Utility Week

UTILITY WEEK | 22ND - 28TH NOVEMBER 2019 | 15 Finance & Investment Western Power Distribution (WPD) has launched a trial of a new flexibility platform that will allow the company to procure services in closer to real time. NODES was developed as a joint venture between the Nord Pool power exchange and Nor- wegian energy firm Agder Energi. The platform, which has already been piloted in other European countries, can provide ELECTRICITY Western Power Distribution trials new NODES flexibility platform day-ahead and intraday markets for flexibility. WPD's IntraFlex project will see the addition of a new "auto- rebalancing function" that will prevent intraday trades from cre- ating an imbalance in the wider electricity market and thereby reduce suppliers' exposure to imbalance costs. "This innovation trial will help us understand how we can reduce any impact our flexibility services might have on suppli- ers as well as opening up new opportunities for participants who can't participate at the week-ahead stage," said Roger Hey, WPD's DSO systems and projects manager. Gary Swandells, director of Smart Grid Consultancy, which will provide management and technical expertise, said: "Now SSE writes down £500m on retail sale Results also show revenue down 8 per cent and group adjusted operating profit up 14 per cent SSE's latest results have revealed an almost £500 million write- down on the value of its energy services business being sold to challenger brand Ovo Energy. The figure was included in results published on 13 November for the six months to 30 September. The £489.1 million impair- ment is reflective of the transaction price agreed with Ovo and includes an estimate of total transaction fees to be incurred. SSE agreed to sell its retail arm to Ovo in September this year in a deal that will see all 8,000 employees transferred. SSE's energy services business was reported as hav- ing an adjusted operating loss of £7.4 million, com- pared with £62.1 million in the same period last year. The higher loss in 2018/19 reflected a delay in passing through cost increases to customers in that period. In addition, this year's interims exclude depreciation as a result of the business being presented as held for sale. Meanwhile, gas and electricity customer accounts were at 5.6 million as of 30 September, compared with 6.04 million last year. This represents the slowest rate of net losses in recent years. Other results showed revenue down 8 per cent to £3 billion, with group adjusted operating profit up 14 per cent to £491.9 million. This excludes the company's energy services business and gas production assets, which were up for sale during the period. Adjusted profit before tax was up 15 per cent to £263.4 million. In a results overview, SSE chief executive Alistair Phillips-Davies wrote: "Material progress continues to be made on execution of a strategy that puts SSE at the centre of efforts to decarbonise the UK and Irish economies." AJ ELECTRICITY National Grid makes net zero pledge National Grid has vowed to reduce its greenhouse emis- sions to net zero by 2050 in its financial results for the first half of 2019/20. The commitment mirrors the UK's recent adoption of a 2050 net zero target. Like the country as a whole, National Grid was previously aiming for an 80 per cent reduction in emissions compared with 1990 levels by the middle of the century. "Today's announcement that we are increasing the group's own emissions reduction target from 80 per cent to net zero by 2050 underlines our commitment to lead the industry towards a cleaner energy future," said chief executive John Pettigrew. The company made the pledge as it reported a 1 per cent fall in operating profit to just over £1 billion and a 23 per cent drop in pre-tax profit to £404 million. Underlying profit, the group's preferred metric for gauging its performance, was up 1 per cent to £1.3 billion, reflecting higher revenues from its US arm and lower storm costs. The figure for National Grid Electricity Transmission rose 5 per cent year on year to £582 million, with inflationary increases in its base revenues being partially offset by a true- up of incentive payments to the electricity system operator for previous years. Underlying earnings from National Grid Gas Transmis- sion plunged 27 per cent to £66 million as a result of reduced capacity charges for use of the gas network. ENVIRONMENT Lib Dems promise £100bn for climate Sir Ed Davey has pledged that the Liberal Democrats would invest £100 billion of public money on tackling the climate emergency. In his general election key- note speech in Leeds last Friday, the Lib Dems' shadow chancel- lor and deputy leader said the party would invest the extra money over the five-year lifetime of the next parliament if it forms the next government. The sum includes a new £10 billion Renewable Power Fund that would be designed to leverage in more than £100 billion of extra private climate investment and would "fast-track deployment of clean energy, to make Britain not just the world leader in offshore wind, but also the global number one in tidal power too". Davey, who was secretary of state of energy and climate change in the coalition govern- ment, said: "A Liberal Democrat government will jump-start an economy-wide programme to tackle the climate emergency." He also reiterated his party's promise to invest £15 billion more in energy efficiency "to make every building in the country greener". Phillips-Davies: making 'material progress' that flexibility is moving towards 'business as usual' there is a risk of increased volumes that may impact the wider market. So we see this trial as a challenging but vital body of work to ensure that the expansion of flexibility mar- kets does not negatively impact or distort the wider industry." The project is being sup- ported with funding from the Network Innovation Allowance. This week

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