Utility Week

"Regulators have largely put the onus on companies to address pressure on credit metrics, and highly leveraged companies with expensive long- dated debt may struggle to do so" Ofgem and Ofwat's attempts to restrict regulated returns threatens company credit ratings, says Moody's. UTILITY WEEK | 18TH - 24TH OCTOBER 2019 | 5 In the Queen's Speech on 14 October, the government outlined an environment bill that would introduce powers to force water firms to work together more closely to tackle looming short- ages. A new regulator would also be set up to take on environ- mental responsibilities currently undertaken by the EU, and legally binding environmental targets would be introduced. According to background briefings, the bill would seek to ensure "long- term, resilient water and waste- water services". However, the government lacks a majority and with Brexit deadlocked is trying to force a general election. ENERGY Shell buys Green Star Energy from Canadian owners Shell Energy Retail has bought Hudson Energy Supply, including its domestic retail arm Green Star Energy, for "up to £10.5 million". Hudson's Canadian owner Just Energy made the announcement on 8 October. The company's domestic retail arm Green Star is a renewable electricity supplier that supplies 200,000 UK customers. Hudson also provides green electricity to around 2,000 business customers. As part of the agreement, Just Energy will receive £2 million at closing and up to £8.5 million to be paid depending on whether the capacity market is reinstated. Hudson will operate as a wholly owned subsidiary of Shell Energy until completion of the deal, which is expected by the end of this year. Colin Crooks, chief executive of Shell Energy Retail, said: "This deal will take the number of Shell Energy Retail's UK residential customers to just under 1 million." Awards shortlist revealed Finalists for this year's Utility Week Awards are announced today (Friday 18 October). Visit our website for a complete shortlist: https://utilityweekawards.co.uk 0 20 40 60 80 100 120 Technical capability (generation) De-rated generation capacity ACS peak underlying demand GW Nuclear Thermal Renewable Storage Other embedded supply + DSR Interconnector imports Demand Operating reserve De-rated margin of 7.8 GW (12.9%) ELECTRICITY SUPPLY MARGIN CONTINUES TO WIDEN For the fourth year running, the system operator at National Grid has raised its outlook for the de-rated electricity supply margin over the coming winter, this time to 7.8GW – or 12.9 per cent. £196bn The cost of Labour's renationalisation plans, according to a report out this week by the CBI.

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