Energy firms told to trade fairly

26 February 2014 Last updated at 06:15 ET

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Rachel Fletcher, Ofgem: Reforms are meant to open up the energy market

The "big six" energy firms are being told to trade with small energy suppliers fairly, or face heavy fines.

Regulator Ofgem says its plan will make it easier for new suppliers to enter the market, and will improve the transparency of the firms' accounts.

The firms, such as E.On and British Gas, will have to publish wholesale power prices two years in advance.

This will make it easier for small companies to buy energy and re-sell it to domestic and industrial customers.

Andrew Wright, chief executive of Ofgem, said that having changed the rules so consumers can find the best deals, the regulator now wanted to break down barriers to competition for new suppliers.

"These reforms give independent suppliers, generators and new entrants to the market, both the visibility of prices, and [the] opportunities to trade, [that] they need to compete with the largest energy suppliers," he said.

"Almost two million customers are with independent suppliers, and we expect these reforms to help these suppliers and any new entrants to grow."

New rules

When selling their power in the wholesale market, the companies will have to publish their prices daily, in two one-hour windows, to give independent suppliers the chance to buy power in advance more economically.

Darren Braham of the small supplier First Utility, said the latest reforms could make a big difference.

"Currently the Big Six generators sell their energy to themselves meaning on the forward wholesale energy market, where smaller suppliers need to buy their energy, there is very little liquidity," he said.

"First Utility's analysis suggests that this increases costs by approximately £30 per household per year.

"If the industry were changed, these reduced costs could be passed on to customers equating to UK wide savings of almost £1bn from energy bills," he added.

Clearer accounting

The regulator is now looking at the way suppliers account for the electricity they generate, trade, and sell to consumers.

Continue reading the main story

These reforms will help ensure competition bears down as effectively as possible on prices"

End Quote Andrew Wright Ofgem

The companies will have to provide more details of their trading operations and have full audits of the accounts they provide to the regulator.

"We also want to ensure that information on revenues, costs and profits of the largest energy suppliers is as clear as possible for consumers," said Mr Wright.

"Now we are taking further steps to ensure that it is published more quickly, and that it gives a robust, useful and accessible picture of company profits.

"Both of these reforms will help ensure competition bears down as effectively as possible on prices," he added.

Scratching the surface

Energy UK, the trade body for the energy suppliers, said its members had been cooperating with the regulator in drawing up its latest plans.

"Ofgem already receives information about costs and trading and we are working together on ways to make our information more easily and widely available," it said.

But the consumers' association Which? said the latest measures only "scratched the surface" of the changes needed to benefit consumers.

"We want a full competition inquiry so that hard-pressed consumers can be confident that the market works well for them, as well as shareholders, and that the price they pay is fair," said Which? executive director Richard Lloyd.

The new rules on competition, which come into effect on 31 March 2014, follow criticism from MPs last year that Ofgem had failed consumers by not doing enough to ensure that the finances of the dominant big six suppliers were transparent.

MPs on the Energy and Climate Change Committee (ECCC) said in July that "working out exactly how their profits are made requires forensic accountants".

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Stunning whale graveyard explained

25 February 2014 Last updated at 20:32 ET By Jonathan Amos Science correspondent, BBC News

It is one of the most astonishing fossil discoveries of recent years - a graveyard of whales found beside the Pan-American Highway in Chile.

And now scientists think they can explain how so many of the animals came to be preserved in one location more than five million years ago.

It was the result of not one but four separate mass strandings, they report in a Royal Society journal.

The evidence strongly suggests the whales all ingested toxic algae.

The dead and dying mammals were then washed into an estuary and on to flat sands where they became buried over time.

Continue reading the main story

We managed to sample all the superstars of the fossil marine-mammal world in South America in the Late Miocene"

End Quote Nicholas Pyenson Smithsonian Institution

It was well known that this area in Chile's Atacama Desert preserved whale fossils.

Their bones could be seen sticking out of rock faces, and the spot acquired the name Cerro Ballena ("whale hill") as a result.

But it was only when a cutting was made to widen the Pan-American Highway that US and Chilean researchers got an opportunity to fully study the fossil beds.

They were given just two weeks to complete their field work before the heavy plant returned to complete construction of the new road.

The team set about recording as much detail as possible, including making 3D digital models of the skeletal remains in situ and then removing bones for further study in the lab.

Identified in the beds were over 40 individual rorquals - the type of large cetacean that includes the modern blue, fin and minke whales.

Among them were other important marine predators and grazers.

"We found extinct creatures such as walrus whales - dolphins that evolved a walrus-like face. And then there were these bizarre aquatic sloths," recalls Nicholas Pyenson, a palaeontologist at the Smithsonian's National Museum of Natural History.

"To me, it's amazing that in 240m of road-cut, we managed to sample all the superstars of the fossil marine-mammal world in South America in the Late Miocene. Just an incredibly dense accumulation of species," he told BBC News.

The team immediately noticed that the skeletons were nearly all complete, and that their death poses had clear commonalities. Many had come to rest facing in the same direction and upside down, for example.

This all pointed to the creatures succumbing to the same, sudden catastrophe; only, the different fossils levels indicated it was not one event but four separate episodes spread over a period of several thousand years.

The best explanation is that these animals were all poisoned by the toxins that can be generated in some algal blooms.

Such blooms are one of the prevalent causes for repeated mass strandings seen in today's marine animals.

If large quantities of contaminated prey are consumed, or the algae are simply inhaled - death can be rapid.

"All the creatures we found - whether whales, seals or billfishes - fed high up in marine food webs and that would have made them very susceptible to harmful algal blooms," said Dr Pyenson.

The researchers believe the then configuration of the coastline at Cerro Ballena in the late Miocene Epoch worked to funnel carcases into a restricted area where they were lifted on to sand flats just above high tide, perhaps by storm waves.

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The finds were a media sensation in 2011

This would have put the bodies beyond marine scavengers. And, being a desert region, there would have been very few land creatures about to steal bones either.

A lot of the fossils at Cerro Ballena are perfect but for a few nicks inflicted by foraging crabs.

The researchers are not in a position to say for sure that harmful algal blooms were responsible for the mass strandings. There were no distinct algal cell fragments in the sediments; such a presence could have amounted to a "smoking gun". What the team did find, however, were multiple grains encrusted in iron oxides that could hint at past algal activity.

"There are tiny spheres about 20 microns across - that's exactly the right size to be dinoflagellate cysts," said Dr Pyenson.

"They're found in algal-like mats all around the site. We can't say whether those were the killer algae, but they do not falsify the argument for harmful algal blooms being the cause in the way that the sedimentology falsifies tsunami being a potential cause."

Cerro Ballena is now regarded as one of the densest fossil sites in the world - certainly for whales and other extinct marine mammals. The scientists calculate there could be hundreds of specimens in the area still waiting to be unearthed and investigated.

The University of Chile in Santiago is currently working to establish a research station to carry this into effect.

To coincide with the publication of a scholarly paper in Proceedings B of the Royal Society, the Smithsonian has put much of its digital data, including 3D scans and maps, online at cerroballena.si.edu.

Jonathan.Amos-INTERNET@bbc.co.uk and follow me on Twitter: @BBCAmos

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Co-op to report worst results in history

26 February 2014 Last updated at 02:27 ET

The Co-op Group's losses for 2013 are expected to be greater than £2bn, by far the worst in its history, when they are announced on 26 March.

I also understand that as the first stage in trying to revitalise the group as a whole, its chief executive, Euan Sutherland, will tell members of the Co-op's regional boards on Saturday that its substantial farming operation, which includes 15 farms, will be sold.

He will also reveal that Co-op is actively considering the sale of its 750 pharmacies, which generated revenues of £764m in 2012. "They are likely to be sold, but a formal decision hasn't yet been made," said a source.

Co-op Group's farms are mostly arable, producing cereal for bakers. They supply only a tiny proportion of the food in its stores.

As for the pharmacies, they have come under financial pressure, as the NHS tries to save money on prescriptions, and are not thought to be well integrated with other Co-op activities.

• Been farming since 1896
• Owns 17,200 hectares
• 200 employees
• 70% of it is cereals
• Only 2% goes directly to shops

Rescue

According to well-placed sources, the huge £2bn-plus losses to be revealed at Co-op Group stem mainly from its bank - which was rescued at the end of 2013 - together with a reduction in the value of the stores and goodwill it acquired with the Somerfield takeover of 2009 (what's known as a write-down).

For the first half of 2013, Co-op Group generated a pre-tax loss of £559m, following a loss in the previous year of £648m.

Since then, Co-op Group has been forced to recognise a collapse to nothing in the value of its investment in Co-op Bank, as part of a rescue which saw hedge funds and other investors emerging with majority ownership of the bank.

Job cuts

Over four years, Co-op Group is planning to cut running costs by £500m, of which it has already identified £100m of savings.

To achieve these cuts, I am told there will be thousands of job losses, probably between 4,000 and 5,000 by 2017, especially in head office and in support positions.

But Mr Sutherland and his board colleagues have yet to calculate precisely how many jobs will go, and he is not expected to give details for some weeks yet.

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Chief executive Euan Sutherland: "Over the last five or six years the business lost its way"

Co-op Group is by far the largest enterprise in the UK run on co-operative or mutual lines. It has millions of members, of whom tens of thousands are activists, who participate in elections for local boards.

Early leaks of the scale of the reconstruction of the group are fomenting tension between the activists and professional management led by Mr Sutherland.

"We worry that the board is exaggerating the scale of the crisis, including losses, to turn the Co-op into much more of a conventional business, and move it away from its democratic and ethical roots," said one.

Battle

Mr Sutherland won't unveil the full remaking of the Co-op until around the time of its annual meeting on 17 May.

He is carrying out a survey of how the public sees the Co-op, called "Have your Say", which has already seen more than 80,000 people express a view on how the Co-op should change.

Among the questions put to them, they are being asked whether the Co-op Group should continue paying a dividend to members, rather than simply cut prices, and whether it should continue to make financial contributions to the Co-operative Party, which in turn supports the Labour Party.

Co-op activists are concerned that the survey can be filled in by anyone, not just Co-op members, and they fear that the wording of the questions is designed to illicit a negative response on continued political donations, thus ending all ties to the Labour Party.

"There is going to be quite a battle over this," said one.

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BBC business reporter Steph McGovern looks back at the history of the Co-operative Group and hears the views of some customers

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Chelsea warn fans after 'stabbings'

26 February 2014 Last updated at 06:11 ET

Chelsea FC have said they aware of incidents involving their fans amid reports that two supporters have been stabbed in Istanbul.

The Press Association had earlier reported two supporters had been attacked on Tuesday evening but neither needed hospital treatment.

The west London club tweeted a warning its fans not to use the Turkish city's Metro as it was "not safe".

Chelsea play Istanbul side Galatasaray in the Champions League on Wednesday.

Chelsea had tweeted: "The club is aware of 2 incidents involving fans in Istanbul last night & is working with relevant agencies to best ensure safety of all"

The British Embassy in Ankara confirmed it was aware of the reports and was discussing them with the club and Turkish authorities.

The Foreign Office confirmed it was investigating claims of trouble around Taksim Square, in the heart of the city's commercial district, but that it had "no confirmation of an incident".

English fans have been victims of violence in Istanbul before, with Leeds fans Christopher Loftus and Kevin Speight stabbed to death before a UEFA Cup tie in 2000.

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Ukraine elite police 'disbanded'

26 February 2014 Last updated at 06:38 ET

Ukraine's acting interior minister has said the elite Berkut police unit, blamed for the deaths of protesters, has been disbanded.

It is unclear what will happen to Berkut officers, but Arsen Avakov said more details would be given in a briefing on Wednesday.

The unit had 4,000-5,000 members stationed across Ukraine.

Meanwhile, a new cabinet is expected to be presented to protesters in Kiev on Wednesday afternoon.

Continue reading the main story

Analysis

Ukraine's new leaders are tasked with not just forming a new government, but also stabilizing the country, finding the fugitive former President Viktor Yanukovych, and staving off a looking financial catastrophe. They must also transform the basic way the country is governed and its economy is run.

In order to unlock billions of dollars in emergency loans from the International Monetary Fund, interim officials must agree to reforms in key areas such as the gas and agriculture industries. They must also overhaul the country's judiciary, where, in the words of one expert, Adrian Karatnycky of the Atlantic Council, court decisions were decided by "a phone call from the presidential administration."

And there are many more areas. All them carry heavy political and economic risks, and could spark a backlash from interested or affected groups - for instance, the Berkut themselves. Or Ukrainians forced to pay higher gas prices. Or the industry tycoons, who will see their revenues diminish. But not doing anything will also unleash a reaction - especially from the still-present protestors on the Maidan. The government can't afford not to act.

Also on Wednesday Mr Turchynov announced that he had assumed the duties of the head of the armed forces.

Ousted President Viktor Yanukovych fled Kiev at the weekend and his whereabouts are still unknown.

Interim authorities have issued a warrant for his arrest, and on Tuesday parliament voted in favour of trying him at the International Criminal Court (ICC) in The Hague.

The fugitive president is accused of being behind the deaths of more than 100 protesters at the hands of riot police.

Any new government will face a daunting set of challenges, with many areas of government in Ukraine needing urgent reform, the BBC's David Stern in Kiev reports.

The much-despised Berkut are just one part of the security and law enforcement agencies, which have long been accused by human rights groups and local citizens of human rights abuses.

International divisions

Also on Wednesday Russian Foreign Minister Sergei Lavrov called on other countries to condemn "nationalist and neo-fascist" sentiment in western Ukraine.

Mr Lavrov called on the OSCE to condemn "calls to ban the Russian language, to turn the Russian-speaking population into 'non-citizens' and to restrict freedom of expression".

Russia has portrayed the ousting of Mr Yanukovych as a violent seizure of power by the opposition, and has expressed concern about the role of far-right parties in the protests against him.

The US and EU countries have broadly backed the takeover of power by the opposition.

Many Russian-speaking residents in the south and east of Ukraine have protested against the actions of the interim authorities.

Tensions are rising in Crimea, where two big rival protests are being staged.

Crimean Tatars and local activists supporting the demonstrators on Kiev have gathered in front of the autonomous republic's parliament in Simferopol.

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Zhalilo Yaroslav from the National Institute for Strategic Studies explains the economic challenges facing Ukraine to Tim Willcox

They are facing a pro-Russian demonstration, with only a police cordon separating the two rallies.

The Crimean Tatars say they will resist any attempts at secession by pro-Russian political forces.

The two rival rallies have been called ahead of a planned session of Crimea's parliament, where the issue of Crimea's status is expected to be raised.

Crimea - where ethnic Russians are in a majority - was transferred from Russia to Ukraine in 1954.

The change of government in Kiev has raised questions over the future of Russia's naval bases in the Crimean port city of Sevastopol, the lease for which was extended until 2042 by Mr Yanukovych.

Most experts believe that the new leadership will not push for the withdrawal of the Russian fleet, as this could further threaten Ukraine's internal stability as well as the country's fragile relations with Russia, the BBC's Ilya Abishev reports.

Earlier, Ukraine's Mr Turchynov expressed concern about what he called the serious threat of separatism following the ousting of Mr Yanukovych.

Addressing parliament, he said he would meet law enforcement agencies to discuss the risk of separatism in regions with large ethnic Russian populations. Separatism was a "serious threat", he said.

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Protester Sergey Prohor returns to the scene of the violence

Fugtive president

Mr Yanukovych fled Kiev at the weekend and his whereabouts are still unknown.

Interim authorities have issued a warrant for his arrest, and on Tuesday parliament voted in favour of trying him at the International Criminal Court (ICC) in The Hague.

The fugitive president is accused of being behind the deaths of more than 100 protesters at the hands of riot police.

Unrest in Ukraine began in November when Mr Yanukovych rejected a landmark association and trade deal with the EU in favour of closer ties with Russia.

Ukraine is close to bankruptcy and with promised loans from Russia looking increasingly unlikely, interim leaders are looking to the West to bail the country out.

EU foreign affairs chief Catherine Ashton held talks in Kiev on Tuesday to discuss financial and political support for Ukraine's new leaders.

She urged the provisional authorities to include Yanukovych supporters in any new government, adding: "Everyone I've spoken to here recognises the importance of this country sticking together. But we also know that there are big financial and economic challenges in the days, weeks and months ahead."

Continue reading the main story

Yanukovych's flight from Kiev

• 21 Feb: leaves Kiev for Kharkiv on helicopter; stays overnight in state residence
• 22 Feb: flies by helicopter to Donetsk airport; tries to leave on private jet but stopped by border guards; leaves by car for Crimea
• 23 Feb: arrives in Balaklava, Crimea, and stays briefly in a private spa before making aborted attempt to reach Belbek airport
• Dismisses most of his security detail; leaves Balaklava in a three-car convoy with some guards and presidential administration head Andriy Kliuyev
• Source: Acting Interior Minister Arsen Avakov

Are you in Ukraine? What is your reaction to the recent events? Email us at haveyoursay@bbc.co.uk adding 'Ukraine' in the subject heading and including your contact details.

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Clashes on Ukraine at Munich summit

1 February 2014 Last updated at 07:12 ET

Ukraine's future has sparked angry exchanges at a summit in Munich.

European Council President Herman Van Rompuy said the "future of Ukraine belongs with the EU" while US Secretary of State John Kerry said the US backed Ukraine's "fight for democracy".

Russian Foreign Minister Sergei Lavrov accused those defending violent protests of double standards.

Ukraine has been in turmoil since November, when it scrapped an EU accord in favour of a Russian bailout.

'Time on our side'

The security conference is an annual event held to discuss military and political affairs.

Mr Van Rompuy's opening speech referred to the EU's offer of close association with Ukraine.

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Sergei Lavrov: "What does incitement of violent street protests have to do with the promotion of democracy?"

"The offer is still there and we know time is on our side. The future of Ukraine belongs with the European Union," he said.

Mr Kerry launched a broad attack on "a disturbing trend in too many parts of Central and Eastern Europe and the Balkans".

He said: "The aspirations of citizens are once again being trampled beneath corrupt, oligarchic interests - interests that use money to stifle political opposition and dissent, to buy politicians and media outlets, and to weaken judicial independence."

Mr Kerry added: "Nowhere is the fight for a democratic, European future more important today than in Ukraine. The United States and EU stand with the people of Ukraine in that fight."

He said the "vast majority of Ukrainians want to live freely in a safe and prosperous country - they are fighting for the right to associate with partners who will help them realise their aspirations".

In an apparent swipe at Moscow, he added that "their futures do not have to lie with one country alone, and certainly not coerced".

Mr Lavrov said that a "choice is being imposed [on Ukraine] and Russia is not going to be engaged in this".

He asked: "What does incitement of violent street protests have to do with the promotion of democracy? Why do we not hear condemnation of those who seize government buildings and attack police and use racist, anti-Semitic and Nazi slogans?"

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Herman Van Rompuy: "The future of Ukraine belongs with the European Union"

Mr Lavrov said: "Why are many prominent European politicians actually encouraging such actions, although back home they are quick to severely punish any violations of the law?"

Interfax also quoted Mr Lavrov as saying: "When John Kerry... says that Ukraine should choose who it is with - with the whole world or with one country, Kerry - with his experience, good sense - is the last person I would expect such propaganda from."

On Saturday Mr Kerry is scheduled to meet Ukraine opposition leaders said to include Arseniy Yatsenyuk, boxer-turned-politician Vitaly Klitschko, legislator Petro Poroshenko and pop star Ruslana Lyzhychko.

The White House has confirmed it is discussing possible sanctions against Ukraine with the US Congress.

It was unclear whether Mr Kerry will meet Ukrainian Foreign Minister Leonid Kozhara, who is at the summit.

Before arriving in Munich, Mr Kerry said that concessions from President Viktor Yanukovych had "not yet reached an adequate level of reform".

Mr Yatsenyuk, who heads the Batkivshchyna party, recently refused an offer from President Yanukovych to become PM, one of the concessions.

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The BBC's Mariko Oi: "Shocking images of one anti-government protester"

President Yanukovych, who is currently on sick leave, has also tried to ease the crisis by repealing anti-protest laws, signing an amnesty for protesters and accepting the resignation of his cabinet.

However, opposition leaders are calling for his resignation and early elections.

One key issue for Mr Kerry and the opposition leaders will be the issue of Ukraine protester Dmytro Bulatov.

He went missing for eight days and said he had been kidnapped and tortured by captors who spoke with Russian accents.

He is now in hospital in Kiev under guard from both police and anti-government demonstrators.

Both White House spokesman Jay Carney and EU foreign affairs chief Catherine Ashton said they were "appalled" by the apparent signs of torture.

US ambassador to Ukraine Geoffrey Pyatt went to the hospital on Saturday to try to meet Mr Bulatov.

Ukraine's interior ministry says it wants to interrogate the activist on suspicion of organising mass unrest, and to examine his account of torture.

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Shooting in Bangkok ahead of poll

1 February 2014 Last updated at 06:32 ET

Several people have been injured by gunfire in the Thai capital, Bangkok, amid clashes involving anti-government protesters ahead of Sunday's elections.

The violence erupted during a stand-off between supporters and opponents of Prime Minister Yingluck Shinawatra.

The shots were fired as demonstrators blockaded a building where ballot papers are being stored, in an attempt to prevent their distribution.

Protesters want the government replaced by an unelected "people's council".

The opposition has vowed to boycott Sunday's poll, which is likely to be won by Ms Yingluck.

Troops deployed

The incident took place in Bangkok's Laksi district, a stronghold of the prime minister's Pheu Thai party.

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Thailand's crisis explained in 60 seconds

Sustained bursts of gunfire ricocheted off buildings after a tense stand-off between both sides, the BBC's Jonathan Head, in Bangkok, reports.

A number of people could be seen lying injured on the road, as exchanges of gunfire continued, forcing reporters and passers-by to flee for cover, our correspondent says.

Continue reading the main story

• Sep 2006: Army ousts Thaksin Shinawatra
• Dec 2007: Pro-Thaksin party wins election
• Aug 2008: Thaksin flees Thailand
• Dec 2008: Huge anti-Thaksin protests; court bans ruling party; Abhisit Vejjajiva comes to power
• Mar-May 2010: Huge pro-Thaksin protests; dozens killed in army crackdown
• Jul 2011: Yingluck Shinawatra, sister of Thaksin, elected PM
• Nov 2013: Anti-government protests
• Dec 2013: Ms Yingluck calls election
• Jan 2014: Ms Yingluck declares state of emergency

It was not immediately clear whether those wounded were government supporters or opponents.

The protest movement has vowed to disrupt the election as much as possible, by preventing ballot papers from reaching polling stations.

The army earlier said it would increase the number of troops deployed in Bangkok for the polls on Sunday. Some 10,000 police will also patrol the streets.

The protests began in November, after the lower house backed a controversial amnesty bill that critics said would allow Ms Yingluck's brother, Thaksin Shinawatra, to return.

Ms Yingluck called early elections to quell the unrest, but demonstrators have vowed to block the poll from going ahead.

Correspondents say one election commissioner has predicted that 10% of polling stations will not be able to open at all on Sunday.

Because of disruption to candidate registration, the elections will also not deliver enough MPs for a quorum in parliament, meaning that by-elections will be needed before a government can be approved, extending the instability.

Last week, there were chaotic scenes as protesters tried to stop advance voters from casting their ballots.

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Labour plans to cut unions' power

1 February 2014 Last updated at 06:21 ET

Trade unions, MPs and MEPs are to have their influence over Labour leadership elections reduced under plans announced by Ed Miliband.

It is part of the Labour leader's proposed shake-up of the party's historic relationship with the trade unions.

Mr Miliband said future leadership contests would be decided by a one member, one vote election.

He described the changes as some of the biggest in the party's history.

However, Conservative Party Chairman Grant Shapps said the changes would make it "even easier" for the "union barons" to pick the Labour leader in future.

'Cash shortage'

The Labour leader embarked on reforming the union link after a selection row in Falkirk last year when allegations of vote-rigging surfaced involving the Unite union.

No wrong-doing has been found to have taken place.

In an interview with the Guardian newspaper, Mr Miliband said: "These are the biggest changes to who can become involved in the Labour Party since probably its formation.

"They go much further than people expected, but they are designed to open us up and complete unfinished business of the past 20 years.

"These reforms are about letting people back into our politics, and getting them back into politics."

Currently - under Labour's electoral college system - MPs and MEPs get a third of the votes to select a new leader, trade unions get a third and party members another third.

That system is to be abolished with every party member and those union members who donate to the party having an equal say.

Under Labour's plans, from the end of 2014 new members of unions affiliated to the party would have to opt in and pay a £3 fee to Labour before they got a vote.

This process would be phased in over five years for existing union members.

MPs would retain the sole right to nominate leadership candidates.

The threshold those candidates would need is also to be raised - possibly to 20% of Labour's MPs.

'Massive change'

Continue reading the main story

A new method of electing Labour's leader - the electoral college, which gives unions, party members and MPs/MEPs a third of the votes each, abolished in favour of one member, one vote

MPs have sole nomination rights for leadership candidates and those candidates will need a higher level of support than at present - possibly 20% of MPs

All union members will have to 'double opt-in' if they want to take part in a leadership contest. They have to say that they are content to give money to Labour AND that they want to become 'an affiliated supporter'

Only full party members - not trade-union 'affiliated supporters' - will choose parliamentary and council candidates

Changes to London mayoral selection - Labour's candidate to be selected in the same way as the party leader

New leadership rules will be put in place this year - but changes to the party's funding will be phased in over five years

At present, trade union members pay a levy to the party - decided by the union - unless they opt out.

Describing the changes as "massive", Mr Miliband acknowledged they could mean donations to the party falling.

"I make no apology for making sure the party is financially secure, so these reforms are being phased over a five-year timescale."

In another mooted change, registered supporters - those who have registered their support but are not full party members - would be entitled to vote in leadership and mayoral elections "for a small fee".

There are currently around 20,000 such supporters and the party hopes to boost that number - partly as a counterweight to the votes of trade unionists, BBC political correspondent Iain Watson said.

Mr Miliband sought to reassure his parliamentary party, telling the Guardian: "They will continue to play an important role with their right to nominate, so it will be MPs that will decide who goes forward to the election in the country on the principle of one member one vote."

The BBC also understands that unions will retain 50% of the votes at the party's conference.

Veteran Labour MP Alan Johnson said he had been arguing for the changes since his time as Communication Workers Union general secretary.

"This is absolutely the right way to go," he told BBC News.

"We have a genuine one member, one vote system to elect our leader."

But the party's Glasgow South West MP Ian Davidson said: "There's been nobody in my constituency coming along and saying to me at this time of economic crisis, what we need is a reorganisation of the Labour Party."

'Same old Labour'

Conservative party chairman Mr Shapps, however, suggested union members could outnumber ordinary members by 10 to one under the proposed changes.

He said: "Ed Miliband promised to loosen the trade union barons' grip on the Labour Party. But he has been too weak to deliver.

"Until now, the union barons could buy Labour's policies and pick Labour's leader. After these changes, it will be even easier for the union barons to buy Labour's policies and even easier to pick the leader."

He added: "Ed Miliband has shown he's too weak to stand up to the union barons who own him, too weak to stand up for hardworking people and too weak to offer a long-term economic plan to secure Britain's future."

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High tides and wind bring flood risk

1 February 2014 Last updated at 07:01 ET

High tides and gale force winds could bring more flooding to parts of south-west England and the Midlands, the Environment Agency has warned.

It has five severe flood warnings - meaning a danger to life - three on the Severn estuary near Gloucester and two on the north Cornwall coast.

Lesser warnings affect many parts of Britain including western Wales and the flood-hit Somerset Levels.

Cobra, the government's emergency committee, has met on the issue.

Discussions on Friday evening were chaired by Environment Secretary Owen Paterson who is urging residents to "listen to all the advice being issued".

"Environment Agency staff are working day and night, alongside the emergency services and other local specialist agencies, to get communities ready for the bad weather," he said.

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Matthew Richards reports from Aberystwyth

A band of heavy rain swept across the south west, west Wales and southern England on Friday evening bringing up to 30mm (1.2in) to already-saturated ground.

Kate Marks, the Environment Agency's flood risk manager, said: "A low pressure system combining with high tides brings a risk of coastal flooding to many parts of England.

"The risk is highest for south-west England, although many coastal areas will be affected and the public should stay away from coastlines and tidal areas and not drive through flood water.

"At the same time the risk of river flooding continues for the southern counties as with the ground already saturated, rivers are very responsive to rainfall. Groundwater levels also remain high in southern counties."

The Environment Agency said gales and waves could combine to cause possible overtopping of flood defences and sea walls, property flooding and travel disruption over the weekend.

BBC weather presenter Tomasz Schafernaker said gales were heading towards Britain, with the risk of further flooding.

He said: "The gales will be picking up across western areas through the course of the morning, probably peaking later on in the day across northern parts of the country."

He said winds would gust at up to 70mph (112km/h) in west Wales and south-west England.

There are also about 160 flood warnings and 290 flood alerts in England and Wales with parts of south-east and north-west England and the Yorkshire and Hull coast all said to be at risk.

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At the scene

Matthew Richards BBC News, Abersytwyth

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People in Aberystwyth are not taking any chances this time around after twice being hit by floods and storms in January.

Six hundred students have been moved from their seafront accommodation to alternative digs elsewhere on campus. The seafront has been quiet this morning with only the occasional jogger or dog walker braving the promenade.

By high tide at 08:41 GMT the waves had begun to crash over the sea wall but no damage has been done so far. High winds may cause problems later on and further extremely high tides are awaited over the weekend.

Some residents have told me they think the precautions were a little over zealous but the authorities were not taking any chances.

Communities along the Welsh coast, already hit by a storm in early January, are braced for possible further flooding.

Leisure centres in Cardigan and Aberystwyth are open as emergency evacuation support centres if required. The youth centre in Upper Borth is also open.

Adam Wood, from North Somerset Council, said teams had been dispatched along the coast.

Speaking from Clevedon, where a seafront road has been closed as a precaution, he said: "We have got crews in three of our coastal towns.

"We have got a team set up at Weston-super-Mare, with all the main defences there, obviously here we have the road closure, and at Portishead we have a team down there keeping people safe."

The BBC's Katy Watson in Clevedon said there had been a sense relief that the big waves had so far failed to materialise - but the council was taking no risks.

Several riverside homes have been flooded at Minsterworth in Gloucestershire where the tidal surge has peaked and the water was receding.

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BBC Weather presenter Tomasz Schafernaker has the weekend forecast

In Europe, areas of Italy and France are on flood alert as heavy rain brings chaos. Hundreds of people have been evacuated from homes in Pisa, Italy, while widespread flooding is expected on the French Atlantic coast.

Meanwhile, Prime Minister David Cameron has expressed "enormous sympathy" for the people who have been living on the Somerset Levels where 25 sq miles (65 sq km) have been flooded for several weeks.

Writing in the Western Daily Press, Mr Cameron said: "I know that a great deal of work has been done to try and alleviate the situation but it is not acceptable for people to have to live like this almost four weeks later - and I am not ruling out any option to get this problem sorted out.

"The government is doing everything we can to help people recover as quickly as possible where they have suffered damage to their homes and businesses."

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Holding back the water

Dredging, flood barriers, natural flood management and sustainable drainage are recognised methods of preventing or alleviating flooding. BBC News looks at how these methods work and the scientific principles behind them.

The government and the Environment Agency have been criticised by MPs and local councils in Somerset, where the agency said it was now running pumps 24 hours a day to drain the water.

Personnel from all three branches of the armed forces are currently on stand-by to help villages cut off by the floods.

But the Environment Agency has said dredging of rivers in Somerset would not begin until flood water had drained and river banks were safe.

The Met Office has issued its own warnings of heavy rain and high winds of up to 60mph for many southern and western areas.

"Winds will increase on Saturday, with gusts widely to 50 to 60 mph, and locally to around 70 mph in exposed parts of the west," it said.

"Additionally, large waves could lead to overtopping along some coastlines."

The latest warnings come at the end of a month which has already become the wettest January on record for parts of southern England.

Up to and including 28 January, the south east and central southern England had a record 175.2mm (6.9in) of rainfall in January - beating the previous record of 158.2mm for the same parts of England set in 1988.

Are you in the South West or coastal areas? Have you been affected by flooding? You can share your experiences and pictures with us by emailing haveyoursay@bbc.co.uk using the subject heading High Tide.

Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here.

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No 10 'ousting non-Tories from posts'

1 February 2014 Last updated at 07:05 ET

Downing Street is ousting non-Conservative supporters from key public body posts, according to the outgoing chair of schools inspectorate Ofsted.

Baroness Sally Morgan told the BBC she was the victim of a "determined effort from Number 10" to appoint more Tories.

The Labour peer has not had her term of office - due to end this month - renewed, but will stay on until a successor takes over in the autumn.

A senior Number 10 source described her claim as "baseless".

Asked about her comments, Conservative party chairman Grant Shapps said: "I don't agree. We have to make sure that we have the right people in place to deliver government policy."

'Right people'

But speaking on BBC Radio 4's Today programme, Baroness Morgan said: "There is an absolutely determined effort from Number 10 that Conservative supporters will be appointed to public bodies."

There had been a "strong and co-operative relationship" between herself, ministers and officials, Baroness Morgan said, denying there had been any kind of "falling out".

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She said her removal was part of a pattern which had seen a series of non-Conservative supporters on bodies like the Arts Council and the Charity Commission replaced with loyal Tories.

She said the impetus behind the appointments appeared to come from No 10.

She told Radio 4's Today programme: "I really do think it's just I am the latest of a fairly long list of people now who are non-Conservative supporters who are not being re-appointed."

Baroness Morgan, a former close aide to Tony Blair, said there was "absolutely a pattern", adding: "I think it's extremely worrying."

She was appointed by the coalition in 2010 as head of the education inspectorate for England.

'Transparently made'

Baroness Morgan said she believed the move was not specifically against Labour, but against those who did not support the Conservatives, and added: "I think there's a lot of concern about it.

"Often they are people who have been working really well with their organisations and, indeed, with their host departments, so I do think this is coming from Number 10.

"I don't think it is coming from individual departments."

Baroness Morgan told Radio 4 the issue needs to be looked at by the cabinet secretary, the most senior civil servant, and the cabinet office.

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It is wholly wrong that the Conservatives now are purging anybody who's not a Conservative"

End Quote Lord Falconer

"One of the really important things about public appointments is that they are made on the basis of merit and they are seen to be transparently made," she said. "I think there's something going on in the centre that's mitigating against that."

In a statement, Ofsted said Baroness Morgan's term of office "has been extended until the autumn of 2014 by the secretary of state while the process is put in place to find a successor".

Education Secretary Michael Gove has not commented on allegations she was dismissed but praised her contribution.

Mr Gove said: "She has brought great knowledge and insight, leading the board strongly through a period of significant change, both managing the smooth transition when there were changes in chief inspector, and leading the reforms to the inspectorate and its work.

"I hope that she continues to play an active role in helping to shape the education landscape to improve standards for all children and young people."

'Retrograde'

The education secretary has not commented on allegations in the Independent he was dismissing her. He earlier denied claims by Sir Michael Wilshaw, the chief inspector of schools in England, that the Department for Education had briefed against Ofsted.

The Independent also reported that the deputy prime minister has complained to the cabinet secretary about Conservatives making "party political" appointments.

Former Lord Chancellor Lord Falconer said the Conservatives had taken "a really retrograde step".

He told the BBC: "It is wholly wrong that the Conservatives now are purging anybody who's not a Conservative in public office.

"The consequence of that will be to greatly reduce the quality of people who take non-political public service jobs."

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