Industry News Roundup May 2016
Tuesday 31/05—Prominent Brexit campaigners argue that a vote to leave the EU would allow the UK to scrap VAT on energy bills. PwC finds that consumers with smart energy technology are satisfied with it, but those without the technology are unwilling to pay for it. The Competition and Markets Authority says it will examine any harm from the merger of energy trading services Intercontinental Exchange and Trayport.
Monday 30/05— A group of independent suppliers express concern about plans to remove the requirement on price comparison websites to show consumers all of the offers available in the market. The National Farmers Union says it is deeply disappointed over government proposals to cut feed-in tariff subsidies for the Anaerobic Digestion sector.
Friday 20/05 - Consultants Cornwall Energy find in a new report the cost of policies to support renewable electricity and ensure energy security will increase sharply over the next couple of years. Horizon Nuclear Power announces that it has appointed a new, specially-created, joint venture to help deliver the planned new nuclear power station at the company’s Wylfa Newydd site.
Thursday 19/05 - The Office of National Statistics reveals that the low-carbon and renewable energy economy generated £46.2bn in turnover during 2014. The energy and climate change select committee announces that it will hold a one-off evidence session to investigate the implications for energy and climate change policy of the EU referendum. ICIS forecasts Britain will install 15GW of gas-fired capacity in the next five years.
Wednesday 18/05 - The Queen’s Speech confirms the government’s plans to introduce legislation to implement the Competition and Markets Authority’s proposed energy market remedies. The Federation of Small Businesses (FSB) backs the government proposals, saying they will improve competition in markets. SSE says it is to focus on “significantly” reducing the rate at which it is losing customers, confirming in its yearly results that through to the end of March it had lost 370,000 customer accounts. The Scottish government confirms Scottish economy secretary Keith Brown is to take on responsibility for the country’s energy brief, replacing Fergus Ewing.
Tuesday 17/05 - The Residential Landlords Association urges the government to delay the introduction of new energy efficiency targets for the private rented sector. Trade group RenewableUK welcomes data revealing that for the first time wind generated more electricity than coal over the course of an entire month. Energy minister Andrea Leadsom in a speech for the Vote Leave campaign warns that a vote to stay in the EU could put the energy security of the UK at risk.
Monday 16/05 - Prime minister David Cameron warns that a vote to leave the EU in the upcoming referendum would see the UK give up billions of pounds in infrastructure investment. Developer NuGen warns that first power from its proposed new nuclear plant in Cumbria has been delayed until the end of 2025. The UK’s newest gas field, the Laggan-Tormore field, is officially opened by energy and climate change secretary Amber Rudd.
Friday 13/05 - North Yorkshire County Council releases a report backing plans for Third Energy to drill a test well prior to hydraulic fracking. Dudgeon wind farm secures £1.3bn project financing from Masdar, Statoil and Statkraft.
Thursday 12/05 - First Utility says that customers of the Big Six energy suppliers are paying £4bn more than necessary because they remain on standard variable tariffs. The Energy Technologies Institute identifies sites off the coast of the UK where there are no technical hurdles to permanently and safely storing large quantities of CO2. Media reports indicate that the cost of the planned Hinkley Point C new nuclear power project could reach almost £21bn––£3bn more than was originally planned. The FT reports that the planned 448MW Neart na Gaoithe windfarm has had its contract for difference cancelled.
Wednesday 11/05 - The Energy Bill completes its remaining parliamentary stages and proceeds to Royal Assent. The government opens a consultation seeking views on proposed amendments to the contracts for difference standard terms and conditions, including incorporating storage. New figures from Energy UK reveal that the number of customers switching electricity suppliers has surpassed 400,000 for the third month in a row. Ofgem announces a mid-period review of the RIIO price controls for National Grid Gas Transmission and Electricity Transmission.
Tuesday 10/05 - The Grantham Research Institute on Climate Change suggests that the Committee on Climate Change’s proposed Fifth Carbon Budget would not harm UK business competitiveness and could help to deliver long-term economic growth. The UK falls to 13th in Ernst & Young’s quarterly index of attractiveness to renewables investors. uSwitch warns that vulnerable customers are facing an increasingly limited choice when looking to switch to the best deals in the energy market. Solar represents a “huge opportunity” for Scotland and deployment is set to increase over the coming decade, the SNP’s energy and climate change spokesman says.
Monday 09/05 - System operator National Grid issues a Notice of Inadequate System Margin due to a system margin shortfall of 1,500MW, causing wholesale price rises. National Energy Action warns of a shift away from coordinated action to tackle fuel poverty in the UK. Supplier SSE announces that it has awarded a £22mn contract for the construction works at its Bhlaraidh windfarm.
Friday 06/05–Plans to bring forward the first delivery year of its capacity market to 2017-18 are confirmed. The government says it will not accept the Lords’ latest efforts to amend the Energy Bill to broaden Renewables Obligation grace period criteria for onshore wind. Former energy minister Charles Hendry is announced as the head of an independent review of tidal lagoons.
Thursday 05/05–A letter signed by 20 Conservative MPs calls on prime minister David Cameron to accept the Committee on Climate Change’s recommendations on the Fifth Carbon Budget. Carbon Tracker Initiative says the upstream assets of the world’s seven largest private oil firms will be worth $100bn more if they align their investment plans with the objective of limiting global temperature increases to 2˚c. Centrica confirms it will seek to raise around £750mn through a share sale to fund acquisitions and continue to lower its net debt.
Wednesday 04/05–A new report by the Energy and Utilities Alliance argues that gas storage is capable of making “a significant contribution” towards improving energy security. The energy and climate change select committee welcomes government plans to give Ofgem more powers in the code modification process. SmartestEnergy claims independent renewables generators now meet 7.6% of demand in the UK. Shell’s earnings fall by nearly 60% in the first quarter of the year. Ofgem CEO Dermot Nolan calls for the energy industry to work to increase customer trust.
Tuesday 03/05–Environmental group WWF says that in April Scottish windfarms produced enough power to meet the demands of more than three quarters of homes in Scotland. The CMA refers Intercontinental Exchange’s acquisition of Trayport for an in-depth investigation. Eurostat says the EU’s CO2 emissions increased slightly during 2015, but UK emissions were down by 2.9%. The Energy and Utilities Alliance argues that gas storage can make a critical contribution to improving energy security.
Monday 02/05–The Environment Agency confirms that around 3,000 businesses eligible for the mandatory Energy Savings Opportunity Scheme have missed the extended deadline for compliance. Media reports suggest that some of the major energy suppliers are considering legal action over the findings of the Competition and Markets Authority’s (CMA) energy market investigation. The International Energy Agency cautions national governments they must “look more than one or two years down the road” when making energy policy choices.
Written By Graham Paul
