![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
by Hardwick Legal | Jun 4, 2019 | Purpose Built (LexisNexis)
<p>In this latest podcast of 2019, Mark Davies and Charles Morgan of 6 Pump Court consider and discuss:</p><p data-level="1" data-list="1">- legal action brought by Friends of the Earth (FoE) against Shell, for its alleged role in climate change</p><p data-level="1" data-list="1">- progress under the Government’s 25 Year Environment Plan, and</p><p data-level="1" data-list="1">- the potential prosecution of up to 1130 climate protesters following Extinction Rebellion</p><p data-level="1" data-list="1">To listen to the podcast click<a href="http://ln-multi-web.cloudapp.net/blog/docs/default-source/purpose-built-documents/2019_05_30_environmental_podcast_edited.mp3?sfvrsn=5e3f7292_2&download=true" data-sf-ec-immutable=""> here </a></p><p data-level="1" data-list="1"><b>Shell’s alleged role</b><b> in </b><b>causing </b><b>climate change - listen from 0.30 mins </b></p><p data-level="1" data-list="1">FoE have recently commenced legal action against Shell, in the Court of Appeal in the Hague. Is it surprising that a multi-national oil producer responsible for a possible 1.8% of all carbon dioxide emitted by human activity would be of interest to FoE, asks Charles? The allegation is that, because of its early knowledge of climate change and its role in causing it, Shell is in breach of its duty of care and threatens Articles 2 and 8 of the European Convention on Human Rights by essentially posing a threat to the climate goals of the Paris Agreement. According to FoE Shell is ‘knowingly undermining the prospect of global temperatures being kept below 1.5 degrees Celsius. As Charles points out, the case is likely to be a lengthy one. Why choose the Dutch court? Mark explains FoE’s claim that as Shell’s climate change policy is set by its HQ in the Hague, then dutch law will apply. Under dutch law Shell is not allowed to ’cause a danger to others where measures can be taken to prevent that danger from occurring’. Mark and Charles go on to discuss the similarities this case has with the successful Urgenda Case which largely relied on the same principles of the dutch civil code and which was headed by the same prosecution lawyer. Are FoE likely to succeed here? Mark suggests that much will depend on establishing ‘unlawful endangerment’. Finally, note that the target remedies sought by FoE are very different to those targets for lowering carbon emissions currently set by Shell. </p><p data-level="1" data-list="1"><b>25 Year Environment Plan Progress Report - listen from 4.0 mins</b></p><p data-level="1" data-list="1">Next, Mark and Charles discuss the recently published Progress Report on the Government’s 25 Year Environment Plan (25 YEP). This Report comes 15 months after publication of the 25 YEP itself. Mark notes that of the 40 priority actions expected to make the most significant contribution to the 10 goals of the 25 YEP, 4 have actually been delivered. According to Charles these are a step in the right direction in that they mandate or enable practical action to be taken for the environment, for example the Clean Air Strategy which is already producing some tangible results. According to the Report a further 4 actions are subject to minor delays and 32 are ‘on track for timely delivery’. But, as Charles points out, the 25 YEP doesn’t contain any discernible list of 40 priority actions, rather 168 ‘actions we will take’ and a Table showing Status for Priority Actions containing 4 items completed 2018/2019 and 4 further items ‘ in progress minor delay’. All slightly confusing? Charles asks what other priority actions exist, and what real progress has been made? Answers on a postcard please. </p><p data-level="1" data-list="1"><b>Potential Prosecution of Climate Change Protesters - listen from 7.50 mins </b></p><p data-level="1" data-list="1">In the final part of the podcast, Mark and Charles discuss the apparently low number of prosecutions following Extinction Rebellion in London in April this year. Of 1130 protesters arrested, only 70 have, so far, been charged. Until now those arrested were ‘under investigation’ but the Deputy Assistant Commissioner has now said that the police anticipate ‘putting all of those arrested to the Crown Prosecution Service’. Won’t this drown the Court System? It will certainly test the Courts. Mark explains that at present there is a right to ‘protest in a peaceful way even if it causes some obstruction’. But Charles suggest that there may be another agenda here - the proposed review by the Metropolitan Police of Public Order legislation to discourage similar style protests in the future. Maybe mass prosecutions are a means to achieve this?</p><p>For more information on these stories, see:</p><p>- Lexis PSL News: <a href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/D-WA-A-AC-AC-MsSAYWD-UUW-UZEYAAUUW-U-U-U-U-U-U-ACZWWCCVVE-ACCEYBZWVE-DAAWWEZBW-U-U/1/412012" data-sf-ec-immutable="">State of Netherlands v Urgenda Foundation </a></p><p data-level="1" data-list="1"> - Lexis PSL News: <a href="https://www.lexisnexis.com/uk/lexispsl/environment/docfromresult/D-WA-A-AYWA-AUUU-MsSWYWZ-UUW-UZEYAAUUW-U-U-U-U-U-U-ACZWWCCZZZ-ACCEYBZVZZ-DAUCDAACD-U-U/2/281955" data-sf-ec-immutable="">New report outlines government’s progress in improving the environment </a></p><p data-level="1" data-list="1">- Lexis PSL News: <a href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/D-WA-A-A-A-MsSAYWD-UUW-UZEYAAUUW-U-U-U-U-U-U-ACZWWCCDVB-ACCEYBZCVB-DAUCDADZZ-U-U/1/412012" data-sf-ec-immutable="">Net Zero—will the UK lead the way in combating climate change?</a></p><p> </p><p data-level="1" data-list="1"> </p>
Source: LexisNexis Purpose Built
LexisPSL Environment News Podcast - Latest Edition
by Hardwick Legal | May 31, 2019 | Purpose Built (LexisNexis)
This week’s edition of Energy highlights includes confirmation from the Office of Gas and Electricity Markets (Ofgem) on its methodology for calculating the next round of network controls between 2021 and 2026, which will deliver a ‘smarter and more sustainable’ energy network; the publication of the Department for Business, Energy & Industrial Strategy’s (BEIS) response document for its consultation on the enrolment of Secure SMETS1 meters in the Data and Communications Company’s (DCC) national communications network, along with a final statement for the second carbon budget period, as required by section 18 of the Climate Change Act 2008. Also this week, the Energy Progress Report revealed a significant increase in the global electrification rate.
Electricity and gas market regulation and licensing
Number of people with access to electricity up 360 million since 2010
The number of people without access to electricity has dropped to around 840 million, compared to 1.2 billion in 2010, the Energy Progress Report finds. The current global electrification rate is 89% and is expected to rise to 92% by 2030. Despite significant efforts made to develop and deploy renewable energy technology to generate electricity, development is lagging far behind the goals when it comes to access to clean cooking solutions and the use of renewable energy in heat generation and transport. See: LNB News 23/05/2019 71.
Networks and connections
Ofgem confirms new methodology on price control
Ofgem has confirmed its new methodology for calculating network price controls starting in 2021. In today’s terms, the methodology known as RIIO-2 would set the allowed baseline return on equity at 4.3% (CPIH) in a cost of equity range of 4.0%–5.6%. This is almost 50% lower than under the previous price control (RIIO-1) and it would reduce costs passed on to consumers by £6bn between 2021–2026. See: LNB News 24/05/2019 9.
Capacity Market, balancing services and energy system flexibility
DCC to rollout interoperable smart meter for SMETS1
BEIS has published a response document for its consultation on the enrolment of Secure SMETS1 meters in DCC’s national communications network. From the 21 responses received, BEIS has concluded that it requires the DCC to provide an interoperable smart meter service for the Secure SMETS1 meter set to create a single point of responsibility for communication with devices. See: LNB News 24/05/2019 2.
Renewable energy
UK and Azerbaijan to continue to develop renewable energy sectors
The Department for International Trade has announced that the UK and Azerbaijan have committed to a new partnership that will aim to tackle challenges in the energy sector and build on the renewable energy sectors in both countries. Total trade between the UK and Azerbaijan was worth over £1bn in 2018, a 66.4% increase on 2017, and the UK is the largest investor in Azerbaijan. See: LNB News 24/05/2019 63.
Air emissions, efficiency and climate change
Net UK carbon account exceeds target carbon emissions reduction
BEIS has published the final statement for the second carbon budget period, as required by section 18 of the Climate Change Act 2008. The statement revealed that between 2013–17, UK emissions, as calculated by the net UK carbon account, were 2,398 million tonnes of carbon dioxide equivalent (MtCO2e). This is 384 MtCO2e below the second carbon budget cap of 2,782 MtCO2e. This means that, on average, emissions, as measured by the net carbon account, were 40% lower than 1990 base year emissions over the second carbon budget period. See: LNB News 23/05/2019 78.
Source: LexisNexis Purpose Built
Energy weekly highlights—31 May 2019
