Utility Week

4 | 11TH - 17TH OCTOBER 2019 | UTILITY WEEK Seven days... Brussels lights up energy stocks UK power stocks surged on reports that the European Commission is set to reinstate the multibillion pound GB capacity market - the main government policy for "keep- ing the lights on". As part of the scheme, the UK government pays energy companies extra to prevent blackouts by mak- ing sure there is enough reliable electricity supply during times of high demand. So far it has paid out almost £6 billion in contracts, but the EU, which approved the market in 2014, reversed its decision last year while it investigated concerns that it breached rules on state aid. The Times National Grid open to giving up managing UK's electricity National Grid would "absolutely consider" relinquishing its role managing Britain's electricity system to an independent body if policymakers decided it was the "right thing to do", according to the company's chief executive. John Pettigrew told the Financial Times he would be likely to sit down with the UK government and Ofgem next year to look again at how the country's electricity system is operated. Financial Times Google goes green, but data needs fossil fuels Next year Google's portfolio of clean power assets globally will be 5.5GW, and the company is keen to promote its green credentials. Yet behind the headlines trumpeting the strides the industry is taking towards "100 per cent renewable" energy, another reality is emerging. Today data centres account for 1 per cent of all global electricity demand and tech com- panies are scrambling to balance intermittent sources. The Sunday Times In the media Nolan: Suppliers should pay RO dues monthly O fgem has urged the government to amend the Renewables Obligation scheme to require suppliers to pay monthly instead of annually. The regulator's outgoing chief executive, Dermot Nolan, told Utility Week Congress in Bir- mingham this week that he had written to the Department for Business, Energy and Industrial Strategy (BEIS) and was confi- dent changes would be made. It comes a†er Ofgem issued a public warning to four suppliers who missed the initial deadline of 1 September, owing a total of £14.7 million. Last year an "unprecedented" 34 suppliers failed to meet their full obligations by the Septem- ber deadline. Nolan said: "We have written to BEIS asking that they might change the legislative framework to make sure payments are per- haps quarterly but ideally every month, as happens with capac- ity auctions. I think that would change the incentive somewhat. I think BEIS will make changes in that regard, although I can't speak for them." In a wide-ranging session on regulation, in which he appeared on stage with Ofwat chief executive Rachel Fletcher, Nolan also talked about how Ofgem may have to become more "interventionist" if it is to stimu- late mass public behavioural change around decarbonisation. He said this was particularly true when it came to electric vehicles and how to manage the demands on the networks result- ing from charging. He said: "Things we are thinking about at the moment include whether to put in some sort of mandate where the default charging rate at peak times is frankly very high. Now, that might evolve very naturally through market conditions and incentives but it might not. We might have to make an active intervention into people's lives. They in turn may not like that. There may be outrage. So, we have to justify that level of inter- vention." See analysis on Ofgem's new CEO Jonathan Brearley, p8 See analysis on Conservative party conference, p10 "A truly extraordinary effort … managed to make this impressive feat of engineering the new norm." Duncan Clark, programme director, Orsted, speaking on installation of the last turbine at the 1.2GW Hornsea One offshore wind farm STORY BY NUMBERS Smart meter rollout rules Ofgem is consult- ing on reporting requirements for suppliers under the government's proposed new smart meter rollout regime. 2020 Original date of existing smart meter obligation for suppliers to take "all reason- able steps" to install meters in customers' homes by 31 December. 30m Number installed compared with the programme's target figure of 53m. 2021 Proposed new obligation will be introduced. 250k Current addi- tional reporting requirements apply only to suppliers with at least a quarter of a million elec- tricity and gas accounts. Rachel Fletcher and Dermot Nolan at the Utility Week Congress

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