by Hardwick Legal | Jun 28, 2019 | Purpose Built (LexisNexis)
This week’s edition of Energy highlights includes the publication of the Office of Gas and Electricity Markets’ (Ofgem) statutory consultation on a proposal to modify the special conditions of the electricity transmission licence held by National Grid Electricity System Operator Ltd (NGESO) in order to increase certainty around the Balancing Services Use of System (BSUoS) charges, along with their decisions to access half-hourly electricity data and reject proposals submitted by NEGSO to establish a network code on emergency and restoration (NCER). Also this week, NGESO has published the full final results report for T-1 Auction—Delivery Year 2019–20, and the Offshore Wind Industry Council (OWIC) launched the Offshore Wind Growth Partnership (OWGP), a ten-year, £100m programme that aims to develop a globally competitive UK supply chain as well as supporting 650 companies in delivering 60% UK content in offshore wind farm. Also this week, BEIS has published the latest quarterly Energy Trends updates, together with associated special feature articles.
Electricity and gas market regulation and licensing
Over half of the UK’s electricity generation is now low carbon, statistics show
The Department for Business, Energy & Industrial Strategy (BEIS) has published their quarterly bulletin on energy trends, containing statistics on all major aspects of the UK energy sector. The report shows that low carbon methods accounts for over half of all electricity generation, having increased from 48.3% in the first quarter of 2018 to 51.8% in 2019. Renewable energy increased their share of electricity generation by 5.3%, from 30.5% in 2018 to 35.8% in 2019. BEIS have also published three special feature articles to compliment the bulletin. See: LNB News 27/06/2019 42.
Ofgem rejects five proposals submitted by the electricity system operator
Office of Gas and Electricity Markets (Ofgem) has published its decision on five proposals submitted for approval by the electricity system operator (ESO) under Article 4(2) of Commission Regulation (EU) 2017/2196 establishing a network code on emergency and restoration (NCER). In its decision, Ofgem rejected the proposals in their current form and concluded that they had to be amended to provide more clarity and transparency for grid users and restoration and defence service providers. Now, the ESO must make the necessary amendments to the proposals in line with the Ofgem’s decision and resubmit amended proposals within two months. See: LNB News 21/06/2019 56.
Ofgem publishes consultation to increase certainty around the Balancing Services Use of System (BSUoS) charges
Ofgem has released a statutory consultation on a proposal to modify the special conditions of the electricity transmission licence held by National Grid Electricity System Operator Ltd (NGESO). According to Ofgem, they ‘are proposing this modification in order to increase certainty around the Balancing Services Use of System charges market participants face as a result of incentive payments incurred by NGESO’. See: LNB News 26/06/2019 65.
Ofgem decides on access to half-hourly electricity data for settlement purposes
Ofgem has announced its decision on access to half-hourly electricity data for settlement purposes. The decision follows consultation which ran between July and September 2019. Currently, domestic consumers’ half-hourly consumption data can only be accessed if they have opted-in while data from microbusinesses can only be accessed if they have not opted-out. See: LNB News 26/06/2019 19.
Networks and network connections
Ofgem to assign Commission Regulation obligations to Transmission System Operators
Ofgem has published its decision to assign Transmission System Operator (TSO) obligations under the Commission Regulation (EU) 2017/2196, to establish a network code on electricity emergency and restoration. Ofgem is assigning these obligations under Article 2(7) of the emergency and restoration code (NCER), which requires these obligations to be distributed where a Member State has more than one TSO or has a TSO which does not have a function relevant to one or more obligations under Regulation (EU) 2017/2196. It is Ofgem’s view that not all UK TSOs have all the required functions. See: LNB News 21/06/2019 43.
Renewable energy
Offshore wind initiative to develop globally competitive UK supply chain
The Offshore Wind Industry Council (OWIC) has launched the Offshore Wind Growth Partnership (OWGP), a ten-year, £100m programme that aims to develop a globally competitive UK supply chain as well as supporting 650 companies in delivering 60% UK content in offshore wind farms. The OWIC has launched the OWGP as a key part of the offshore wind sector deal which aims for at least 30 gigawatts of offshore wind to be installed by 2030. The OWGP will be delivered by the Offshore Renewable Energy Catapult that will support supply chain companies to increase growth and competitiveness. The OWGP will initiate an in-depth assessment of the offshore wind foundations sector as its first task. See: LNB News 24/06/2019 65.
Draft legislation for Finance Bill 2020
The government will publish draft clauses on 11 July 2019 for the Finance Bill to be introduced following the next Budget in the Autumn. Explanatory notes, tax information and impact notes, responses to consultations and other supporting documents will accompany this draft legislation. See: LNB News 25/06/2019 89.
Britain will rely on clean energy over fossil fuels in 2019
For the first time since the Industrial Revolution, National Grid has predicted more of Britain’s electricity production will come from zero carbon energy sources than fossil fuels. National Grid analysed annual power generation data from the last ten years, which it says shows Britain’s reliance on cleaner energy sources will exceed that on fossil fuels in 2019. This is due to innovative approaches to energy, such as connecting Britain’s electricity grid to its neighbours via under water cables called interconnectors, which will cut carbon emissions and accelerate Britain’s response to climate change. Tim Pugh, a solicitor specialising in planning environment and infrastructure, comments on the announcement. See: LNB News 21/06/2019 72.
Capacity Market, balancing services and energy system flexibility
National Grid ESO publishes round results for T-1 Auction—Delivery Year 2019–20
National Grid ESO has published the full final results report for T-1 Auction—Delivery Year 2019–20. This includes details of the bidding round price spread and the potential clearing capacity at the bidding round price floor for that bidding round. It also details, except in relation to the first bidding round, the excess capacity as at the start of the bidding round. See: LNB News 25/06/2019 77.
Most suppliers meet 2018 targets for smart meter rollout, Ofgem letter confirms
Ofgem has published a letter outlining progress made on smart meter rollout. The letter confirms that most large suppliers met their 2018 targets for the number of smart meters in their portfolio. However, SSE failed to meet its target and in exchange it agreed to pay £700,000 to the consumer redress fund administered by the energy savings trust, with no further enforcement action taken by Ofgem. Now Ofgem is monitoring rollout plans for 2019. See: LNB News 20/06/2019 11.
Nuclear
Office for Nuclear Regulation publishes annual report and accounts for 2018–19
The Office for Nuclear Regulation (ONR) has published its annual report and accounts for 2018 to 2019. It says ONR delivered 53 out of 60 corporate milestones and 91 out of 104 regulatory plan milestones. Four regulatory milestones were deferred to 2019/20 and nine were removed due to changes in operational priorities. ONR also says its Strategic Plan and regulatory assumptions for 2016 to 2020 remain valid and will continue to inform its activities. See: LNB News 20/06/2019 100.
Air emissions, efficiency and climate change
The Court of Justice of the European Union rules on the allocation of GHG emission allowances
ExxonMobil Production Deutschland GmbH v Bundesrepublik Deutschland, C-682/17
European Union—Environment. Article 3(u) of Directive (EC) 2003/87, as amended, should be interpreted as meaning that an installation, such as that at issue in the main proceedings, which produced, within the framework of its activity of ‘combustion of fuels in installations with a total rated thermal input exceeding 20 [megawatts (MW)]’, referred to in Annex I to that directive, electricity intended essentially to be used for its own needs, had be regarded as an ‘electricity generator’, within the meaning of that provision. The Court of Justice of the European Union so held in a preliminary ruling in proceedings concerning the application by the applicant company for the allocation of greenhouse gas emission allowances free of charge to a natural gas processing installation. The digest is available here: [2019] All ER (D) 131 (Jun).
New EU strategic agenda aims to strengthen role of EU in ‘unsettled’ world
The European Council has published its strategic agenda for 2019–24. The agenda provides and overall framework and direction for the EU’s future. It sets out four main priorities—’protecting citizens and freedoms’, ‘developing a strong and vibrant economic base’, ‘building a climate-neutral, green, fair and social Europe’, and ‘promoting European interests and values on the global stage’. Julie Vaughan, senior associate at Herbert Smith Freehills, comments on the agenda, saying it makes it clear that ‘EU policies should be consistent with the Paris Agreement’. See: LNB News 21/06/2019 76.
Source: LexisNexis Purpose Built
Energy weekly highlights—28 June 2019
![New revision of TCC Guide published]()
by Hardwick Legal | Jun 27, 2019 | Purpose Built (LexisNexis)
A new revision of the Technology and Construction Court (TCC) guide has been published (revision four of the second edition). The TCC has stated that the only change is the addition of existing guidance on the management of public procurement claims,
as Appendix H.
The guidance (the ‘TCC Guidance Note on Procedures for Public Procurement Cases’) is not new. It was launched in July 2017 and parties have been expected to comply with it since.
At the time of its launch, the TCC announced that there were no plans to republish the TCC guide to include the guidance, but that a copy of it would be added to the White Book. A copy was also added to the version of the TCC guide in Civil Court Practice
(the ‘Green Book’) and on LexisPSL.
For more information on the guidance, see News Analysis: TCC Guidance Note on Procedures for Public Procurement Cases launched.
The TCC have also confirmed that a new edition of the TCC Guide, referred to in the TCC’s recently-published annual report (see: LNB News 12/06/2019 100), is still in progress.
The TCC Guide is available here.
First published on LexisPSL on 19 June 2019.
Source: LexisNexis Purpose Built
New revision of TCC Guide published
by Hardwick Legal | Jun 21, 2019 | Purpose Built (LexisNexis)
Electricity and gas market regulation and licensing
Decision on licensing applications regulations and guidance document
Ofgem has published its final decision regarding it approach to licensing suppliers and have now made the Electricity (Applications for Licences, Modifications of an Area and Extensions and Restrictions of Licences) Regulations 2019, SI 2019/1023 and Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2019, SI 2019/1024 and published a final application guidance document, which sets out, among other information, the application processing time periods. The decision forms part of Ofgem’s new approach to licensing suppliers, to raise standards for supplier financial resilience and customer service. SI 2019/1023 and SI 2019/1024 both come into effect on 5 July 2019. See: LNB News 19/06/2019 76.
Electricity sector Regulation and Directive published in the Official Journal
Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on risk-preparedness in the electricity sector and repealing Directive 2005/89/EC, Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators, Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity, and Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU have been published in the Official Journal. See: LNB News 14/06/2019 55.
Views sought on draft Consumer Vulnerability Strategy 2025
Ofgem has launched a consultation that seeks views from key stakeholders and consumers on its draft Consumer Vulnerability Strategy 2025, which aims to safeguard vulnerable consumers by outlining five areas where it believes that the energy industry should focus on to keep consumers abreast of the changes currently underway due to digitalisation, decarbonisation and decentralisation shifting how consumers interact with energy suppliers. Ofgem also aims to improve disconnection protections to support prepayment customers that self-disconnect. The consultation closes on 8 August 2019. See: LNB News 13/06/2019 69.
Ofgem seeks comment on TCR update
Ofgem is consulting on an update to several discrete matters relating to the November 2018 minded-to decision on TCR. The consultation provides further information on four aspects of the project and gives the opportunity for comment ahead of the regulator’s final decision on the matter. The consultation closes 12 July 2019. See: LNB News 19/06/2019 66.
New REC aims to improve energy switching process
Ofgem has opened a consultation on the introduction of a new REC, which intends to bring together code requirements relating to retail energy activities and the underlying arrangements for allowing customers to switch energy suppliers in an effort to make the process faster and more reliable. A transitional REC was designated on 1 February 2019. For comment addressing the REC Manager role and future governance, the deadline for responses is 29 July 2019. For all other responses, Ofgem wants comment by 29 July 2019. See: LNB News 18/06/2019 28.
Shell Energy Retail pays £390,000 after overcharging on default tariffs
Ofgem has confirmed Shell Energy Retail Limited (Shell) will refund and compensate around 12,000 customer accounts and pay £200,000 to Ofgem’s consumer release fund—paying £390,000 in total. This is due to Shell overcharging on its default tariffs when the price cap was introduced on 1 January 2019. Ofgem will not take formal enforcement action against Shell as it has taken appropriate steps to address the failings. See: LNB News 14/06/2019 67.
Ofgem supports taskforce recommendations and releases metadata
Ofgem has published a response to EDT’s recommendations. Ofgem welcomed the EDT’s report, and supported its recommendation that a Data Catalogue be created to describe all data sets in Great Britain’s energy system. See: LNB News 14/06/2019 11.
Networks and network connections
European Energy Regulators assess status of DSO and TSO unbundling
The Council of European Energy Regulators has released a report on the subject of the implementation of Transmission System Operators (TSO) and Distribution System Operators (DSO) unbundling provisions. The report aims to assess the status of DSO and TSO unbundling, highlight new developments since 2015 and provide an overview of the main changes in unbundling-related provisions introduced in the EU 2019 ‘Clean Energy for All Europeans’ package. See: LNB News 14/06/2019 38.
Renewable energy
Revenue and Customs Breif 4/2019: Domestic VAT reverse charge for businesses trading in renewable energy certificates
The government has laid regulations introducing a domestic reverse charge for supplies of gas and electricity certificates in the UK with effect from 14 June 2019. This is to prevent the threat of missing trader intra-community fraud when these certificates are traded. HMRC says it will take a ‘light touch’ approach to penalties in the first six months of operation of the reverse charge, where businesses have made reasonable efforts to comply with the new rules. See: LNB News 13/06/2019 91.
£1.4m in funding granted for Welsh electric vehicle battery development projects
Under the UK government’s £274m Faraday Battery Challenge, £1.4m has been allocated to Welsh companies, Deregallera Ltd and Tri-Wall Europe Limited, in order to utilise the development of the latest battery technologies for electric vehicles to create more highly-skilled, well-paid jobs throughout Wales, benefit the economy and place Wales on the ‘forefront of green innovation’. The Faraday Battery Challenge is critical to the UK’s plans to achieve a net zero emissions economy. See: LNB News 13/06/2019 20.
State aid: Commission approves Italian public support for electricity produced from renewable sources
On 14 June 2019, the European Commission approved under EU State aid rules a scheme to support electricity production from renewable sources in Italy (Case SA.53347). The aid is intended to support electricity production from renewable sources such as onshore wind, solar photovoltaic, hydroelectric and sewage gases and will help Italy reach its renewable energy targets. The scheme, which has an estimated total budget of €5.4bn, will be applicable until 2021, includes a clawback mechanism so that if the market price moves above the average production cost for each renewable technology, the selected installations would no longer receive a premium and would instead have to give back to the Italian authorities the additional revenue. This ensures State support is limited to the minimum necessary. The Commission approved the measure as it will contribute to EU environmental objectives, as it promotes the generation of electricity from renewable sources, without unduly distorting competition. See: LNB News 14/06/2019 43.
Capacity Market, balancing services and energy system flexibility
Results of the T-1 capacity auction for delivery in 2019/20 published
The National Grid Electricity System Operator Limited has published its Capacity Auction (T-1) for delivery in 2019/20 provisional auction report, which details the results of the T-1 Capacity Auction that concluded on 12 June 2019. The results of the auction are provisional for the period of eight working days after the Capacity Market Auction was completed. In that length of time, the Secretary of State may potentially annul the auction on the grounds of regulation 27 of the Electricity Capacity Regulations 2014, SI 2014/2043. See: LNB News 13/06/2019 83.
Capacity Market (Amendment) (No 3) Rules 2019 published
The Department for Business, Energy & Industrial Strategy has published the Capacity Market (Amendment) (No 3) Rules 2019. The rules come into force on the day after the day on which they are made. The rules amend Rule 1.2 in Chapter 1 (General Provisions) and Rule 2.1 in Chapter 2 (Auction Guidelines and De-rating). See: LNB News 14/06/2019 18.
Ofgem consults on costs of smart meter rollout and capacity market
Ofgem has announced consultation on its approach to the third cap period which will run between 1 October 2019 and 31 March 2020. Specifically, Ofgem is seeking views on the proposed the allowance for the net costs of the smart meter rollout and for the costs of the capacity market (CM) in the third cap period. The consultation period ends on 16 July 2019. See: LNB News 19/06/2019 43.
Power purchase and energy trading
Ofgem: Commitments from EPEX Spot SE and EEX to address competition concerns in relation to wholesale trading activities accepted
On 18 June 2019, Ofgem announced its decision to accept commitments from EPEX Spot SE (and its parent company EEX) to take steps required of EPEX to enable other Nominated Electricity Market Operators, in particular Nord Pool, to participate in certain electricity trading auctions between Great Britain and Ireland, and to carry out an internal review of its competition law training. This is to address competition concerns identified by Ofgem in the course of its investigation launched in December 2018 into whether there had been an infringement of Chapter II of the Competition Act 1998 and/or Article 102 TFEU, concerning a potential abuse of a dominant position in relation to wholesale trading activities. The investigation examined whether EPEX Spot SE, a power exchange operating in Great Britain, had abused or was abusing a dominant position in relation to access to cross-border intraday electricity trading platforms and related services between Great Britain and Ireland. The investigation is now closed. See: LNB News 19/06/2019 10.
Oil and gas
Asset Integrity Task Group develops road map to reduce planned and unplanned integrity losses
OGA has announced that the Asset Integrity Task Group has developed a new road map aimed to reduce planned integrity losses by 20% and unplanned integrity losses by 60% in the UKCS. The Asset Integrity Task Group is a subgroup of the MER UK Asset Stewardship Task Force which was formed in 2017 to drive improvements in asset integrity across all UKCS facilities through reducing hydrocarbon losses. See: LNB News 19/06/2019 101.
Nuclear
Nuclear Industry Association report highlight sector collaboration
The Nuclear Industry Association has released a report called ‘National Decommissioning & Waste Management Pipeline—Nuclear Sector Deal’. The authors of the report outline all significant current and future decommissioning and waste management projects, including civil nuclear, defence and naturally occurring radioactive material. The ‘pipeline’—mentioned in the report—brings ‘cross sector information and data together, to establish a platform that can be used to understand opportunities to deliver better value for money across the sector’. See: LNB News 19/06/2019 97.
Brexit
Euratom Research and Training Programme (Revocation) (Eu Exit) Regulations 2019
SI 2019/1012: This enactment is made in exercise of legislative powers under the European Union (Withdrawal) Act 2018 in preparation for Brexit. This enactment revokes certain retained direct EU legislation in relation to Euratom research and training programme in order to address deficiencies in the operation of retained EU law arising from the UK’s withdrawal from the EU and the European Atomic Energy Community (Euratom). It comes into force on exit day. See: LNB News 14/06/2019 8.
Air emissions, efficiency and climate change
Significant disruption to several industries required to meet net zero targets
The UK Energy Research Centre has published a report assessing the impact of the government’s target of net zero emissions by 2050. The report discusses the level of disruption that is expected to be required in certain sectors to achieve this target, stating that businesses will need to make fundamental changes to business models and operating practices. See: LNB News 19/06/2019 90.
£10m fund to finance clean energy for rural sports clubs, schools and churches
The Department for Business, Energy & Industrial Strategy has announced a £10m fund to finance clean energy for rural sports clubs, schools and churches. Grants of up to £40,000 can be used to finance solar battery storage, wind, hydro and geothermal heat projects. The fund aims to allow savings on energy bills, reduction of emissions and generation of income by selling energy back to the grid. See: LNB News 19/06/2019 14.
Source: LexisNexis Purpose Built
Energy weekly highlights—21 June 2019
by Hardwick Legal | Jun 14, 2019 | Purpose Built (LexisNexis)
This week’s edition of Energy highlights includes analysis on the impact of the introduction of the Smart Export Guarantee (SEG) and what it means for small-scale generators; the Department for Business, Energy & Industrial Strategy’s (BEIS) publication of the government’s responses to ‘The future for small-scale low-carbon generation: Part A and B’ in respect of SEG; as well as an announcement that it will invest £33m in 32 companies from across the UK to develop the next generation of low-carbon vehicles.
Renewable energy
Smart Export guarantee introduced
Energy analysis: BEIS has made provisions to introduce the long awaited SEG scheme, intended to provide a route-to-market for smaller generators following closure of the Feed-In Tariff Scheme to new applications on 31 March 2019. We consider the impact of the introduction of the SEG on suppliers and what it means for small-scale generators. See News Analysis: Smart Export Guarantee introduced.
Government outlines responses to small-scale low-carbon consultations
BEIS has released the government’s responses to two consultations—‘The future for small-scale low-carbon generation: Part A’ and ‘The future for small-scale low-carbon generation: Part B’. See: LNB News 10/06/2019 34.
Smart Export Guarantee Order 2019
SI 2019/1005: Provisions are made to introduce SEG, which provides for payments to be made by mandated electricity suppliers to small-scale low-carbon generators exporting electricity to the grid in Great Britain. This Order will come into force partly on 1 October 2019 and fully on 1 January 2020. See: LNB News 11/06/2019 6.
Government to invest £33m in companies developing low-carbon vehicles
BEIS has announced that it will invest £33m in 32 companies from across the UK to develop the next generation of low-carbon vehicles. The investment will come through the advanced propulsion centre (APC) and is part of the government’s modern industrial strategy. APC investment will cover initiatives such as the development of high-performance battery packs, electrified construction equipment and hydrogen-powered engines (as well as the establishment of supply chains). See: LNB News 10/06/2019 60.
UK to invest £23m in developing electric car battery technologies
The government has announced that it is giving £23m towards the development of the latest technology for electric car batteries. Companies of all sizes across the UK are among the list of winners to receive portion of the Faraday Battery Challenge, to help the UK remain at the forefront of developing the latest electric vehicle technology. The companies will use the funding towards developing electric car battery technologies, to support the UK’s transition towards being a zero emissions economy. See: LNB News 11/06/2019 89.
Air emissions, efficiency and climate change
UK to reduce net emissions to zero by 2050
The Prime Minister, Theresa May, has announced new legislation to reduce net UK emissions to zero by 2050. The target, based on advice from the Committee on Climate Change, will be implemented through a statutory instrument laid on 12 June 2019, amending the Climate Change Act 2008 (CCA 2008). When made, the statutory instrument would make the UK the first G7 country to legislate for net zero emissions. Lawyers from Herbert Smith Freehills, Cornerstone Barristers and Burgess Salmon comment on the target, adding it ‘shows that—whatever else arises from the Brexit debate—the UK still wants to be a world leader on reducing carbon emissions’. See: LNB News 12/06/2019 115.
UK praised by IEA for action against climate change
The International Energy Agency’s (IEA) latest review of the UK’s energy policies has praised the progress which has been made in decarbonisation reform, and clean energy technologies. The report acknowledges that the UK government has a good track record in its approach to tackling climate change, both domestically and globally, but finds that ‘outside of the UK power sector, there is still significant potential for improvements’. A mixed approach of options such as technology innovation and electrification, stimulated by fiscal policies and energy efficiency, are the best approach to make further change, says the IEA. See: LNB News 06/06/2019 58.
Source: LexisNexis Purpose Built
Energy weekly highlights—13 June 2019
by Hardwick Legal | Jun 7, 2019 | Purpose Built (LexisNexis)
This week’s edition of Energy highlights includes the Office of Gas and Electricity Markets’ (Ofgem) review into whether the introduction of the cap on default and standard variable tariffs has impaired competition and its consultation on Scottish Hydro Electric Power Distribution’s (SHEPD) proposals to contribute to planned transmission links to Shetland, Western Isles and Orkney. We also cover the launch of guidance in relation to the Department for Business, Energy and Industrial Strategy’s (BEIS) new Rural Community Energy Fund (RCEF) and the Oil and Gas Authority’s (OGA) award of licences under the 31st Offshore Licensing Round. We provide updates on new content and look at some key upcoming dates for the diary over the next few weeks.
Electricity and gas market regulation and licensing
Ofgem open review into whether tariff cap has impaired competition
Ofgem has opened a consultation into whether conditions are in place for effective competition in the domestic energy retail market. Ofgem seek stakeholders’ opinion as part of their review into whether the introduction of the cap on default and standard variable tariffs has had an impact on the conditions for effective competition. Under Domestic Gas and Electricity (Tariff Cap) Act 2018, Ofgem is obliged to review whether the introduction of the cap has had such impact or not by 31 August 2020, including a recommendation on whether the cap should remain in place for 2021. The consultation runs until 9 July 2019. See: LNB News 30/05/2019 34.
Ofgem: E Gas and Electricity, Economy Energy and Dyball Associates fined £870,000 for breaching competition law in relation to the supply of gas and electricity to domestic customers
On 30 May 2019, Ofgem announced that two suppliers, E (Gas and Electricity) Limited and Economy Energy, and energy software and consultancy service, Dyball Associates, have been collectively fined £870,000 for infringing Chapter I of the Competition Act 1998. Ofgem found that the companies breached competition law by preventing, restricting and distorting competition among energy suppliers by entering into an agreement to prevent Economy Energy and E actively targeting each other’s energy customers through face-to-face sales. See: LNB News 30/05/2019 28.
Ensuring Electricity Distribution Licence is suitable for all licensees—consultation
Ofgem has launched a consultation on its updated proposal for Electricity Distribution Licence modifications relating to the competitive deployment of storage, and licence applications from affiliates of existing distribution licensees. The consultation, which will close on 28 June 2019, gives stakeholders an opportunity to submit their views prior to Ofgem making a final decision. See: LNB News 04/06/2019 26.
Networks and connections
Power supplier proposes contributing to Scottish transmission links—consultation
Ofgem has launched a consultation on SHEPD’s proposals to contribute to planned transmission links to Shetland, Western Isles and Orkney. Alongside the consultation, which closes on 10 July 2019, Ofgem has set out its views on the proposals and supporting information. See: LNB News 30/05/2019 41.
Capacity Market (CM), balancing services and energy system flexibility
Government to introduce legislative changes to CM following consultation
BEIS has published its response to the consultation on proposals for further amendments to CM. The consultation ran between 7 March 2019 and 4 April 2019 and attracted 42 responses from CM providers, generators, interconnectors, suppliers, a local authority, non-governmental organisations and trade associations. See: LNB News 04/06/2019 18.
Renewable energy
Fund will provide £10m for renewable energy projects in rural areas
BEIS and the Department for Environment, Food and Rural Affairs (Defra) have published guidance on how to apply for RCEF—a £10m scheme supporting rural communities in England in setting up renewable energy projects. BEIS and Defra have explained that RCEF will provide support in two stages. The first stage will provide grants of up to £40,000 for a feasibility study for a project and the second stage will provide grants of up to £100,000 for business development and the planning of feasible schemes. See: LNB News 31/05/2019 19.
Oil and gas
OGA announces awards in 31st Offshore Licensing round
OGA has offered for award 37 license areas in the 31st Offshore Licensing Round. The awards cover over 141 blocks or part-blocks for 30 companies, ranging from super-majors to new entrants. The next Offshore Licensing Round will be launched in Summer 2019, providing exploration and field development opportunities in mature areas of the UK Continental Shelf. See: LNB News 04/06/2019 17.
Source: LexisNexis Purpose Built
Energy weekly highlights—6 June 2019
