Utility Week

8 | AUGUST 2021 | UTILITY WEEK The top stories… Electricity Water Emissions What has happened Business plans have been submitted by Great Britain's six electricity distribution network operators (DNOs) for the RIIO-ED2 price con- trol. The plans for 2023- 28 list a combined £23 billion of total expenditure. Details of the plans and some early reaction are set out on pages 16-17 but key themes that emerged included the development of distribution system operator (DSO) roles, taking a "flex- ibility first" approach to network investment and commitments by all companies to drive down their own emissions What has happened The government's avalanche of policy announcements began with the decarboni- sation of transport strategy. A ban on sales of internal combustion engine (ICE) cars by 2030 had already been promised but the blueprint also set out further landmarks to outlaw the sale of ICE vehicles weighing 3.5 tonnes to 26 tonnes by the middle of the next decade and then all vehicles weighing more than 26 tonnes by 2040 at the latest. There was also a commitment on legisla- tion to demand all private and workplace chargepoints are smart, and a pledge from Ofgem to deliver a regulatory EV strategy by the end of the year. What has happened The Environment Agency (EA) published its annual scorecard for water and sewer- age companies in July, showing plenty for the sector to be proud of. Serious pollution incidents dropped to their lowest level and five companies achieved the EA's top rating. However, the Environmental Perfor- mance Assessments came out in the same week that Southern Water was handed the largest ever fine from the EA (see Review, p6), meaning the headlines were domi- nated by the performance of the past not the present. The EA stressed that while progress had been made, companies need to redou- ble efforts to reach zero serious pollution Starting gun fired on ED2 Water companies told to redouble efforts to reach zero serious pollution incidents Net zero transition will fall heavily on DNOs Accelerating to a net-zero future ensuring the UK meets its net zero target while delivering cleaner air and benefits to consumers, communities and the economy. What we need now from government is the policies to deliver all this – and to make sure that we can all benefit from the future green economy." What this means The decarbonisation of transport is per- haps the clearest and least contentious of the myriad strands of net zero. While ques- tions remain about how exactly HGVs will be decarbonised, electrification is the uncon- tested large-scale solution for cars and vans. The task now is "simply" to get on with it. The government's strategy helps to do that by matching the ambition with some much- needed clarity. However, there are still significant unknowns and many would have wanted What they said Frank Mitchell, CEO, SP Energy Networks: "Our network has served us well over the past 50 years. Now is the time to invest so it stands ready to continue that service in a truly decarbonised future." John Spurgeon, head of regulation, Energy Networks Association: "Working with a flexible regulator, the industry is already delivering an accelerated £300 mil- lion investment in green recovery, targeting local grid upgrades across over 200 sites over the next two years. RIIO-ED2 must provide a framework in which investment like this can be brought forward, delivering economic and societal benefits for all and at pace." Pollution incidents fall but concerns remain for EA The government and Ofgem will also publish a joint policy statement on maximis- ing the opportunity for flexibility from EVs, while protecting the grid and consumers, this year. What they said Grant Shapps, transport secretary: "The transport decarbonisation plan is just the start – we will need continued efforts and collaboration to deliver its ambitious com- mitments, which will ultimately create sus- tainable economic growth through healthier communities as we build back greener." Emma Pinchbeck, chief executive, Energy UK: "Decarbonising transport is crucial to incidents. Chair Emma Howard Boyd wasp- ishly added that "there remains a tendency to reach for excuses rather than grasp the nettle".

• Cover