Utility Week

4 | 10TH - 16TH JANUARY 2020 | UTILITY WEEK Seven days... Hong Kong's richest family clashes with Ofgem over WWU A gas network controlled by Hong Kong's richest family has fiercely criticised the UK's energy regulator for a crackdown on financial returns paid out to foreign owners. Wales & West, owned by bil- lionaire Sir Li Ka-shing, said it was "deeply concerned" and claimed Ofgem's price controls threaten its financial health. The company fears shareholders will have to put their hands in their pockets to keep up with debt repay- ments under plans for a new pricing regime next year. Mail on Sunday Motorway services 'not ready for EVs' Britain's electricity network is "not fit for purpose" and is stifling the rollout of EV chargers along key trunk roads in the UK, say motorway services operators. Simon Turl, chairman of opera- tor RoadChef, said his company's attempts to add charging services have been held up by distribution network operators (DNOs) demand- ing millions of pounds with waits of up to three years to install new power lines. "It feels like our power network at times is not fit for purpose to serve this massive charging need that is coming," said Turl. FT Weekend Hydrogen may be only choice for homes Households could be required to install a boiler capable of burning hydrogen when they next upgrade their central heating system. The government is considering a proposal from the heating industry to set a date by which all boilers on sale would be "hydrogen ready", meaning they burn natural gas but can be converted easily to burning hydrogen. The Times In the media Companies to pay £10.5m over blackout actions R WE and Ørsted have agreed to pay £9 million for failings leading up to last August's major power cut, while UK Power Networks (UKPN) will pay £1.5 million for reconnecting customers too early. In a report on the lessons learnt from the blackout on 9 August last year, Ofgem has said "important questions" needed to be answered about the structure and governance of the electricity system operator (ESO). The report confirmed that Hornsea One offshore wind farm (co-owned by Ørsted and RWE) and RWE's Little Barford combined-cycle gas turbine plant were taken offline a–er a lightning strike. The loss of these two large generators plus the smaller loss of generation at a local level triggered a mass disconnection, which saw one million customers lose power. Hornsea One Ltd and RWE have agreed to pay £4.5 million each into Ofgem's redress fund as a consequence. The payment from UKPN is because it began reconnecting customers independently of the ESO, which Ofgem said could have jeopardised recovery of the system. However, the regula- tor stressed that its action had no impact in this case and that UKPN had taken swi– action to address the underlying problem. The report also said issues were identified with the ESO's management of the system and that a review of its structure and governance, which is already under way, will be accelerated. The regulator said it would work closely with the Department for Business, Energy and Industrial Strategy ahead of its position paper on system governance this year. Ofgem executive director Jona- than Brearley, who will take over as chief executive next month, said: "Consumers and businesses rely on generators and network companies to provide a secure and stable power supply. August 9 showed how much disruption and distress is caused to consum- ers across the UK when this does not happen. That is why it is right that companies that were unable to keep generating have paid into our consumer redress fund." JW "Sometimes with a small majority you have to compromise, but with a big majority you can do what you think is right for the country" Ex-Conservative leader Lord Howard told Utility Week the government could review its effective ban on new large onshore wind and solar projects. STORY BY NUMBERS Renewables beats gas UK renewable generation outstripped gas for the first time in the third quarter of 2019, according to the latest Energy Trends statistics. 38.9% The record amount renewables' share of electricity generation increased to. 32.9% Its share during the same quarter in 2018 38.8% Share of generation from gas, showing renewables 'marginally' surpassed it for the first time. 24% Amount onshore wind generation grew by year on year, compared with 43 per cent for offshore wind, driven by a 21 per cent increase in capacity. RWE's Little Barford

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