The British army conducts joint exercises with Kenya in the northern Laikipia region

International News via Reuters:

The UK has agreed to pay 2.9 million pounds ($4 million) in compensation to residents living near a Kenyan wildlife conservancy, following a fire sparked by a British military exercise in 2021, the plaintiffs’ lawyer said on Friday.

The British army conducts joint exercises with Kenya in the northern Laikipia region, where it has a base in the town of Nanyuki. The fire broke out in the nearby Lolldaiga in March 2021.

“We arrived at a settlement and have dispatched payments,” lawyer Kelvin Kubai said in a short message to Reuters. He said compensation was paid to over 7,000 residents for what he described as “smoke nuisance” caused by the fire.

Residents of Lolldaiga area accused a British army training unit of causing the wildfire that destroyed much of a nature reserve, leaving behind ordnance that injured locals.

A British soldier later seemed to claim responsibility for starting the wildfire in a social media post, prompting the British High Commissioner at the time to say she was “appalled” and to pledge an investigation by the Royal Military Police.

The British government on Friday expressed regret over the incident.

“The Lolldaiga fire was extremely regrettable, and the UK recognises the length of time it has taken to resolve this matter and the frustration that this has caused within the affected communities,” a spokesperson at the British High Commission in Nairobi said in a statement.

Reporting by Humphrey Malalo; Writing by George Obulutsa; Editing by Ammu Kannampilly and Clelia Oziel

Wednesday’s figures represent interim data before regular publication resumes in October

International News via Reuters:

British producer output price inflation rose to a two-year high of 1.9% in June, up from 1.3% in May, according to preliminary official data which adds to signs of inflationary pressures facing the British economy.

Britain’s Office for National Statistics suspended the publication of PPI data in March after discovering calculation errors dating back to 2020. Wednesday’s figures represent interim data before regular publication resumes in October.

In July, the ONS said initial analysis showed that producer price inflation in previous years had been higher than originally calculated.

Wednesday’s figures showed further upward revisions, with a previously reported 0.5% producer output price inflation rate for the year to April revised up to 0.7%. However, the ONS said the overall changes were in line with its previous expectations.

Producer input prices in the year to June were down by 1.0% in the year to June after a similar decline in May, which the ONS said was driven by a 24.1% annual drop in the cost of crude oil and natural gas.

Producer prices data is used by economists including those at the Bank of England to judge the strength of underlying inflationary pressures in the economy and their likely impact on consumer prices.

British CPI rose to an 18-month high of 3.8% in July – the highest among major advanced economies – and the Bank of England forecasts it will reach 4% in September.

PPI data is also used for inflation adjustments in British gross domestic product, trade and construction statistics. The ONS said it expected the impact of the changes on published GDP data for 2025 to be “negligible”.

Reporting by David Milliken; Editing by William Schomberg

The price hike by the regulator, a non-ministerial government department, comes after inflation hit its highest in 18 months in July

International News via Reuters:

Millions of British households already grappling with strained budgets will see higher energy bills from October after regulator Ofgem increased its price cap by 2%, even as the government has been seeking to drive down energy costs.

The price hike by the regulator, a non-ministerial government department, comes after inflation hit its highest in 18 months in July and the government faces pressure over the affordability of its net zero plan.

The new cap of 1,755 pounds ($2,370.83) a year for average use of electricity and gas is up around 35 pounds from the previous cap for July-September.

Ofgem said the rise was due to an increase in network and policy costs.

While domestic energy prices have fallen since their peak in 2023, they remain around 50% higher than in the summer of 2021, before Russia’s invasion of Ukraine sent gas prices soaring and sparked an energy crisis in Europe.

The government in June said it would make an extra 2.7 million households eligible this winter for its warm home discount. Introduced in 2011, the discount will now support 6 million vulnerable households with energy bills worth 150 pounds.

However, Ofgem said the warm home discount extension added 1.42 pounds a month on average to all bills.

Consumer groups said energy costs remained unmanageable for many and urged more support for those struggling.

The government said the only way to reduce long-term energy bills was to cut Britain’s reliance on fossil fuels.

“The only answer for Britain is this government’s mission to get us off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control,” Energy Minister Michael Shanks said in a statement.

Ofgem sets the quarterly price cap by using a formula that reflects wholesale energy prices, suppliers’ network costs and environmental and social levies.

Wholesale energy prices fell around 2% over the latest assessment period.

While the price cap could drop in January as wholesale prices drop, bills may in fact be kept higher by further policy costs such as a fee added to everyday bills to pay for the development of the Sizewell C nuclear plant, analysts at Cornwall Insight said.

“These policy-driven costs are part of a broader shift in how we fund the energy transition… yet some of the funding will ultimately need to come from billpayers,” said Craig Lowrey, principal consultant at Cornwall Insight.

($1 = 0.7402 pounds)

Reporting by Susanna Twidale in London, Raechel Thankam Job in Bengaluru; Editing by Tomasz Janowski and Bernadette Baum

Under the deal agreed with regulator Ofwat, almost 100 million pounds of what Thames Water owes could be delayed until 2030

International News via Reuters:

Britain’s Thames Water said on Wednesday the regulator had given it some breathing space to repay 123 million pounds ($166 million) worth of fines, as it continues to try to secure new funding to avoid temporary government nationalisation.

Under the deal agreed with regulator Ofwat, almost 100 million pounds of what Thames Water owes could be delayed until 2030.

The company, Britain’s biggest water company with 16 million customers, has been battling for survival since last year, with the government on standby to put it into its special administration regime (SAR) should it fail to agree a deal.

It is at the centre of a public backlash against the water sector, blamed for polluting Britain’s river and seas, and was fined earlier this year over waste water pollution and for dividend payments it made.

Regulator Ofwat said Thames Water would pay an initial 20% of the fines in the coming weeks with the balance to follow on the earliest of three possible dates, either 30 days after its recapitalisation, or if it enters SAR, 30 days after it exits SAR, with a backstop date of March 31 2030.

“This payment plan continues to hold Thames Water to account for their failures but also recognises the ongoing equity raise and recapitalisation process,” Lynn Parker, senior director of Enforcement at Ofwat said.

Thames Water said in its statement it “continues to work closely with stakeholders to secure a market-led recapitalisation”, which involves its creditors investing new equity and taking a haircut on debt.

The company had repeatedly warned that to secure the investment it needs leniency over fines and pollution targets. It could be on the hook for 1.4 billion pounds worth of fines over the next five years.

The government in July announced plans to overhaul water regulation, which could include giving companies breathing space on fines to help them avoid financial collapse, but it is not clear whether those changes will be made in time to help Thames Water.

($1 = 0.7402 pounds)

Reporting by Sarah Young; Editing by Kate Holton