Utility Week

UTILITY WEEK | 3RD - 9TH MAY 2019 | 9 Policy & Regulation This week Southern Water update due 'soon' The historical performance and reporting about sewerage assets is under investigation by Ofwat Ofwat is making "good progress" with its investigation into South- ern Water and hopes to provide an update "fairly soon", Utility Week understands. The regulator is considering if Southern breached its "statutory duties and licence obligations" regarding the performance of its wastewater treatment sites and the reporting of relevant compliance information. Ofwat opened the investigation in June 2017. The regulator confirmed to Utility Week its intention to provide an update soon a-er a Sunday Times article suggested the Serious Fraud Office (SFO) could open a probe into the water company. A spokesperson for the SFO, which investigates and prosecutes serious or complex fraud, bribery and corrup- tion, said: "We are aware that Ofwat opened an investi- gation into Southern Water but can neither confirm nor deny interest in the matter." Ofwat's investigation is focused on Southern's main- tenance of sewerage systems, as well as financial and management planning and control. Southern Water confirmed it had contacted "law enforcement authorities" in relation to Ofwat's investiga- tion into the historical performance of the company's wastewater sites and data disclosure. A spokesperson for the company said Southern had been "open and transparent about the progress of inves- tigations". They added that the company "decided it was prudent to bring this matter to the attention of the law enforcement authorities". KP ENERGY Ofgem: consumer vulnerability update this summer Ofgem will be updating its con- sumer vulnerability strategy in the early summer, the regulator's chair has announced. Martin Cave, delivering the keynote speech at Citizens Advice's "Consumers at the heart of the future energy system" conference last week, said Ofgem would publish the second iteration of its consumer vulnerability strategy in "early summer". The refresh will set the regu- lator's approach to consumer vulnerability issues until 2025. It will be the first time that the strategy has been updated since it was published in 2013. In his speech, Cave praised efforts by energy companies to help people with specific issues of energy vulnerability, but "unfortunately" these programmes were not "infinitely replicable", meaning Ofgem must provide a strategy to address issues of vulnerability. HEAT 'Crippling' delays are hobbling RHI Tens of millions of pounds of investment in low-carbon heating may have been lost due to the slow progress of Renewable Heat Incentive (RHI) applications, the Renewable Energy Association has claimed. The trade body said delays of up to a year and a half could be "crippling" to some businesses. Ofgem is understood to be work- ing through a backlog of around 900 non-domestic applications. "We have made representa- tions to Ofgem and hope to see improvements, especially as we come to this critical stage with the RHI closing in 2021," an REA spokesperson said. Responding, Ofgem told Utility Week: "Given the RHI scheme is funded by the taxpayer, it is essential that we follow a robust process when carrying out reviews of applica- tions. It is not uncommon for us to need to seek additional information from applicants." ELECTRICITY Perry defends onshore wind ban The UK can meet all its wind power needs from offshore developments, Claire Perry has claimed. The energy minister issued her most emphatic defence yet of the block on new onshore wind when giving evidence to the science and technology select committee last week. Perry has previously defended the ban on the grounds that it implements a commitment in the 2017 Conservative party manifesto. Southern: 'open and transparent' Political Agenda David Blackman "Tougher emissions target should find consensus" Lord Deben doesn't seem to have a lot in common with the bongo-drumming protesters who brought large parts of central London to a halt in the run-up to the Easter weekend. But in his capacity as chairman of the Committee on Climate Change (CCC), the veteran Tory politician showed how their goal of a greenhouse gas emissions-free Britain can be achieved. Admittedly, the CCC hasn't been as ambitious as the Extinc- these powers so it can get to work on factoring the net zero goal into its carbon budget- setting process. Finding the time for legisla- tion shouldn't be much of a chal- lenge, with MPs twiddling their thumbs while Brexit drags on. Securing consensus for the ramped-up target shouldn't be too hard either. Just a handful of MPs voted against the Climate Change Act in 2008 and the sci- entific evidence is even stronger today than it was then. tion Rebellion campaigners, who are pushing for a target of "net zero" emissions by 2025. In its advice to government, published on Thursday (2 May), the climate change watchdog thinks it will take until 2050. Nevertheless, by showing how the government can go beyond its existing target to cut emissions to 80 per cent of 1990 levels by 2050, the report is an important landmark. The ball is now in the govern- ment's court. Setting a net zero target will require an amendment to the 2008 Climate Change Act, which enshrines the 80 per cent goal. The CCC has said it needs

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