Utility Week

4 | 22ND - 28TH NOVEMBER 2019 | UTILITY WEEK Seven days... Labour to refine 'right to buy' for tenants Labour has dropped a plan to give a new "right to buy" to private ten- ants amid fears that the policy was not workable, according to party figures familiar with its UK election manifesto. But the 2019 manifesto will include other new radical policies including a swathe of nationalisa- tions, although targeting the large energy retailers is now not consid- ered to be a priority for the party. FT Weekend Nationalisations would 'pay for themselves' The nationalisation of water, energy grids and the Royal Mail would save UK households £7.8 billion a year and pay for themselves within seven years, according to academic research. A report by Greenwich Univer- sity's Public Service International Research Unit put the total cost of compensation to private sec- tor owners at just £49.7 billion – around a quarter of the widely quoted £196 billion price tag calcu- lated by the CBI last month, which also covered rail. The Independent Good Energy gives retail a wide berth One of the country's leading energy challengers is turning away from the household market to escape a "price war" that has le• the sector littered with casualties. Good Energy, which supplies renewable energy to about 250,000 homes and firms, says it will instead focus on business clients and helping customers with renewable energy subsidies. The shi• reflects increasing wari- ness in the industry towards domes- tic energy, amid tighter regulation such as the cap on bills, which has contributed to loss-making tariffs and failed challengers. Sunday Telegraph In the media Centrica wins high court challenge against price cap B ritish Gas owner Centrica has won its legal challenge against the way energy regulator Ofgem calculates the default price cap. The case, which was backed by other large suppliers, disputed the way the regulator calculated wholesale costs for the first three months of the cap – between January and March. Ofgem initially consulted on bas- ing the cap on forward contracts between April and September, but in its final consultation the calculations were instead based on the February to July period. Centrica claims it lost £70 mil- lion in the first quarter of the year as a result of the decision. Mrs Justice Andrews ruled that Centrica was "entitled to the declaratory relief that it has sought". A Centrica spokesperson said: "We welcome the judg- ment of the court regarding the treatment of wholesale costs that energy suppliers incur to serve their customers, and the court's assessment of the wholesale costs applicable to the first period of the energy default tariff cap. "This outcome underlines the importance of transparent and rigorous regulatory processes to ensure well-designed regula- tion that is in the interest of a well-functioning energy market, which in turn allows partici- pants to operate with confidence and ultimately benefits all energy consumers. "We look forward to continu- ing to work closely with the gov- ernment and the regulator on the development of future policy and we remain committed to deliver- ing for our customers' changing needs, including through our involvement in the transition to a lower carbon future." An Ofgem spokesperson said: "We are disappointed by the judgment. Our overarching objective was to set the cap at a level that protected consumers. "The judgement does not change the fundamentals of the price cap, which remain in place and will continue to protect 11 million households on default deals, ensuring that they pay a fair price for their energy. "We are considering our next steps in light of the judgment." AJ "Immediate policy action should be taken to improve the thermal efficiency of housing" Fintan Slye, director of National Grid SO, sets out the policy areas a new government must address to facilitate the clean energy transition. See p9 STORY BY NUMBERS Bathing water standards Newly released figures from Defra on bathing water quality at beaches in England and Wales show a rise in standards. 71% Number classified as excellent by Defra – 18 beaches up on last year. 93% Amount now classed as excellent or good. 28% Comparison percentage of those achieving a top grade in the 1990s. £5bn Planned record spend on environmental improvements from 2020 to 2025, according to Water UK. 90% Target for cut in serious pollution incidents.

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