Utility Week

UTILITY WEEK | 29TH NOVEMBER - 5TH DECEMBER 2019 | 5 ENERGY Labour majority 'could derail Ovo/SSE deal' A Labour government could make challenger brand Ovo Energy "reconsider" its plan to buy big six supplier SSE's retail arm, a former Npower boss has said. Ovo has reached an agreement with SSE to buy its retail arm for £500 million. Following Labour's manifesto launch, in which it promised to nationalise the big six, Paul Mas- sara said while a Labour major- ity seems unlikely, it could be a "brave" move to continue with the transaction if they were to win power. Speaking to Utility Week, he said: "Given Labour's plans, it then could affect everything. It would be a very brave decision to go ahead if there's that much political risk changing it." In the ambitious document titled "It's Time for Real Change", Labour does not clarify what it classes as the "big six" and whether Ovo would be included within this as a result of its planned acquisition. Book your table Table bookings are open for this year's Utility Week Awards. The full shortlist is available at: https://utilityweekawards.co.uk ENERGY King's Lynn reopens Centrica has reopened the King's Lynn power station in Norfolk following a major refurbishment that included the installation of a new gas turbine. The facility was mothballed by Centrica in 2012 due to its low efficiency at a time of rising gas prices. As part of the three- year upgrade, the combined- cycle gas turbine has seen its generation capacity increase to 386MW. "The speed and flexibility of King's Lynn supports the transi- tion to a renewable-led energy system, helping balance the grid during gaps in generation caused by the intermittency of renewables," said Jorge Pikunic, managing director of Centrica Business Solutions. ENERGY Leadsom delays decision on Thanet Extension windfarm Business and energy secretary Andrea Leadsom has delayed a decision on whether to grant planning permission for the Thanet Extension offshore windfarm while she awaits clarifications on a num- ber of issues. A notice on the Planning Inspec- torate's website says the minister will set a new deadline for the decision once parliament is back in session. She was due to make a decision by 11 December. In an open to letter to the devel- oper Vattenfall and other interested parties, Gareth Leigh, head of energy infrastructure planning at the Department for Business, Energy and Industrial Strategy, sought confirmation that the project has been granted a seabed lease by the Crown Estate. The proposed Thanet Extension off the coast of Kent will feature up to 34 turbines with a combined output of up to 340MW. £16.5m Cost of the Department for Business, Energy and Industrial Strategy's heat pump trial, which will be managed by the Energy Systems Catapult. Pensioners could sue if Labour renationalises utilities on the cheap Millions of pensioners and investors could sue the govern- ment if renationalisation of parts of the utilities sector took place at below market value. The impact of such a move would be felt by the majority of pension funds in the UK, as well as overseas investors. That is according to advi- sory legal firm Clifford Chance, which advises affected com- panies and investors on how nationalisation would work. Dan Neidle, partner at Clifford Chance, said: "If Labour tried to do it on the cheap, people could sue. Most people would say it's unfair and the pension- ers who own those pension funds would be pretty unhappy if they bought an asset for £100 and now they're getting £10 or £20 for it." He added that pension funds are "disproportionately invested in the utility sec- tor" for the long-term steady returns that the water sector provides. "If the Conservatives wanted to increase electric vehicle uptake, they should remove VAT on electric vehicles" Patrick Hall of Bright Blue on the Tory manifesto. (See analysis, p8) Energy charities are gearing up to help vulnerable customers claim payments to help them keep warm ahead of winter weather and ensure that payments do not go unclaimed. They have designated 29 November Fuel Poverty Awareness Day to raise the profile of the issue. The spotlight on fuel poverty comes as utility firms look to improve the way they communicate with vulnerable customers as we move into a digital age.

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