We should have seen it coming. Seemingly from nowhere, tens of small energy companies set up in the UK. All the talk is of racing to the bottom, of consumers switching between them, just like that, to secure the cheapest deal.
Firms are even launched that specialise in enabling users to move across. They will find the best price, leave them to get on with it, easy. Those companies that do nothing but switch also prosper.
The buzz and the numbers are strong, everyone needs gas and electricity. The City can’t get enough of this new bonanza. Words like “renewable”, “efficient”, “sustainable” are chucked around.
Investment committees that must check whether tests for ESG, the initials that have become a mantra, are complied with, and pronounce themselves satisfied. The energy fledglings are as eco-friendly as they can be, so that’s the E for environment; they do all the right things by their workers where diversity and inclusion and looking out for their poorer customers are concerned, so that’s the S for social; and they’re properly managed, so that’s the G for governance sorted.
The City piles in, there are shares to be had, profits to be made. If you fit the right criteria, who knows, there might even be a job in it for you. It was telling how many non-executive directorships at start-up UK energy firms were going begging in the Opportunities sections of head-hunter websites.
They did well, wooing hundreds of thousands of consumers from the established players. Suddenly, the rug has been pulled from under. They’ve come crashing down. They built their business on what was known in the trade as the “maturity mismatch”, the difference between the spot price for energy in the market and the long-term prices agreed by their customers.
Things were fine while the spot price was below the end user price. But when the former rose, the gap or mismatch between the two narrowed and the likelihood of profitability vanished.
Firms have gone under, leaving investors out of pocket and consumers without an energy supplier (not without energy, the regulator Ofgem is guaranteeing they will be able to transfer to an alternative home).
Not for the first time, City caution was thrown to the wind
It’s a mess, one with an eerily familiar feel. Not for the first time, City caution was thrown to the wind. These were companies without reserves of cash. If the going got tough they had nothing to fall back upon. They tended not to do, either, what any careful person might do and insure themselves against the market turning – they didn’t hedge against the spot price climbing.
Yet, the City rushed in. As it has done on every single occasion a bubble has been created – never mind that bubbles have an unfortunate habit of bursting. In recent times, they did it with the banks in 2007 and before them, dotcom stocks. History is littered with further examples.
The pattern is the same: there’s the promise of spectacular gains; it’s all built on the back of a feelgood factor, in this case greater consumer choice (as it was in the run-up to the banking crisis with the rise of ready mortgage lenders), there is minimum regulation and supervision (again, the official watchdog has been found wanting, as it was in 2007). Crucially, no one is pressing the pause button and asking what if? Everything is based on this model but what if it changes, what then?
In 2007, the banks – notably in the UK, Northern Rock but there were others – could lend crazy on crazy multiples, often without proof of earnings because they were able to borrow. They were tapping the wholesale credit market. When that tightened, as Americans started defaulting on their sub-prime loans and rates went up, as illiquidity took hold, the banks had nowhere to turn.
Then, once the banks were rescued, or allowed to fail as in the case of Lehman in the US, and minds turned to not creating the circumstances in which there could be a recurrence, the solution was to require the survivors to maintain higher reserves. For banks, read energy. It’s a rerun of 2007 and the result will be the same: a smaller number of operators obliged to show they’re in strong financial fettle.
The paradox to this is the intervention of Al Gore. The former US vice president, so-nearly president and environmentalist has jumped in, via his Generation Investment Management (or GIM) fund to pump up to $600 million into the UK’s Octopus Energy. The green start-up, founded only in 2016, receives $300m now and another $300m next June if certain, undisclosed conditions are met.
At first sight, the move looks contrarian. But Octopus is the one from the pack to have made the leap. It serves more than 3.1 million households, is ranked among the biggest five energy suppliers and a valuation of $4.6 billion makes it worth more than Centrica, owner of British Gas.
Octopus was created, not to do quite nicely thank you, but to determinedly break the stranglehold of the Big Six group of British energy providers. Formed out of a fund management business, as opposed to pure energy, Octopus is heavily technologically driven. It had high ambition and smart kit to match.
Success is down to a software platform that it’s already licensing to admiring large beasts, including Origin, E.ON, npower and Hanwa. In all, 17 million accounts are managed globally, using Octopus’s Kraken technology that claims to manage power usage more efficiently. It’s this that Gore is buying into.
His swoop was in the planning for months, long before some of Octopus’s fellow youngsters found themselves being squeezed. Evidence that Octopus is different came with its agreement to take 580,000 customers of Avro Energy that has gone bust.
In case, too, anyone should suppose it’s a mad environment play by Gore, they ought to realise that GIM is run by David Blood, who use to head Goldman Sachs Asset Management. I know David and he is clever, no slouch, nor is he a gambler with other people’s money. GIM will have done its homework, he will have been sure of that.
Far from appearing perverse, the timing could be neat. Gore is climbing aboard just as Octopus can benefit from the downfalls of others. Not bizarre at all then, but a smart, thought-through strategy. If only the same could be said for fellow energy sector members and their gung-ho backers.
Fight card
Preliminaries:
Nouredine Samir (UAE) v Sheroz Kholmirzav (UZB); Lucas Porst (SWE) v Ellis Barboza (GBR); Mouhmad Amine Alharar (MAR) v Mohammed Mardi (UAE); Ibrahim Bilal (UAE) v Spyro Besiri (GRE); Aslamjan Ortikov (UZB) v Joshua Ridgwell (GBR)
Main card:
Carlos Prates (BRA) v Dmitry Valent (BLR); Bobirjon Tagiev (UZB) v Valentin Thibaut (FRA); Arthur Meyer (FRA) v Hicham Moujtahid (BEL); Ines Es Salehy (BEL) v Myriame Djedidi (FRA); Craig Coakley (IRE) v Deniz Demirkapu (TUR); Artem Avanesov (ARM) v Badreddine Attif (MAR); Abdulvosid Buranov (RUS) v Akram Hamidi (FRA)
Title card:
Intercontinental Lightweight: Ilyass Habibali (UAE) v Angel Marquez (ESP)
Intercontinental Middleweight: Amine El Moatassime (UAE) v Francesco Iadanza (ITA)
Asian Featherweight: Zakaria El Jamari (UAE) v Phillip Delarmino (PHI)
Most%20polluted%20cities%20in%20the%20Middle%20East
%3Cp%3E1.%20Baghdad%2C%20Iraq%3Cbr%3E2.%20Manama%2C%20Bahrain%3Cbr%3E3.%20Dhahran%2C%20Saudi%20Arabia%3Cbr%3E4.%20Kuwait%20City%2C%20Kuwait%3Cbr%3E5.%20Ras%20Al%20Khaimah%2C%20UAE%3Cbr%3E6.%20Ash%20Shihaniyah%2C%20Qatar%3Cbr%3E7.%20Abu%20Dhabi%2C%20UAE%3Cbr%3E8.%20Cairo%2C%20Egypt%3Cbr%3E9.%20Riyadh%2C%20Saudi%20Arabia%3Cbr%3E10.%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3E%3Cem%3ESource%3A%202022%20World%20Air%20Quality%20Report%3C%2Fem%3E%3C%2Fp%3E%0A
MOST%20POLLUTED%20COUNTRIES%20IN%20THE%20WORLD
%3Cp%3E1.%20Chad%3Cbr%3E2.%20Iraq%3Cbr%3E3.%20Pakistan%3Cbr%3E4.%20Bahrain%3Cbr%3E5.%20Bangladesh%3Cbr%3E6.%20Burkina%20Faso%3Cbr%3E7.%20Kuwait%3Cbr%3E8.%20India%3Cbr%3E9.%20Egypt%3Cbr%3E10.%20Tajikistan%3Cbr%3E%3Cbr%3E%3Cem%3ESource%3A%202022%20World%20Air%20Quality%20Report%3C%2Fem%3E%3C%2Fp%3E%0A
PSL FINAL
Multan Sultans v Peshawar Zalmi
8pm, Thursday
Zayed Cricket Stadium, Abu Dhabi
What is Bitcoin?
Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.
The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers.
RACE RESULTS
1. Valtteri Bottas (FIN/Mercedes) 1hr 21min 48.527sec
2. Sebastian Vettel (GER/Ferrari) at 0.658sec
3. Daniel Ricciardo (AUS/Red Bull) 6.012
4. Lewis Hamilton (GBR/Mercedes) 7.430
5. Kimi Räikkönen (FIN/Ferrari) 20.370
6. Romain Grosjean (FRA/Haas) 1:13.160
7. Sergio Pérez (MEX/Force India) 1 lap
8. Esteban Ocon (FRA/Force India) 1 lap
9. Felipe Massa (BRA/Williams) 1 lap
10. Lance Stroll (CAN/Williams) 1 lap
11. Jolyon Palmer (GBR/Renault) 1 lap
12. Stoffel Vandoorne (BEL/McLaren) 1 lap
13. Nico Hülkenberg (GER/Renault) 1 lap
14. Pascal Wehrlein (GER/Sauber) 1 lap
15. Marcus Ericsson (SWE/Sauber) 2 laps
16. Daniil Kvyat (RUS/Toro Rosso) 3 laps
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
If you go...
Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).
When Umm Kulthum performed in Abu Dhabi
Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.
Killing of Qassem Suleimani
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance
SQUADS
UAE
Mohammed Naveed (captain), Mohamed Usman (vice-captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan
Nepal
Paras Khadka (captain), Gyanendra Malla, Dipendra Singh Airee, Pradeep Airee, Binod Bhandari, Avinash Bohara, Sundeep Jora, Sompal Kami, Karan KC, Rohit Paudel, Sandeep Lamichhane, Lalit Rajbanshi, Basant Regmi, Pawan Sarraf, Bhim Sharki, Aarif Sheikh
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
The specs: 2018 Mitsubishi Eclipse Cross
Price, base / as tested: Dh101,140 / Dh113,800
Engine: Turbocharged 1.5-litre four-cylinder
Power: 148hp @ 5,500rpm
Torque: 250Nm @ 2,000rpm
Transmission: Eight-speed CVT
Fuel consumption, combined: 7.0L / 100km
Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
