Utility Week

Customers 26 | 7TH - 13TH SEPTEMBER 2018 | UTILITY WEEK Energy minister Claire Perry has been urged to maintain the mechanism that pays house- holds for surplus electricity generated by their solar panels. An open letter, which has been signed by more than 200 individuals, calls for the reten- tion aer next April of the export tariff. This is the mechanism that works alongside the feed-in tariff (FIT) to ensure small solar gen- ENERGY Hundreds urge government not to axe solar export tariff erators are paid for the power they feed into the grid. A government consultation paper on the future policy frame- work for small-scale low-carbon projects, published last month, said FIT subsidies and the export tariff will be axed next April when the existing scheme ends. The letter, issued by the Solar Trade Association, warns the development of the solar power market will be "stifled" if the export tariff is not continued: "If the export tariff is removed, householders, SMEs and others investing in solar and smart technologies will encounter very nascent markets that currently lack regulatory foundations. They would therefore potentially have to spill their power onto the grid for free, effectively subsidis- ing the commercial electricity This week Action on leakage must be taken now Watchdog calls on companies to tackle leakage as amount of water lost rises for second year The amount of water lost through leakage has risen for the second year running, prompt- ing the water watchdog to urge companies to act. A report on resilience published last week by the Consumer Council for Water (CCWater) shows that over- all leakage levels increased by 1.5 per cent in 2017/18 to 3,170 million litres a day. CCWater said the freeze-thaw event in March will have contributed to the increase, but was not "fully responsi- ble" for it. Nine water companies failed to meet their leakage targets for the year. The biggest increases were seen by Portsmouth Water (+8.2 per cent), South Staffs (+3.6 per cent) and United Utilities (+3.3 per cent). A spokesperson for United Utilities said: "When we consulted with our customers on our business plan for 2015-20, their overriding concern was affordability. A clear majority said UU should meet but not exceed regulatory requirements to minimise bills. "Reducing the level of leakage beyond the economic, regulatory level of leakage would have increased bills. We have met our regulatory leakage target for the last 12 years; however, in our new business plan for 2020-25 we have ambitions to go further through more innovative leakage control methods." At the other end of the scale, the largest reductions were made by Hartlepool (-3.4 per cent), Dee Valley (-3 per cent) and Essex and Suffolk (-2.8 per cent). The nine companies to miss their targets for 2017/18 were Bristol, Dee Valley, Cambridge, South Staffs, Essex and Suffolk, Portsmouth, Severn Trent, Thames and Yorkshire. KP WATER Thames Water plans £11.7bn PR19 spend The UK's biggest water services provider has announced an £11.7 billion investment plan to improve infrastructure, service and efficiency as part of its PR19 plan for 2020-25. Thames Water, which serves 15 million customers across London and the Thames Valley area, has submitted its five-year business plan to industry regula- tor Ofwat. The proposals include planning for a strategic reservoir for the south-east region of England. The plan includes £2.1 billion to boost resilience and reduce leakage and follows engagement with nearly one million custom- ers over the past three years. In total, 70 per cent of cus- tomers approved the final pro- posals, which include a four-fold increase in financial support for customers across the region who struggle to pay. Steve Robertson, CEO of Thames Water, said: "Our responsibilities to the environ- ment and customers are huge, and we will partner with them and our peers to insulate our region from the effects of chang- ing climate patterns. "Our proposals are ambi- tious, well costed and widely supported by our customers, who agree we should priori- tise the most vulnerable. Bills will be flat in real terms over the five-year period and our shareholders will receive annual distributions of around £20 million as we prioritise invest- ment on significantly improving service." ENERGY SSE to raise pay-as- you-go prices SSE is to increase prices for some of its customers in line with Ofgem regulations, follow- ing an investigation by the Com- petition and Markets Authority. From 5 October, the "vast majority" of customers with pay- as-you-go meters and customers on the Energy Assist tariff will see their bills rise. Typical dual-fuel customers with standard pay-as-you-go meters and those on the Energy Assist tariff will see an average annual increase of £47, resulting in a typical annual bill of £1,135. The safeguarding tariff price is based on a cap set by Ofgem and is reviewed every six months. SSE said the price rise reflects an increase in the cost of supplying energy, which was acknowledged by Ofgem in its statement regarding a change in the level of the vulnerable customers safeguard tariff cap. A number of suppliers have raised their tariffs recently because of the rise in wholesale energy costs. Green energy sup- plier Bulb increased its prices by 5.1 per cent in August and has indicated another price rise may follow in November. Scottish Power is increasing its standard variable tariff for the second time this year. Leakage: levels increased by 1.5 per cent sector. Domestic households, community groups, farmers and small businesses would be the only generators not paid for their exported power. "Such negative treatment will stifle the market, put off early adopters and give the wrong signals about grid interaction to consumers, thus slowing down UK progress towards a smart and flexible energy system."

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