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Utility Week December Digital Edition

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8 | DECEMBER 2020 | UTILITY WEEK The top stories… Electricity Energy Water What has happened? At the start of last month, National Grid issued and subsequently withdrew two notices warning of an expected shortfall in electricity supply as it sought to entice gen- erators into the market with the promise of higher prices. It was the first time it has issued an electricity margin notice since 2016 (when they were referred to as notices of inadequate system margin). The electricity system operator stressed that while it always had enough generation to meet demand, the margins had become tight owing to factors including the weather, demand and the availability of generators. What has happened The water industry has revealed its plan to cut around 10 million tonnes of carbon emissions in the coming decade at a cost of between £2 billion and £4 billion. Water UK published the route map to deliver net zero carbon emissions by 2030 aer a sector-wide pledge to reach the goal two decades ahead of the UK's national tar- get. Geographic and regional differences across the sector mean there is no "one size fits all" approach, Water UK has stressed, and individual company plans will need to align with the wider plan. What they said Christine McGourty, chief executive of Water UK, said: "We don't have all the answers, and we can't do it alone. But with the sup- port of government, regulators and the sup- ply chain, we believe we can deliver a net zero water supply for customers that also helps build the green skills and solutions needed to protect the environment for gen- erations to come." Heidi Mottram, chief executive, North- umbrian Water, said: "We are standing up to take on this challenge head on, as the first sector in the world to have a detailed plan to What has happened The Competition and Markets Authority (CMA) has launched an investigation in response to the growing number of products and services marketed as environmentally friendly, adding that in 2019 £41 billion was spent on "ethical goods and services" – almost four times as much as people spent two decades ago. Based on the CMA's own research and evidence, it is concerned that the surge in demand could incentivise some businesses to make misleading, vague or false claims about the sustainability or environmental impact of their products, such as exaggerat- ing the positive impact a product has on the environment. The investigation will focus on textiles and fashion, travel and transport and fast-moving consumer goods. However, there have been calls for it to include power suppliers as well. What they said Juliet Davenport, chief executive of Good Energy, said: "There are more suppliers than ever offering '100 per cent renewable' tariffs, but we know most of them do not even buy renewable power, or offer prod- ucts which have additional environmental benefit." Keith Anderson, chief executive of Scot- tish Power, said: "The bottom line is that customers should be able to trust in their supplier. They should [be able to] trust in the integrity of the service they receive and to do that we need have transparency – real transparency – about what suppliers do, how suppliers work, the cost of the service, and going forward, really critical to that is how green is the energy customers are actu- ally receiving." What this means The debate around renewable electricity guarantees of origin (REGO) certificates Tight generation margins put the squeeze on Growing backlash against 'greenwashing' Low wind speeds were cited as one of the reasons that supply margins tightened The sector fleshes out plans for ambitious net zero target Water sector unveils its roadmap to net zero by 2030

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