Utility Week

4 | 3RD - 9TH AUGUST 2018 | UTILITY WEEK Seven days... UK's first fracking project gets consent A shale developer has cleared the final hurdle to begin fracking for shale gas in the UK for the first time. Government ministers granted Cuadrilla a final consent order days before the summer parliamentary recess, clearing the way for the firm to frack Britain's first onshore shale gas well at Lancashire's Preston New Road site. Cuadrilla plans to apply for another consent order for its second well on the same site before carry- ing out the controversial process of hydraulic fracturing to test the flows of gas from both wells over a six-month period. The Telegraph, 24 July BP to buy BHP's US gas and shale oil assets BP has agreed to buy US shale oil and gasfields from Anglo- Australian miner BHP for $10.5 billion (£8 bil- lion), in the UK firm's biggest acquisition in nearly two decades. Bob Dudley, BP's chief execu- tive, lauded the deal as transforma- tional and industry watchers said the move significantly beefed up the company's US shale presence. The acquisition will boost BP's US oil and gas production by nearly a fih and marks a new period of growth for the company, which is emerging aer years under the $65 billion burden of the Deepwater Horizon disaster. The Guardian, 27 July Water levels could close River Wye Leisure businesses may be stopped from operating on the River Wye if water levels continue to fall. The Environment Agency is trying to protect aquatic wildlife and the riverbed, which could be at risk if canoeists have to get out and walk. It said firms operating on the river could be issued with a ban with just 24 hours' notice. BBC News, 30 July STORY BY NUMBERS National media 'Competition proxy' model to be used for Hinkley link O fgem is pressing ahead with plans to squeeze the amount National Grid can earn from building the Hinkley Point C nuclear plant's new grid connection. The regulator confirmed on 30 July it wants to fund the con- nection with the transmission network by using a new "com- petition proxy" model (CPM), which works on the assumption that the project has been opened up to competition. Under this model, which is informed by the regulator's experience in tendering con- tracts for new transmission links to offshore windfarms, National Grid would build the project without having to compete for the tender. But its revenues for building and operating the con- nection would be set in line with the expected outcome if it had done so. Ofgem estimated in a report, published last week alongside its wider price control frame- work update, that using CPM would save consumers £50 mil- lion to £100 million compared with funding being set through the RIIO T-1 price control. This is down on an estimate earlier this year by Ofgem of £100 million savings, which the regulator said reflected an increase in the anticipated costs of debt and equity during the lifetime of the scheme. The estimated cost of the con- nection has also reduced, from £800 million to £650 million, because it is assumed the pro- ject's pre-construction costs will now be funded through RIIO. The report, which is informed by analysis put out by consul- tancy Cambridge Economic Policy Associates, concludes that the CPM arrangements are "sufficiently attractive" to secure investment grade capital. Jonathan Brearley, Ofgem's executive director for systems and networks, said the CPM model is an example of how the regulator is seeking to ensure impact on bills is minimised while carrying out upgrades to the network. DB MPs' attitudes to offshore wind A survey com- missioned by the Energy and Climate Intelligence Unit shows MPs con- sistently overesti- mate the cost and level of opposition to onshore wind. 52% of those surveyed thought more than 20 per cent of the public was strongly opposed to onshore wind, whereas the true figure is 5 per cent. 8% were aware that onshore wind is now the cheapest way to add gener- ating capacity in the UK. 12% believe large nuclear power stations provide the cheapest new capacity. 66% of the public sur- veyed by Renew- able UK would support more onshore wind. "As the performance and cost of EVs improve, it will be vital the necessary infrastructure keeps pace with consumer demand" Energy UK's chief executive Lawrence Slade, as the industry trade body launched an electric vehicle forum designed to bring together charge point operators.

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