Utility Week

10 | 19TH - 25TH OCTOBER 2018 | UTILITY WEEK Policy & Regulation This week CCC asked to advise on net zero target Minister has written to CCC for input on how the UK should revise its climate change goals The long-standing target that UK emissions must fall to 80 per cent of 1990 levels by 2050 is under review by the Committee on Climate Change (CCC). At the beginning of Green Great Britain Week, Claire Perry, minister of state for energy and clean growth, formally invited the statutory climate change watchdog to advise on when the UK can cut its green- house gas emissions to "net zero". Alongside her counterparts in the Scottish and Welsh governments, Perry has written to CCC chair Lord Deben asking for input on how the UK should revise its climate change goals to bring them into line with its commit- ments under the 2015 Paris climate change agreement to limit warming to 2C or 1.5C above pre-industrial levels. The letter follows last week's report by the Intergov- ernmental Panel on Climate Change, which says govern- ments must speed up their actions to reduce greenhouse gas emissions to avoid catastrophic consequences. The letter asks the committee for advice on: setting a date for achieving net zero greenhouse gas emissions, including from transport, industry and agriculture; whether the UK needs to review its 2050 target of cut- ting emissions by at least 80 per cent relative to 1990 levels, enshrined in the 2008 Climate Change Act, in order to meet international climate targets set out in the Paris Agreement; how emissions reductions might be achieved in industry, homes, transport and agriculture; and the expected costs and benefits of cutting emissions entirely compared with current targets. DB WATER Smith: regulation must remain 'tough' Whether a single "super- regulator" emerges or not, utility regulation must be "tough", Consumer Council for Water chief executive Tony Smith has insisted in an interview with Utility Week. He warned that having one big regulator that was weak would be disastrous for customers. Chancellor Philip Hammond has commissioned the National Infrastructure Commission to review utility regulation, which could see the creation of a single watchdog covering telecoms, gas, water and energy. Smith said regulation plays a "very important role" in the water sector. "Particularly the risk of regulatory action is really important to the credibility of the industry for customers," he said. "Whether a review of regula- tion means that you end up with a different regulatory landscape, who knows. But… what you want is that regulator to be focusing on minimum standards, and tough, quick regulatory action which is justified." The full interview will appear in the 26 October issue and online. ENERGY Npower still seeks 'fuller' court hearing Npower is pursuing a "fuller" court hearing to address "impor- tant issues" raised by Ofgem's collective switching trial process, Utility Week understands. On 24 September, the energy regulator ordered the big six supplier to allow 100,000 of its customers to join a larger collec- tive switching trial. The supplier said it was ready to undertake a collective switch trial of 50,000 customers but this was delayed aer Ofgem issued a provisional order. The regulator applied to the High Court for an injunction compel- ling Npower to comply with the terms of the provisional order. This was granted on 5 October; Npower must now allow 100,000 of its customers to join Ofgem's next collective switching trial. A spokesperson for Npower told Utility Week: "We are contin- uing with our application to court for a fuller hearing to address the important issues raised." EMISSIONS Carbon tax would replace EU ETS The final batch of "no deal" policy papers, published by the Department for Business, Energy and Industrial Strategy on 12 October, states the UK would cease to participate in the EU Emissions Trading System (EU ETS), which would be replaced with an extended carbon tax. More details of how a carbon price would be applied will be in the 29 October Budget. Perry: has written to CCC chair Lord Deben Political Agenda David Blackman "Sadly, Claire Perry's timing was out this week" Timing can make all the differ- ence in politics. Sadly, Claire Perry's was out this week. Since the spring, the minister of state for energy and clean growth has been planning Green Great Britain Week. It was meant to be a showcase for efforts to promote the UK as a beacon for environmentally friendly growth. But Cuadrilla threw a spanner in the works by restarting frack- ing for shale gas on Monday. It seems a tad ungrateful on the firm's part considering how min- awaited EU withdrawal deal was due to be agreed. No doubt part of the point of Green GB Week is to prove the government can focus on matters beyond Brexit. And the clean growth, which Perry has been trying to promote this week, must be a vital element of the UK's post-EU economic future. But given how Brexit hogs the news agenda, it was always going to be a struggle to get any attention for anything, with or without Cuadrilla's move. isters have bent over backwards to accommodate the growth of shale gas in recent years. The resumption of shale gas tests aer a seven-year hiatus completely overshadowed the launch of Green GB Week, which featured as its centrepiece the government's formal invitation to the Committee on Climate Change to review the UK's green- house gas emission targets. The timing was out in another respect, too. The launch also coincided with the latest breakdown in talks over Brexit. This week's EU summit has been a red-letter date in the government's diary for months, given that it was when the long-

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