Energy Bills 'Will Be Lower' Under New Policy

Energy Secretary Ed Davey has said the Government's long-delayed Energy Bill would see consumers pay less for energy in the long-run.

As he introduced the legislation to Parliament, Mr Davey said: "The net effect of Government policy on energy bills is downwards not upwards."

His comments come despite admissions by the Department for Energy and Climate Charge (DECC) last week that the additional investment in green power would add £95 to energy bills by 2020. 

When considered alongside all other energy efficiency policies, however, the Government insists that bills will be £94 less in 2020 if the measures are introduced.

The cost to consumers is "the greatest concern", Mr Davey said, stressing that energy companies will come under pressure to help lower bills.

"We intend to underpin this with reforms to the retail market to simplify tariffs and make sure consumers are able to get the best deal for them," he said.

The Government estimates an extra £110bn is needed over the next ten years to restore the UK's ageing energy infrastructure, much of which is set to be allocated to low-carbon power sources.

By pumping more money into these renewable and "green" power generation, it also hopes to help bolster the country's ability to withstand energy shortfalls.

Any new coal plants built must have carbon capture and storage

The Bill outlines a rise in the amount of investment in green power from £2.35bn a year in 2012 to £7.6bn in 2020.

"In an era of rising global energy prices, by shifting to more home grown sources of power and by becoming more energy efficient, we can cushion our economy and households from the fluctuations of world gas markets," Mr Davey said.

Measures detailed in the Bill included a requirement that any new coal plants built have carbon capture and storage, and plans for long-term contracts that see firms paid a guaranteed price for the electricity they generate from low-carbon sources.

A "capacity mechanism" scheme, which would see companies bid for support to provide power sources or reduce demand during peak demand, was also outlined.

In addition, the Government published proposals to cut demand for energy in the UK, as the DECC estimates a 10% reduction in electricity use could save £4bn by 2030 and reduce carbon emissions significantly.

But Mr Davey's lack of a target to decarbonise the power sector led to criticism from Labour's Caroline Flint said.

The shadow energy secretary demanded "a clear commitment" to decarbonise the energy sector by 2030.

She added: "Not just businesses in the renewables sector but elsewhere are really concerned about the lack of a vision of the Government on this issue.

"I make no bones about it: we support a clear decarbonisation target on the face of the Bill."

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Pensions: Over-50s Have 'No Idea' Of Payout

The over-50s are overestimating how well off they will be when they retire - with many having no idea about their expected income, according to new research.

The Institute for Fiscal Studies (IFS) said those in their 50s "find it impossible even to hazard a guess" as to the amount of income their pensions will pay out in its report.

Savers between the ages of 50 and 64 with a defined contribution (DC) pension would, on average, have to grow their pension pot by 77% - or £20,200 - to reach their expected income, it said.

One in four would have to add £60,000 to their pension pot before retirement to meet their retirement expectations, and a third of those questioned could not even offer a rough estimate of their retirement income.

The research also warned that people are underestimating how long they will live when compared to national projections - a factor crucial to pension planning.

Most people are underestimating how long their retirement will last

Women undershoot their life expectancy by four years - estimating an age of 84 instead of 88 - and men stating 83 instead of 85.

And almost 60% have not given any thought to how many years of retirement they might need to finance.

The National Association of Pension Funds (NAPF), which funded the report, said that given the current climate of very low annuity rates, many are likely to feel short-changed when they retire.

Its chief executive, Joanne Segars, said that although it is fortunate that people are living longer, they need to plan for it.

"It's worrying that so many over-50s are sleepwalking into their old age and are expecting to be better off than they will be," she said.

"The average saver with a defined contribution pension is being over-optimistic."

She stressed that it is essential to "give your workplace pension a regular health check".

"It is not too late for the over-50s to take some control of their retirement plans by adjusting the amount they save, or how long they are prepared to work for," she added.

Annuity rates, which determine what annual income is received from a given pot of money, vary widely, the IFS highlighted.

But it revealed that over the last decade, more than 70% of people purchased their annuity from the company that provided their pension.

The NAPF's head of research, Mel Duffield, added: "These new findings show that those approaching retirement are at real risk of disappointment if they are unrealistic about how long they are going to live and how much their pension pot will pay out when they come to convert it into an annuity.

"We know it is a very tough annuity market out there with gilt yields so low, but this is likely to be exacerbated by savers not realising how far their defined contribution pension will need to stretch."

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Nintendo Wii U: Games Fans Queue For Console

Games fans queued outside a store in London's Oxford Street, eager to be among the first in the UK to own the much-anticipated Wii U.

The first major home console launch since 2006 has already proved popular in the US, despite mixed reviews, and there has been a high demand for pre-orders in the UK, launch hosts HMV said.

The Wii U features the GamePad controller, a tablet-type device that allows users to continue playing after the connected television has been turned off or switched to another channel.

The controller boasts a 6.2in touchscreen display and a three to five-hour battery life.

Among the games expected to be best-sellers are ZombiU, which carries an 18 age restriction, NintendoLand - the Wii Sports for the new console - and New Super Mario Bros U.

The new Wii U GamePad and Console launched at E3 2012 in Los Angeles

The console launched in the US earlier in November, with most concerns surrounding the amount of games that will be available to justify the minimum £250 cost.

Others have mentioned the controller's weak battery performance, a lack of stand-out launch games and frustrating menus and online services.

Nintendo UK marketing director Shelly Pearce told Sky's Jeff Randall Live the Wii U's inbuilt screen "fundamentally changes the way you play video games".

She said all existing games can be played on the new console and it offers "a really deep gaming experience".

Earlier she said: "We can't wait to get the Wii U into the hands of our fans in the UK."

Over the summer at the Electronic Entertainment Expo in Los Angeles, Nintendo illustrated how New Super Mario Bros. U could be played on either a TV or the touchscreen controller.

Critics point to the lack of games available

The latest instalment in the brick-smashing, coin-collecting franchise lets up to four people play simultaneously with traditional controllers, while another can join in with the touchscreen controller to jab enemies and build platforms.

New Super Mario Bros. U and NintendoLand demonstrate what Nintendo calls "asymmetric gameplay" - where a group of people playing together are having very different play experiences on a single game.

And after taking on board criticism of the original Wii's awkward online system, Nintendo has boosted the new console's connected capabilities.

"The system will know when you're playing with your user account - everything that you've played in the past, what your preferences are," said Nintendo of America president Reggie Fils-Aime.

"So it will truly be an experience unique to you. Versus if your wife or your children want different experiences, they really are tailored for each particular consumer."

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Supermarkets Back New Price Promotion Rules

What The Supermarkets Say

Updated: 3:19am UK, Friday 30 November 2012

Eight major supermarkets have signed up to a new code on special offers and price promotions, while Asda is considering whether to take part. Here is what some of the retailers had to say...

Lidl: "At Lidl, we consider customer satisfaction and transparency to be at the forefront of our business, and the OFT's set of principles for fair pricing practices is fully in line with our own pricing policies we have set ourselves.

"For example we do not inflate prices of products before a promotion to artificially imply a saving to the customer.

"For this reason the pricing of products in Lidl stores will not be affected as we will continue to apply these principles to our prices in stores."

Tesco: "We work hard to ensure we offer competitive prices and fair, meaningful promotions to our customers.

"We always try to use simple and clear information, so we welcome the OFT's clarity on good practices and support their wish to see a consistent approach to promotions across the sector."

Waitrose: "Waitrose already has clear principles in place to ensure that our pricing is clear and transparent for our customers - so we are supportive of the OFT's code announced today."

Morrisons: "We are happy to sign up to the Office of Fair Trading's principles because they reflect good promotional practice and we are working towards convergence."

Sainsbury's: "These principles are in line with what we already do at Sainsbury's as we have always been committed to fair and transparent pricing. We will continue to ensure that our pricing and promotions are as clear as possible for our customers."

Co-Operative: "We understand how important it is for shoppers to be able to easily understand what the promotional offer is, so they can spot the best deal, and we are committed to providing clear and accurate labelling for our customers so they can make informed purchasing decisions.

"We have been working closely with the Office of Fair Trading, and are fully supportive of the principles set."

Asda: "We're not sure (the OFT's draft code) best helps customers in these challenging times, so we are taking the time to consider its proposals in detail."

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Autumn Statement: CPS Calls For Action On Debt

George Osborne should introduce cash freezes to avoid missing his debt target, a right-wing think tank has said just days before the Autumn Statement.

The Centre for Policy Studies (CPS) claimed the country's debt will be between £20bn and £30bn higher than Government forecasts in 2015/16.

To avoid this, the organisation urged the Chancellor to save money by introducing freezes on international aid and all benefits except for the state pension.

The halt on public sector pay rises should also be clarified, it added, as "many departments have interpreted the existing freeze very differently".

These measures need to be part of a plan to reduce Government spending to 38% of GDP within four years, the CPS said, adding that a simplification of the UK's "dysfunctional tax system" is also needed.

The calls come ahead of the Autumn Statement on December 5, when Mr Osborne will reveal his latest economic plans to Parliament.

The CPS' head of economic research, Ryan Bourne, said it is clear that assumptions about the potential underlying growth of the economy have been over-optimistic.

"It's increasingly obvious that a further spending review is necessary, and this should go further in looking at the scope of government activity," he said.

And Tim Knox, the director of the CPS, stressed that need for a "great reduction in Government activity".

"The Chancellor has a choice: will he put the long-term economic health of the country above the temptations of short-term political gain?" he said.

"If he tweaks the numbers to meet his rules and if he announces a wide range of policy initiatives which might grab a few headlines, then we will know that this is a statement inspired more by politics than economics."

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Corporation Tax Transparency Call From KPMG

Companies that operate in the UK have been urged to accept greater transparency over their complicated tax structures by a top professional services firm.

KPMG described it as a "sea change" for companies as they learn to disclose more account details.

The firm's head of tax Jane McCormick said: "We believe that corporations are going to have to embrace transparency to explain what taxes they are paying and where they are paying them."

But resistance still remains with some top firms to greater openness, according to a KPMG survey of 57 senior tax executives at leading British and UK subsidiaries of foreign multinationals (MNCs).

Some 40% of the executives still oppose a General Anti-Abuse Rule (GAAR) targeting highly abusive or artificial tax planning.

Ms McCormick added: "By doing so they will also illustrate how their presence contributes to the economies in which they operate whether that be by generating employment (income taxes), sales (indirect taxes), paying business rates or through corporation tax."

The push for transparency comes amid unprecedented public outcry over MNCs' tax avoidance through complex offshore mechanisms.

Ms McCormick added: "The risk is that, without this transparency, the current debate may turn into a witch-hunt, deterring businesses from investing in the UK."

Her comments come just days before the Commons Public Accounts Committee (PAC) is expected to release a report on its questioning of executives from three leading MNCs.

The PAC questioned representatives of Starbucks, Amazon and Google about the amount of corporation tax they pay in Britain.

When grilled by its chair Margaret Hodge, Starbucks' chief financial officer Troy Alstead said his firm had only made a profit once in the 15 years it has been doing business in the UK.

Amazon director of public policy Andrew Cecil was forced to explain why a CD or a book bought in pounds on Amazon.co.uk delivered from a UK warehouse by the Royal Mail is registered in Luxembourg.

Earlier in the year it was reported Amazon - Britain's largest online retailer - generated UK sales over the past three years of between £7.6bn and £10.3bn, but paid virtually no corporation tax.

Google's UK unit paid just £6m to the Treasury in 2011 on revenue of £395m, according to another news report.

Despite the reluctance from some top tax executives KPMG believes that details of tax arrangements will increase in annual company reports as firms seek to clarify their positions to the public, the media and politicians.

"We predict that a tax report will, in time, become as much a feature of the annual report as a Corporate Social Responsibility statement is today," Ms McCormick said.

"With improved transparency on tax, hopefully the 'bigger picture' of how a business-friendly tax system can attract corporates will emerge, demonstrating how the UK's ambition to create the most competitive tax regime in the G20 can play a key role in rebuilding the economy and fuelling the recovery."

She added: "The risk is that without this transparency, the current debate may turn into a 'witch-hunt' deterring businesses from investing in the UK."

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Boris Johnson Agrees Deal With Bollywood

The Mayor of London has announced during a trip to India that two Bollywood films are to be shot in London next year.

Speaking in Mumbai, Boris Johnson said the agreement was part of a bid to bring Bollywood to the British capital.

Earlier in his visit, he called on Indian filmmakers to make London their movie set of choice, offering tax breaks and co-operation on clearing streets, and speaking of "the huge audiences that Indian films have in London".

Producer Sajid Nadiadwala said he would film two movies, including the latest in the hugely successful Housefull series, in London.

The 2010 Indian comedy directed by Sajid Khan and starring Akshay Kumar, Deepika Padukone, Lara Dutta and Jiah Khan, was shot over several months in London and Italy. It won few plaudits from the reviewers but was a huge box office success.

Mr Nadiadwala's other movie to be filmed in London is Kick.

Mr Johnson failed to recognise Bollywood superstar Kajol Devgn

During his journey to Mumbai, Mr Johnson had to remain in economy class on his flight from Hyderabad after being squeezed out of business class by Bollywood megastar Kajol Devgn, who was occupying all the better seats with her entourage.

The Mayor has been keen not to be seen as profligate during his £20,000 trip to India after his predecessor Ken Livingstone splashed out £740,000 on a similar visit, and has been booked on economy or premium economy seats for every flight, but had always been bumped up a class on check-in.

However, this time that was not possible because there was no room.

Just to show there were no hard feelings, the mayor shared a joke with the Bollywood icon as the pair waited for the bus to take them to the airport terminal after landing in Mumbai.

But the flamboyant politician, who unlike his companion is little known by the Indian public, later admitted that he "didn't realise how wonderfully important Kajol was".

He said: "I was too embarrassed and I didn't want to introduce myself but then I met her on the bus on the way to the terminal and she was very nice."

He went on: "The key thing is that Kajol loves working in London and she does a huge number of movies in London. She is just one example of the way India and London can contribute to produce great movies."

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Data Watchdog Gives Christmas Warning

By Pete Norman, Sky News Online

The data protection watchdog has told Sky News that consumers need to be increasingly wary of what companies do with credit card details given over the phone or online.

The warning from the Information Commissioner's Office (ICO) comes as record numbers use internet and telephone shopping services ahead of Christmas.

ICO head of strategic liaison Jonathan Bamford told Sky News: "Although Christmas is the season for giving, be very, very careful when you give your personal details.

"It's really valuable - treat it like your money."

He added: "You should be very wary of who you are dealing with in an online transaction, if you are not confident with the organisation don't proceed with it."

Card details given online can carry data breach risks

Further concerns have been raised by the increasing use of audio recording of customers' telephone calls by companies.

While many firms tape calls for "training and quality purposes", recordings which contain bank or card details are at risk of fraudulent use if proper precautions are not taken.

"Organisations that do use audio recordings need to make sure they don't hold those for any longer than they need to really verify the transaction," Mr Bamford said.

"Data protection law requires them to get rid of information when they don't need it any longer and that applies to audio recordings, along with any other personal details, which may have credit card information."

Banks have long used audio recordings to pursue internal fraud investigations but retail firms are using the audio technology too.

Many firms increasingly record customers' card details

The watchdog can impose penalties of up to £500,000 data protection breaches by organisations.

Earlier this month the Prudential was hit with a £50,000 fine over errors on two customer accounts.

Greater Manchester Police was also fined £120,000 after an unencrypted memory stick was stolen that contained details of more than 1,000 people with links to serious crime investigations.

"If there are real concerns about what happens to our information we have rights of access to find out about that," Mr Bamford told Sky.

"If the worst comes to the worst, the Information Commissioner has powers to make sure companies look after our information properly."

Corporate solicitor Maung Aye, of Mackrell Turner Garrett, told Sky News: "Companies should take their data protection obligations very seriously.

"There are not only substantial financial penalties which the Information Commissioner can impose but a number of other potential ramifications including adverse publicity affecting the company's image, brand and reputation and even criminal liability for directors which could ultimately result in imprisonment."

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Bank Lobby Group Faces Pressure From Members

By Mark Kleinman, City Editor

The banking industry's main lobbying group is facing growing unrest from some of its largest members over its administrative costs and strategy as it attempts to chart a new course under its recently-appointed chief executive.

Senior bankers say they are alarmed by proposals from the British Bankers' Association (BBA) for the biggest high street banks such as Lloyds Banking Group and Royal Bank of Scotland to stomach a sharp increase in the membership fees they pay.

One banker who is critical of the BBA said the major lenders were being asked to fork out millions of pounds in fees in the coming years.

Some executives are also expressing concern that a new three-year strategy being drawn up by Anthony Browne, the BBA chief executive, is not being made the subject of sufficiently wide consultation.

A copy of part of the draft agenda for the BBA's next board meeting, which is scheduled for next week, has been leaked to me.

Focusing on the lobbying group's 2013-2015 strategy, the document outlines two objectives for the BBA during the period: restoring trust and confidence in banking; and establishing the BBA "as the 'go to' association for banking and financial services".

The BBA's choice of words has further irritated some bank executives who have for some time grumbled that Barclays has exerted undue influence over the organisation.

That is because Antony Jenkins, Barclays' new chief executive, has repeatedly described his ambition as being to position the bank as the 'go to' lender for British customers.

Marcus Agius, who stepped down as Barclays' chairman last month, was also chairman of the BBA for two years.

In the document circulating among BBA members this week, the group said it "must represent and be seen to represent and serve the entire cross section of banks operating in the UK, including small banks, foreign banks and challenger banks, and it must effectively ensure that it serves all their interests. It should actively review and monitor its membership offering to ensure that it is continuously offering value for money services that appeal to all sections of membership. It should not be seen as representing just a subset of the banking sector".

Some major lenders, such as Virgin Money, are not members of the BBA, which has been attacked in the past for focusing solely on the interests of the biggest UK banks.

"Trust and confidence in banking in the UK is at record lows in the wake of the Libor and other scandals. Just 5% of the public have a favourable view of bankers, according to research by CTF, and there is widespread hostility to banks among politicians, regulators, the media, consumer groups and some business groups," the BBA agenda says.

"This leads to a conveyor belt of regulation aimed at 'controlling' banking, and it is difficult for banks to either get their concerns heard or addressed. The BBA's own reputation has also been negatively impacted by the Libor scandal, and it has been the subject of public criticism. The high level strategic aim of the BBA in 2013-2015 is to rebuild the reputation of the banking sector and of itself."

The document proceeds to outline measures which the BBA should pursue, including repositioning banking "as a normal sector of the economy, which politicians feel compelled to support rather than bash... The ambition should be to get banking out of political debate".

Senior bankers said this aim appeared unrealistic given that the Government is widely regarded as being likely to remain as a shareholder in Lloyds and RBS until at least the end of this decade.

In relation to the wider economy, the BBA strategy also sets the objectives of: promoting policies "that are not just in the interests of banks, but are of wider public benefit"; establishing alliances with third parties such as consumer and business groups; directing customers to alternative sources of finance when bank finance is inappropriate; promoting financial literacy; and explaining the role of banks in the wider economy.

The BBA also says in relation to its own role that it should "seek to maximise its commercial activities, both to diversify its revenue base, and to provide value for money services to members, including training and conferences".

Last week, Sky News revealed that some major banks were urging the BBA to seek a merger with the Council of Mortgage Lenders or another trade body in order to cushion the loss of millions of pounds in revenues from its role in overseeing the Libor benchmark interest rate.

The BBA, which is relinquishing that role in the wake of the Libor-fixing scandal, declined to comment.

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Yahoo! Court Battle: Firm Told To Pay $2.7bn

Yahoo! has been ordered to pay $2.7bn (£1.7bn) by a Mexican court for breach of contract involving a yellow pages listings service.

The US firm said it believed the claims were without merit and would vigorously pursue all appeals.

The civil case was brought by Worldwide Directories and Ideas Interactivas against Yahoo! and Yahoo! De Mexico.

The two firms claim to have suffered breach of contract, breach of promise and lost profits arising from contracts related to a listings service.

Yahoo! said the ruling by the 49th Civil Court of the Federal District of Mexico City was only a preliminary judgement, and vowed to fight on.

It was not immediately clear when the lawsuit had been filed against Yahoo!.

Worldwide Directories and Ideas Interactivas could not immediately be reached for comment.

Documents from local courts in Mexico are not available for public consultation.

Shares of Yahoo! were down 1.7% at $18.45 in after-hours trading in the wake of the news.

In October, Yahoo! reported that its quarterly profit rocketed above $3bn (£1.9bn), fuelled by the sale of part of its stake in Chinese e-commerce giant Alibaba.

The Californian company's revenue from display advertising was little changed from the same quarter last year.

But Yahoo! said its income from adverts which appeared alongside online search results was up by 11%.

It has been trying to reinvent itself after being overtaken by Google for internet searches.

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