Utility Week

4 | 19TH - 25TH JULY 2019 | UTILITY WEEK Seven days... New nuclear finance model 'expected' The government will set out plans to resuscitate the UK's struggling nuclear ambitions with a new scheme which would leave taxpay- ers liable for rising costs or delays. The funding model, expected this week, could help bankroll the multi-billion pound plans for a follow-on to EDF Energy's Hinkley Point C project in Somerset, which ministers aim to build at the Size- well site in Suffolk. Government officials are expected to reveal a new financial framework based on the model being used to finance the £4.2 bil- lion Thames Tideway tunnel. The Guardian, 14 July Ireland 'should use biofuel for heating' The oil boiler and storage tank industry says blending home- heating oil with biofuels could lead to a significant cut in Ireland's greenhouse gas emissions. The lobby group further claims that the change would be easier and cheaper to achieve than the govern- ment's target for home renovations. Government plans published last month include a target to install 400,000 heat pumps in homes by 2030. However, heat pumps are not suitable for poorly insulated homes. This means most owners would have to spend €15,000-60,000 on renovations, depending on the age of their home. The Times, 14 July Consumers 'need more protection' Britain's biggest regulators need to act more robustly to prevent water, energy, telecoms and financial consumers from being exploited by suppliers, according to a damning report by MPs. Prices are high, bills are confus- ing and accessing the best deals can be difficult, they said. Financial Times, 12 July In the media Ofwat proposes £200m fund for innovation W ater companies could be granted permission to increase customer bills to access funds of up to £200 million to stimulate innovation in the sector between 2020-25. Ofwat has proposed a com- petition or end-of-period reward for the successful rollout of innovative projects. If both were progressed, the £200 million would be shared between the two projects. The proposals are included in a consultation from the regula- tor, the launch of which was flagged up by Utility Week earlier this month. The consultation will look at the potential for sector-wide joint innovation as well as com- pany-led innovation in the form of a water centre of excellence. It will also explore how regu- lation can act as an enabler of innovation, including the poten- tial to provide advice to fledgling projects and help to break down barriers to deployment. Ofwat has identified three areas in which it sees opportuni- ties for companies to work better together and with stakeholders to develop innovative solutions: company culture; joint working within the sector and beyond; and effectively rolling out new technologies, methods or approaches. Under a collectively funded innovation competition model, there would be an annual contest in which companies pitch projects to be financed by the mechanism. Ofwat said it expected this could be set up within the first year of AMP7. The end-of-period reward payment would recognise com- panies that had demonstrated the most successful rollout of innovation to the benefit of cus- tomers over the five years. The regulator said it saw the potential to include this alongside the annual competi- tion to stimulate scale rollouts, although it accepted there was a risk of double-funding. JW "Ministers have continued to sit on their hands and failed to deliver the policies needed to boost energy efficiency" A BEIS committee report calls on the government to take direct action to boost the energy efficiency of homes. STORY BY NUMBERS Water firms 'could do more' Ofwat's State of the Market 2018/19 report says firms must do better in the competitive non- domestic water retail market. 4x Complaints to CCWater have quadrupled since market opening. 60% Percentage of dissatisfied customers who cited billing as the reason. 5% Percentage who said they were "very dissatisfied". 80% Percentage who were "fairly" or "very" satisfied with their retailer. £10m Amount custom- ers are estimated to have saved in the second year of the market.

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