the Guardian in an email – Rushdie received “life changing” injuries to his neck, stomach, eye, chest and thigh. “But his condition is headed in the right direction.”
Water | A Lib Dem councillor has called for Thames Water to be fined after it cut water supplies leading to hundreds of households in Surrey having to go three days without tap water at the height of the heatwave.
Labour | Keir Starmer has set out a £29bn proposal that Labour says would avoid people having to pay “a penny more” on their energy bills this winter. It includes an £8bn windfall tax on energy company profits and insulating 19m homes over the next decade.
Immigration | Data released by the ONS shows there has been a dramatic drop in EU citizens moving to the UK. Last year 43,000 EU citizens received visas for work, family, study or other purposes, in comparison with 230,000 to 430,000 between 2014-2020.
In depth: From nationalising utilities to aircon bans, how other countries are coping
With reports that energy bills are going to cost the equivalent of two months’ wages by next year, it seems increasingly important that the British government takes a preemptive, rather than reactive, approach to the crisis. So what’s everyone else doing?
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Germany
In 2020, Russia supplied over 50% of Germany’s natural gas, roughly a third of all oil, and almost half of all of its coal imports. So when Russia cut gas supplies to Germany at the end of July, the results were catastrophic. In response, the German chancellor, Olaf Scholz, has been labouring to wean the country off its heavy reliance on Russian exports of oil and gas. He has assured German citizens that they won’t be left without energy this winter or with extortionate bills landing on their doorstep.
The first thing Scholz did was to pass emergency legislation to reactivate closed oil and coal power plants. It’s not ideal – the government’s environmentalist economics minister, Robert Habeck, has described the move as “painful but necessary”— but it is an effective way of alleviating some pressure in the short term. Scholz has also indicated that he is considering U-turning on Germany’s policy to phase out nuclear energy, and lengthening the lifetime of the country’s only three remaining nuclear plants.
The German government is aware these are temporary responses to stop the bleeding. Looking ahead, a central part of Germany’s long term plan is to achieve energy sovereignty by investing in and scaling up the generation of renewable energy. The government is installing more solar and wind energy farms and has recently released an energy efficiency support package of $180bn to Germany’s climate and transformation fund.
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France
There are various factors exacerbating the energy crisis in France, and fewer than half of the country’s nuclear reactors are up and running because of maintenance issues.
France has decided the best way to mitigate wider economic damage is to cap retail energy prices. This move has already played a crucial role in insulating France from the energy price shock afflicting the rest of the continent. In comparison with the UK, Germany and even the US, France’s inflation rate, at 6.5%, is considerably lower.
Another measure Macron has taken to stabilise the situation is to renationalise EDF, France’s main electricity supplier, at a cost of nearly €10bn. The government has also reduced taxes on electricity and approved a €20bn package of measures to help struggling households cope with rising energy and food prices.
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US
It’s not just Europe dealing with this debilitating problem. The US is contending with the worst energy crisis since the 1970s. Last month, gasoline prices reached $5 a gallon for the first time ever, natural gas hit its highest mark in 14 years and electricity grid operators announced controlled outages are likely.
In response, Senator Joe Manchin is backing a $369bn climate and energy deal. The legislation would include tax credits for buying environmentally friendly vehicles, incentives to accelerate the rollout of wind and solar farms, and support for nuclear power production. However, for this legislation to have any impact on the current crisis, it would have to be rolled out quickly and efficiently – which in the context of the US’s political gridlock is unlikely.
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Japan
Japan is no stranger to an energy crisis. After the catastrophic earthquake and tsunami in 2011 that triggered a meltdown at the Fukushima Daiichi nuclear plant, energy saving became a cornerstone national project for the country. So, unlike in many other countries, Japan already has a blueprint for how to deal with this kind of crisis.
Instead of large, governmental interventions, the focus seems to be on individuals cutting back. The government has long encouraged businesses and households to lower their use of air conditioners and avoid using other power-hungry appliances. The suspension of nuclear power for the last decade has made problems worse – as the crisis continues, it’s clear Japan is going to have to reevaluate the way it generates energy.
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Pakistan
For Pakistan, a country that depends on imported fuel, the global energy crisis has left its economy in a dire place. Power cuts have significantly affected commercial activity, and gas rationing to the textile industry, a vital part of Pakistan’s economy, has resulted in a loss of $1bn in export orders.
To deal with this, Pakistan has announced that it is open to long-term contracts of up to 30 years – most likely with Qatar and the UAE. Long-term contracts however are reportedly 75% more expensive than they were a year ago. Experts estimate that if Pakistan signed a deal now, a single cargo could cost roughly $55m-$61m. Pakistan is also looking inward and, like many other countries, turning to its nuclear plants to alleviate some of the pressure. Whether this will be enough is unclear.
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What else we’ve been reading
I have recommended the Normal Gossip podcast in this newsletter before, but I must recommend it once again. Its latest instalment of real-life tattle - in which a series of pod guests retell, and unwittingly embellish, a story about a breakup - is gloriously silly. Hannah J Davies, deputy editor, newsletters
With the energy crisis set to get even worse in the coming months, Tobi Thomas takes a look at what Brits did in the 1970s, when power outages were a part of everyday life. Nimo
Olivia Newton-John, who died last week at the age of 73, will be best remembered as a hopelessly devoted Sandy from Grease, but what about her other hits? Guardian Australia have had a go at rounding up 10 of the best. Hannah
In this really smart piece, Martha Gill breaks down why the argument that young people are too sensitive for certain types of comedy doesn’t ring true at all. Nimo
You’re twisting my marrows, man: it’s peak courgette season, and Nigel Slater’s got some ideas on how best to eat them. Hannah
Sport
Football | Emotions were running high during the Chelsea v Tottenham game that eventually ended in a 2-2 draw. In a particularly heated moment, after the referee chose not to penalise Rodrigo Bentancur for seemingly fouling Kai Havertz, the managers of the two teams became embroiled in a heated face-off which led to them both receiving yellow cards.
Football | Taiwo Awoniyi’s goal gave Nottingham Forest a victory over West Ham by 1-0, as Premier League football returned to the City Ground after 23 years.
Tennis | Rafael Nadal paid a warm tribute to Serena Williams after the announcement of her imminent retirement. “She is one of the greatest sports [people] of all time,” Nadal said. “I feel lucky to share a tour for a long period of time with her.”
The front pages
The Guardian print edition leads this morning with “Indonesians on UK farms ‘face risk of debt bondage’”. The Metro has “Freeze!” after Keir Starmer unveiled his plan to block energy bill rises. The Mirror says “Starmer’s energy demand – freeze cruel bills now”, while the i says “Sunak and Truss under pressure to cut price cap”. The Times splashes with “Three in four Tory voters back Labour’s energy plan”. Starmer is a basement story on the front of the Telegraph – the top story is “Prepare to be disappointed with A-levels, pupils told” while the Mail warns that “Pupils face toughest university scramble in decades”. The Daily Express continues coverage of the Tory leadership duel: “Radical truss vows to reform crisis Britain”. The number one spot in the Financial Times goes to “US lawmakers call for Trump security threat assessment”. And finally, “Drip drip hooray” – the Sun celebrates the arrival of rain while warning there is a risk of floods.
Today in Focus
One year into Taliban rule: the girls defying bans to go to school
On the anniversary of the fall of Kabul, the Guardian’s senior international correspondent, Emma Graham-Harrison, reports from the secret schools set up in Afghanistan to continue girls’ education
Cartoon of the day | Edith Pritchett
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The Upside
A bit of good news to remind you that the world’s not all bad
Meeting people online often feels like a game of Russian roulette – who is going to turn up to the bar or the coffee shop? Abe Winter has decided to cut the risk significantly by making an app that matches like-minded book fans, who are in close geographic proximity, together. Klerb is not specifically for people looking for romantic connections; rather it’s for those looking to form or be a part of a book club, or simply make new friends who are into the same kinds of reads. Says one potential user: “It would make the hunt for literary friends so much easier for people like me: immigrants who read in other languages, mums looking to talk about something other than babies, or just introverts who want to socialise … but gently.”
Sign up here for a weekly roundup of The Upside, sent to you every Sunday
Bored at work?
And finally, the Guardian’s crosswords to keep you entertained throughout the day – with plenty more on the Guardian’s Puzzles app for iOS and Android. Until tomorrow.
