Utility Week

UTILITY WEEK | 12TH - 18TH JULY 2019 | 15 Policy & Regulation This week Anglian makes public interest commitment Water company says it is the first to enshrine public interest in its articles of association Anglian Water has become the UK's first water company to enshrine public interest in its constitution. The company has officially changed its articles of associa- tion, embedding public interest within the constitutional make- up of the business. It also intends to sign up to a set of "responsible business principles" against which it will report performance. Anglian will publish an annual statement that sets out how it is doing in relation to key environmental, social and ethical targets. Ofwat chief executive Rachel Fletcher has been considering whether licence change is a viable way of committing water companies to protect the environment and support their wider communities, but has stressed that she would only go down that route if there were a clear appetite from the sector. Anglian said it was important for any social contract to be instigated by a company rather than imposed. Chief executive Peter Simpson said: "I'm proud to say that Anglian Water is the first water company – and I believe the first utility – to make these changes, firmly embedding our commitment in the core documents that govern the management of our business." Anglian is one of four water companies Ofwat has asked to revise their business plans for 2020-25. Ofwat identified a £251 million gap between its estimate and Anglian's on the base costs for water – equivalent to 16 per cent of the full costs. The difference in wastewater is £406 million (also 16 per cent), Ofwat said. JW ENERGY Tougher market entry tests in force Suppliers entering the energy market are subject to tougher tests to "weed out those that are under-prepared, under-resourced and unfit to hold a licence". Under the rules, which came into force on 5 July, companies that apply for a supply licence must demonstrate that they can fund their operations for their first year and outline how they plan to comply with key regula- tory and market obligations. Furthermore, directors and major shareholders of compa- nies applying for a licence, as well as senior managers, will also have to show they are "fit and proper" to hold a licence. Most industry voices wel- comed the new tests, but Rich- ard Neudegg, head of regulation at Uswitch.com, said Ofgem should prioritise checks and bal- ances on existing suppliers. ELECTRICITY No plans to rethink onshore wind policy The government has "no plans" to reverse its resistance to onshore wind farms despite mounting pressure to reverse the policy, a government minister has told the House of Lords. The government previously ruled that onshore wind pro- jects could not bid for support through contract for difference auctions ažer the Conservative victory in the 2015 general elec- tion, and made it easier for local councils to turn down schemes through the planning system. The pressure on ministers to reverse this stance has intensi- fied since the Committee on Climate Change in early May said that the policy is cutting off a source of cheap, low-carbon electricity. Last week, the Con- servative Environment Founda- tion published poll results that showed three-quarters of Tory voters support onshore wind. However, junior business minister Lord Henley said the government has no plans to review the policy. ENERGY Gemserv sets out code reform plans Gemserv has proposed reforms to the numerous industry codes that underpin the operation of the energy system. The code administrator said current arrangements have been criticised as reactive, complex and lacking in co-ordination. Gemserve wants a new self-governance framework that provides "clear accountability and faster decision-making". It said moving away from self- governance by industry, as some have suggested, would leave a gap in expertise that would take a considerable time to replace. Simpson: proud Anglian is first to make change Political Agenda David Blackman "Sir David has stepped into the political jungle this week" Rather than getting up close and personal with gorillas, Sir David Attenborough stepped into the political jungle this week. He was at the House of Com- mons to submit his views on how to tackle climate change to the business, energy and climate change committee. Unsurprisingly, the commit- tee room was more packed than normal. And at the climax of the hour-long Q&A session, there was a moment of theatre as the 93-year-old swivelled around And that gap has widened over the past year. Meanwhile maintaining political focus on the state of the environment will become more difficult as attention shižs back to Brexit before the planned withdrawal date of 31 October. Maybe somebody should send a clip of Sir David's tes- timony to the Tory leadership contestants to concentrate their minds on an issue that looks set to define the lives of their children and grandchildren. to draw the MPs' attention to the largely youthful audience, pointing out that this issue is all about their future. Recently, Parliament has enshrined in legislation the target that the UK should achieve net- zero emissions by 2050. Setting this date strikes the right balance, said Sir David, but setting far off targets is one thing, putting in place the prac- tical policies to turn them into action is another thing entirely. The Committee on Climate Change identified what it saw as a worrying disconnect between the government's rhetoric on cli- mate change and the measures it is putting in place.

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