Utility Week

4 | 15TH - 21ST FEBRUARY 2019 | UTILITY WEEK Seven days... Trump tells Iraq to boycott Iranian energy The Trump administration is pres- suring Iraq to stop buying energy from its neighbour and sole foreign supplier, Iran, in what has become a major point of conflict between Washington and Baghdad. Iraqi leaders, fearing that a further shortfall in power would lead to mass protests and political instability in their electricity-starved country, are pushing back on the demand, which is rooted in presi- dent Trump's sanctions against Iran. New York Times, 11 February Shift to clean energy will boost the EU A transition towards a low-carbon economy is forecast to boost output and employment growth in the EU thanks to a spur in investment in clean energy, according to a new report. An analysis run by Cambridge Econometrics and EU agency Eurofound's European jobs monitor calculated that the EU28 GDP would be 1.1 per cent higher by 2030 if the Paris Climate agreement was imple- mented compared to the baseline scenario. The number of jobs would be boosted by 0.5 per cent over the same period. Financial Times, 12 February Solar sector lost 8,000 jobs in US last year The solar sector lost 8,000 jobs in the US last year, the second consecutive year of declines, hit by uncertainty over the Trump admin- istration's energy and trade policies and a 30 per cent tariff on imported panels, according to a report last week. But according to the Solar Foundation, solar employment has grown 159 per cent, from 93,000 to more than 242,000 jobs in all 50 states over the past nine years and the report concludes the long-term outlook is positive. The Guardian, 12 February National media Ofgem raises default price cap on SVTs to £1,254 a year O fgem has announced that the default price cap on standard variable tariffs (SVTs) is to rise by £117 to £1,254 a year. The price cap for pre- payment meter customers will increase by £106 to £1,242 a year for the same period of a six- month "summer" price cap. The new caps will come into effect on 1 April and will be reviewed again later in the year. Ofgem estimates that around £74 of the £117 SVT increase was due to higher wholesale energy costs, which make up more than a third of the overall cap. Wholesale energy costs are 17 per cent higher than they were during the last cap period, largely because of higher oil prices and a higher demand for gas during the Beast from the East extreme weather event. The regulator had already indicated that if the trend of rising wholesale costs contin- ued it was likely that it would announce an increase this month, to come into effect in the spring. Ofgem said other costs, including network costs and costs associated with environ- mental and social schemes (policy costs), have also risen and contributed to the increase in the level of the caps. Its chief executive, Dermot Nolan, said: "Under the caps, households on default tariffs are protected and will always pay a fair price for their energy, even though the levels will increase from 1 April. "We can assure these custom- ers they remain protected from being overcharged for their energy and that these increases are only due to actual rises in energy costs, rather than sup- plier profiteering. "Alongside the price caps, we are continuing to work with government and the industry to deliver a more competitive, fairer and smarter energy market that works for all consumers." Adam Scorer, chief executive of fuel poverty charity National Energy Action, expressed his concern and said the higher caps "will have a hugely damaging impact on the most vulnerable in our society". AJ "Standard tariffs were a bad deal at the old cap level and they'll be an even worse deal at the new level." Uswitch energy expert Rik Smith on the decision by Eon to raise its standard variable tariff to the new level of the price cap. STORY BY NUMBERS Utility diversity campaign The bosses of more than 30 of the UK's biggest utility companies have pledged to increase the diversity of their workforces to better reflect the communities they serve. 32 chief executives have signed up to Energy & Utility Skills Partnership's "inclusion commit- ment" to improve the inclusivity of their hiring prac- tices. 566,000 people currently work in the industry. 17% of them are women, compared wtih the national average of 47 per cent. 5% of the sector's workforce identify themselves as from a Black, Asian or Minority Ethnic background, compared to 15 per cent for all sectors.

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