Utility Week

UTILITY WEEK | 22ND - 28TH MARCH 2019 | 9 Policy & Regulation This week Chancellor vows to make gas grid greener Chancellor's commitment to get more green gas into the grid given a wide welcome across sector The government will consult on plans later this year to inject more green gas into the grid, Philip Hammond has pledged. The chancellor made the commitment while unveiling a package of measures to boost sustainability. David Smith, chief executive of Energy Networks Association, welcomed the move. He said: "Britain's gas networks provide the public with large quantities of energy to heat their homes at the times when they need it the most, so it's vital that we continue to decarbonise the gas we all use so we can continue to meet that need while meeting our climate change obligations." Charlotte Morton, chief executive of the Anaerobic Digestion & Bioresources Association, also gave the move strong backing. She said: "The UK's anaerobic digestion industry stands ready to produce this green gas from the millions of tonnes of organic wastes cur- rently going to incineration or landfill or being leŠ to rot, but the industry needs a favourable policy environment from government to help it to deliver this. "While green gas has been the success story of the government's renewable heat incentive, funding for this is currently due to run out within the next two years. We therefore hope that this year's spending review will confirm the government's plans for supporting green gas production into the 2020s, and funding for all English local authorities to roll out universal food waste collections." DB ENERGY Npower switching trial order revoked Ofgem is to revoke a provi- sional order forcing Npower to co-operate fully in a collective switching trial, as it is "satisfied" Npower has now complied. Ofgem issued the order aŠer Npower refused to allow 100,000 of its customers to participate in a trial that would offer those who remained on a default tariff for at least three years a cheaper deal negotiated collectively on their behalf. At the time, Npower said it had not been able to agree "detailed points" with Ofgem at the "final hour". The regulator obtained an injunction to com- pel the supplier to accept the terms. A judicial review rejected all the grounds on which Npower lodged an appeal, and the switching trial took place in autumn 2018. ELECTRICITY Post-Brexit carbon pricing clarity urged Energy and clean growth minis- ter Claire Perry has been pressed to elaborate on the government's plans for carbon pricing once the UK has leŠ the EU. The chair of the House of Lords' energy subcommittee said there are a number of "outstand- ing questions and concerns" fol- lowing her appearance before it last month when she confirmed the government's intention to create a new carbon market linked to the EU emissions trad- ing system (ETS) if the UK leaves the trading bloc with a with- drawal agreement in place. Lord Teverson said that the subcommittee did not share Perry's confidence that a UK- only scheme would be viable if a link with the EU ETS could not be negotiated, and urged the government to seek broader advice on the matter as part of its consultation exercise. ENERGY Scotland sets out 2030 network vision The Scottish government has set out its vision for the transfor- mation of electricity and gas networks between now and 2030 in a report that describes the part networks will need to play in meeting the target from Scotland's 2017 energy strategy of supplying half of the country's energy needs across power, heat and transport from renewable sources by the end of the next decade. The report declares that new transmission infrastructure must be built to support the growth of renewable generation. New interconnectors between Scot- land and Europe should also be installed to enhance the security of the system and create a wider energy market. Green is go: Branston anaerobic digestion plant Political Agenda David Blackman "The Treasury has accepted heat must be decarbonised" Amid the chaos in the House of Commons surrounding the UK's withdrawal from the EU, you could easily have missed the sec- ond most important date in the government's fiscal calendar, which happened last week – the chancellor's spring statement. But while Philip Hammond's time in the political sun was cut short last week, he did put down some important markers. In energy and climate change, the chief of these was his controver- sial announcement that fossil Whitehall to efforts to tackle climate change. But Chris Stark, chief execu- tive of the Committee on Climate Change, identified Hammond as a key player in last week's gas announcements, which he said reflects a wider Treasury acceptance on the importance of decarbonising heat. Given the Treasury's centrality to governmental decision-making, securing its full-throated support for the decarbonisation agenda would be a big fillip. fuel heating systems cannot be installed in new homes from 2025 onwards. The ban will be part of a new future homes standard that puts long overdue flesh on the bones of the prime minister Theresa May's promise a year or so ago to halve carbon emissions from new-build dwellings. Hammond has not been seen as a friend of the environment, with critics contrasting the £60 million given for tree planting in last autumn's Budget with the £30 billion for road building unveiled the same day. More broadly the Treasury has oŠen been labelled as the biggest institutional block within

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