Utility Week

UTILITY WEEK | 1ST - 7TH NOVEMBER 2019 | 9 Policy & Regulation This week ENERGY Support 'critical' for anaerobic digestion Chancellor Sajid Javid has been urged to provide stop-gap funding to support the rollout of biomethane plants when the Renewable Heat Incentive scheme expires in 2021. In a letter to the Treasury, the Anaerobic Digestion and Bioresources Association (ADBA) has called for action across government to more effectively support the process, which traps the methane created by organic waste. It says it is "critical" that there is a commitment of addi- tional support for the anaerobic digestion (AD) process beyond March 2021, including an interim pot of funding for deploying biomethane plants. The letter says this support is necessary while a future funding mechanism is devel- oped because existing tools are not fully fit for purpose. For example, while the contracts for difference provide support for larger AD plants, many in the sector are small. ADBA's chief executive Charlotte Morton said: "As a result of enjoying consistent policy and funding support, the wind and solar industries have become extremely cost-effective and are now established as part of the renewable energy mix. AD should be given the same fair treatment." ENERGY Government must not hamper local net-zero plans Decisions on decarbonisa- tion should be made by local communities instead of a "one size fits all approach", the chief executive of SP Energy Networks (SPEN) has said. Frank Mitchell was speak- ing to Utility Week following the launch of the company's Zero Carbon Communities report last month, which highlights the work needed to achieve net zero. This included research by Capital Economics that suggests the UK will need to install more than 25 million electric vehicle charging points and 23 million heat pumps, equal to 4,000 charging points and heat pumps a day until 2050. Mitchell argued that while the national 2050 net-zero target was a good idea, different areas of the UK have their own targets and they should be given more consideration. "Westminster's 2050 target is great, but they are the slowest person out there. If we have local communities such as Glas- gow, Edinburgh and Liverpool with much more aggressive tar- gets, then the 2050 target really doesn't work for them. "There isn't a one size fits all. I think trying to bring that through in a central committee in London or otherwise is folly." Political Agenda David Blackman "Labour's plans will face scrutiny this time around." It looks like we're off, again. As Utility Week goes to press, the momentum is gathering for a pre-Christmas general election following the Labour party's decision on Tuesday not to stand in the way of a December poll. Irrespective of exactly when it happens, the main election issue will inevitably be Brexit, given that resolving this issue is the whole point of Boris Johnson's gambit to hold an early poll. Competing hard for any leŸover attention, though, will be environment and climate Labour's thinking remains wor- ryingly woolly for a party setting out its stall for government. And recent polling shows that public support for renation- alisation has dimmed, perhaps because the penny has dropped that ordinary shareholders could lose out as a result. Labour's plans for utilities largely escaped scrutiny in the 2017 general election because the party had been written off as an alternative government. They are likely to receive more atten- tion this time around. change, which have risen rap- idly up the political agenda. We know that Labour will push hard on climate change. The party's proposed election planning grid, leaked to The Sunday Times last weekend, shows a whole day allotted to campaigning on climate change. The campaign is then meant to climax with another day devoted to the party's "Energy for All" public ownership plans. Labour's 30 by 2030 policy paper, published last week with input from academics and the industry, provides a roadmap for decarbonising the UK, albeit an ambitious one (see p4). But on renationalisation, CMA investigates Ovo Energy/SSE deal Proposed takeover of SSE's retail arm would make Ovo Energy UK's second-largest supplier The Competition and Markets Authority (CMA) has started its investigation into Ovo Energy's proposed acquisition of SSE's retail arm. The probe was launched on 24 October and will continue until 18 December. A previous planned tie-up between SSE and Npower was given the go-ahead before it was abandoned last year, so it is not expected that this latest deal will flag up any problems for the CMA. Announced in September, Ovo Energy's audacious move would propel it to become the second-largest sup- plier and put an end to the big six. Under the proposals, Ovo would pay £400 million in cash and £100 million in loan notes. The deal would mean Ovo taking on SSE's 3.5 million customers, in addi- tion to approximately 8,000 employees. Speaking when the deal was announced, Ovo Energy chief executive Stephen Fitzpatrick said: "This transac- tion marks a significant moment for the energy industry. Advances in technology, the falling cost of renewable energy and battery storage, the explosion of data and the urgent need to decarbonise are completely trans- forming the global energy system. "For the past three years Ovo has been investing heavily in scalable operating platforms, smart data capabilities and connected home services, ensuring we're well positioned to grow and take advantage of new opportunities in a changing market. "SSE and Ovo are a great fit. They share our values on sustainability and serving customers." JW Fitzpatrick: "SSE and Ovo are a great fit"

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