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Policy & Regulation Political Agenda Mathew Beech "Early retirement for the Environment Agency chair?" Owen Paterson has once again had a difficult week. Not only did the weather fail to give him – and the already saturated country – a break, but he had an urgent operation for a detached retina. This meant he could not chair the latest in a long line of Cobra meetings, allowing communities secretary Eric Pickles to wade into the debate. He apologised for the government relying on the Environment Agency's advice, saying he thought "we were working with experts". Smith – although this is likely to take place once the waters have finally receded, and Smith is due to step down later this year. As Somerset remains under- water, the Tory heartlands of Berkshire and Surrey are under threat as the Thames bursts its banks. Cameron and the Conservatives will be keen to be seen to be taking action in order to keep their core voters happy, but also to quieten Labour, who blame the PM for cutting the flood protection budget. Rumours of a ri between Paterson and Pickles were offi- cially denied, with both saying they are "working closely" on the response to the crisis. The blame game, started by Pickles' attack on the quality of information provided by the beleaguered Environment Agency, went on as the prime minister's official spokesman said he "asso- ciates himself entirely" with the apology made by Pickles. David Cameron has already committed "everything that is possible" will be done to help those suffering from the floods and to prevent it happening again, but he refused to rule out sacking the chair of the Environment Agency, Lord 18 | 14th - 20th February 2014 | utILIty WeeK This week Yeo calls for DNOs to improve storm policy tim yeo writes to the energy secretary with a number of recommendations after eCCC inquiry The "complacent" distribu- tion network operators (DNOs) must commit to introduce an emergency 999-style number for customers to call in the event of a power cut, according to the chair of the Energy and Climate Change Committee (ECCC). Tim Yeo wrote to energy secretary Ed Davey with a number of recommendations aer the ECCC inquiry into DNOs found there had been an "unacceptable" response to the storms in December. Yeo called for the DNOs and the Energy Networks Association (ENA) to commit to introduce the emergency number and to set a timetable for its implementation before the end of the year. He also said the DNOs should reduce the time a customer must be off supply before becoming eligible for compensation from 24 or 48 hours (depending on the severity of the weather) to 18 or 36 hours, respectively. The final recommendation that Yeo called for was an increase in the "grossly inadequate" compensation levels. Ofgem's RIIO-ED1 price control proposes a minimum payment under severe weather conditions of £35 for domestic and non-domestic customers, plus an addi- tional £35 for each subsequent 12 hours, up to a cap of £300 per customer. Yeo would like the statutory standard to follow Western Power Distribution's RIIO-ED1 proposed compensation levels of £75 per customer, with £70 for each further 12 hours without power up to a cap of £600. Yeo also invited Davey to consider whether financial penalties should be imposed by Ofgem on firms that fail to restore power within a stated timeframe. MB energy Suppliers criticised for slow smart pace Ofgem has attacked power and gas suppliers and distributors for their "lack of co-ordination and pace" in bringing on new charging arrangements needed if consumers are to benefit fully from smart metering. The regulator has urged the power industry to up the rate of progress in its deliberations to introduce half hourly settlement for customers on monthly, non- half hourly metering. Ofgem's interim markets chief Rachel Fletcher wrote in an open letter that were the industry to continue to fail to make satisfac- tory progress, "we have tools available to direct industry to take action, where they have failed to do so or to act in the consumer's interest". She added: "In light of the lack of co-ordination between industry parties, we are con- sidering whether new licence conditions or other measures, including a Significant Code Review, are necessary to ensure licence holders facilitate the realisation of the long-term benefits of smart metering." eLeCtrICIty Hinkley C state aid answer by year end Europe aims to rule on state aid for Hinkley Point C by the end of the year, according to competi- tion commissioner Joaquin Almunia. The European Commission raised substantial challenges to the UK government's plans to subsidise EDF Energy's new nuclear plant in a letter pub- lished last month. It questioned why Hinkley Point needed support, includ- ing a guaranteed power price of £92.50/MWh and construction guarantees, when other nuclear plants are being built in France and Finland without support. energy SSE avoids Ofgem Cert investigation SSE has escaped an investigation by Ofgem into a "technical non- compliance" of the Carbon Emis- sions Reduction Target (Cert). In the initial report in May 2013, the supplier was found to have fallen short of its prior- ity group (99.7 per cent), super priority group (73.8 per cent) and one licence of its insulation obligation (99.83 per cent). SSE was slow in validating its work with Department of Work and Pensions (DWP) data and fell short of its obligation target. The new evidence, produced aer the "data wash" against the DWP database, revealed that SSE met its super priority group and priority group obligations, but still fell short against one licence of its insulation obligation. 'Unacceptable': DNOs' response to the storms