Utility Week

UTILITY WEEK | 23RD - 29TH NOVEMBER 2018 | 3 This week 4 | Seven days 6 | Analysis Capacity market grinds to a halt 11 Policy & Regulation 11 | News Clark proclaims end of energy 'trilemma' 12 | Analysis What is the future of Moorside and UK nuclear as a whole? 15 | View from the top Joe Mangion, chairman, Labrador 16 Finance & Investment 16 | News RO shortfall triggers mutualisation 17 | Analysis SSE-Npower merger is on the back burner 18 Operations & Assets 18 | High viz Anglian Water 3D modelling 19 | Market view A new standard for critical IoT 20 | Event Setting your mind to health and safety 23 Customers 23 | News Water firms urged to be 'customer-centric' 24 | Analysis Are water firms ready for winter? 27 | Analysis Enter the 'energy prosumer' 28 | Case study Northumbrian Water 2017 Utility of the Year Award winner 30 Community 31 | Disconnector GAS 20 | Event Setting your mind to health and safety WATER 18 | High viz Anglian Water 3D modelling 23 | News Water firms urged to be 'customer-centric' 24 | Analysis Are water firms ready for winter? 28 | Case study Northumbrian Water 2017 Utility of the Year Award winner ELECTRICITY 6 | Analysis Capacity market grinds to a halt 12 | Analysis What is the future of Moorside and UK nuclear as a whole? 16 | News RO shortfall triggers mutualisation ENERGY 15 | View from the top Joe Mangion, chairman, Labrador 17 | Analysis SSE-Npower merger is on the back burner 19 | Market view A new standard for critical IoT 23 | News Meter integration 'must be accelerated' 27 | Analysis Enter the 'energy prosumer' Court leaves capacity market in chaos "It usually only happens in the movies", was how one demand-side response champion characterised the shock news that rocked electricity's capacity market this week. But while the unexpected victory of "the little guys" over what has been termed in some quarters as the "unbelievable lobbying power" of giant fossil fuel generators may do well at the box office, in practice the landmark European court ruling has wielded a devastating blow to the sector. The court reversed the European Commission's earlier ruling that the capacity market did not infringe state aid rules, and for those energy businesses hit by the decision it must feel like a plot twist from a badly written disaster film. Certainly, the immediate and indefinite suspension of the mecha- nism means those who had been directing the story are not in line for any plaudits. The government has been forced to put on hold upcoming T-1 and T-4 auctions, and around £1 billion of capacity market payments under existing agreements for 2018/19 now look in peril. Many con- tract holders are facing potentially significant gaps in their balance sheets and major investment uncertainty lies ahead. Although the energy secretary described the judgement as a procedural matter, rather than a reflection on policy or the market itself, few observers agreed. Meanwhile, a spin-off production being trailed is that government could now face legal action for damages from 29 million consumers. It's a cliff-hanger that the embattled industry – already navigating the effects of the price cap, late Renewables Obligation payments, the challenge of unpredictable consumer demand and a relentlessly volatile political and economic climate – could have well done without. And in a week of ongoing Brexit tumult in Westminster, it was hard to miss the irony of a European court diktat arriving unannounced to throw Britain's capacity market into chaos. While Greg Clark was on his feet in parliament battling for the limelight as he unveiled new policy principles around decarbonising generation, proclaiming that the energy trilemma was now over and urging industry to "shout it from the rooops", those at the sharp end were le fearing just what next week's sequel might bring. You couldn't make it up. Suzanne Heneghan, acting editor, suzanneheneghan@fav-house.com See analysis, p6 Leader Suzanne Heneghan Talend: Sponsored Free Water Case Study: optimising water supplies https://bit.ly/2CEQQpf IFS: Sponsored report: Getting Ahead in the Diversifying Energy Market https://bit.ly/2MXkFkI Unify: Sponsored Free Water Case Study: Transform CX and deliver exceptional omnichannel experiences https://bit.ly/2CEQQpf

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