Industry News Roundup June 2019
Friday 28/06 – In a letter addressed to Business Secretary Greg Clark, the CBI urges the government to use the upcoming Energy White Paper to provide clarity on its support for large-scale nuclear projects and CCUS. A new survey from the Institute of Directors and The Chartered Management Institute reveals that 9/10 business leaders are ready to lead the fight against climate change.
Thursday 27/06 – The Climate Change Act 2008 (2050 Target Amendment) Order 2019 comes into force. Interim Energy and Clean Growth Minister Chris Skidmore publishes a written statement, arguing that the government has taken action to address the climate emergency. BEIS statistics reveal that average business electricity prices, between Q118 and Q119, excluding the Climate Change Levy (CCL) – the tax on energy delivered to businesses – rose by 11%. The increase ranged from 8% for very small businesses to 17% for extra-large.
Wednesday 26/06 – The House of Lords approves the government’s 2050 net zero legislation by 155 to 116. The Welsh government says it is to implement legislation to adopt a 95% carbon reduction target in 2020 and, before the end of 2021, release plans to meet the 2021-25 budget period.
Tuesday 25/06 – The House of Commons votes to approve the Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 by 247 to 209. This amends the scope of the reduced rate of 5% VAT for energy-saving materials, including on-site solar panels and battery storage for businesses. Citizens Advice publishes its business energy supplier customer service league table for Q119, listing the top three suppliers as SSE (4.6/5), Affect Energy (4.5/5) and Breeze Energy (4.45/5).
Monday 24/06 – The House of Commons votes to approve the government’s 2050 net zero legislation. Prime Minister Theresa May makes a statement to the House to update on the UK’s progress in encouraging other EU members to follow suit in setting a net zero target by 2050 at a meeting with the European Council last week.
Friday 21/06 – The Labour Party appoints as its first Shadow Minister for Climate Justice and Green Jobs Danielle Rowley. Citizens Advice research claims that energy customers are facing a potential £172mn in unpaid bills due to the downfall of 11 suppliers since January 2018.
Thursday 20/06 – Clean Air Day takes place, with National Grid ESO announcing that GB is to source more power from zero carbon sources than fossil fuels in 2019 – the first time since the industrial revolution. The government also heralds a new GB record for the number of coal-free generating hours in a year. Six Commons select committees announce plans to hold a citizens’ assembly on combatting climate change and achieving the pathway to net zero carbon emissions.
Wednesday 19/06 – Ofgem publishes an open letter recognising that the industry is experiencing technical constraints with the smart meter rollout. UK Energy Research Centre research finds that achieving net zero by 2050 will lead to “rapid and unprecedented” changes across various sectors and society.
Tuesday 18/06 – Business Secretary Greg Clark announces new powers for the Competition and Markets Authority to tackle businesses that break consumer law and exploit consumer loyalty. The BEIS Committee hears calls from environmentalists for the UK government to be more ambitious with its net zero target.
Monday 17/06 – Mayor of London Sadiq Khan sets out his plans to expand London’s electric vehicle charging network, including the launch of an infrastructure taskforce. UNISON calls on the government to bring the Big Six energy suppliers under public ownership to build the skills to reach net zero by 2050.
Friday 14/06 – Utility Week reports that that CBI called the government “foolish” for not exploiting onshore wind. A review of the viability of repurposing the UK’s gas networks for hydrogen use form the Institute of Engineering Technology warns that risks and uncertainties remain.
Thursday 13/06 – The Energy Data Taskforce issues A Strategy for a Modern Digitalised Energy System, setting out five key recommendations on the UK’s digital energy strategy. Ofgem publishes its draft consumer vulnerability strategy. SSE proposes to close the Fiddler’s Ferry coal-fired power station by 31 March 2020, citing the “increasingly challenged” economics of coal. The closure of this would leave the UK with just five coal-fired power stations. RenewableUK research finds that, if new onshore wind projects were allowed to go ahead in the UK, consumers would eventually save £50 annually on their energy bills.
Wednesday 12/06 – Prime Minister Theresa May announces that the government will implement a target for the UK to achieve net zero emissions by 2050. It is announced that the T-1 Capacity Market auction (to provide GB’s energy security for a year in advance) cleared at £0.77/kW, the lowest clearing price ever achieved in a GB capacity auction.
Tuesday 11/06 – The Scottish government announces that the Climate Change (Scotland) Act 2009 fixed annual target for 2017 of 43.946 MtCO2e has been missed. The Welsh government formally accepts the recommendation of the Committee on Climate Change to reduce emissions by 95% (compared to 1990 levels) by 2050. BP’s 68th Statistical Review of World Energy reports that in 2018 carbon dioxide emissions grew by 2% on 2017, the fastest growth rate for seven years.
Monday 10/06 – Interim Energy and Clean Growth Minister Chris Skidmore announces legislation to introduce the Smart Export Guarantee for microgenerators (such as businesses with on-site solar panels). BEIS announces that 32 companies will receive £33mn to develop projects concerning the UK’s automotive future.
Friday 07/06 – Theresa May resigns as leader of the Conservative and Unionist Party. The Chairs of the Commons Science and Technology Committee and the BEIS Committee Norman Lamb and Rachel Reeves announce they will introduce legislation into the House of Commons to make the net zero 2050 commitment a statutory obligation “for this government and governments to follow”.
Thursday 06/06 – Interim Energy and Clean Growth Minister Chris Skidmore and Committee on Climate Change Chair Lord Deben swap letters on the government’s intention to roll forward a fifth of the saving from the second Carbon Budget for future periods. The BBC reports that Chancellor of the Exchequer Philip Hammond has warned Prime Minister Theresa May that reducing greenhouse gas emissions to net zero by 2050 could cost the UK more than £1trn.
Wednesday 05/06 – The Commons Select Treasury Committee launches an inquiry into the decarbonisation of the UK economy and green finance, in particular how HM Treasury is supporting the government’s climate change commitments. Chief Secretary to the Treasury Elizabeth Truss tells the Commons Select Environmental Affairs Committee that the government could build new nuclear power stations if they provide value for money in comparison to other technologies.
Tuesday 04/06 – Media reports allege that the government is considering carrying forward the surplus achieved from the first and second Carbon Budgets in order to make it easier to achieve future Carbon Budgets. National Grid Electricity System Operator tweets that Great Britain’s record coal-free run has ended after 18 days and six hours. The Renewable Energy Association claims that sustainable bioenergy is essential to meet two-thirds of the projected shortfall of the UK’s fifth Carbon Budget.
Monday 03/06 – A new fund to help small and medium-sized businesses improve their energy efficiency and support community energy projects is launched by the West of England Combined Authority. Utility Week reports that part of the 1.2GW Hornsea One wind farm has begun operations.
Written By Graham Paul
