Utility Week

4 | 28th March - 3rd april 2014 | UtilitY WEEK National media New low for Green Deal the Green deal has seen its slowest increase in the number of plans agreed, signed or installed since May last year (p27) 33 the number of Green deal plans that were agreed, signed or installed in February 163,096 the total number of Green deal assessments so far £2.8m had been claimed back via Green deal cashback vouchers by the end of February 517,000 the amount of homes decc says are warmer due to the Green deal and Eco Thames seeks backers for £4bn super sewer Thames Water has started the hunt for international investors to fund construction of its controversial £4 billion super sewer in London. Britain's biggest water firm will advertise for backers in May in a process led by investment bank UBS. Thames is setting up a company that will own the tunnel, whose investors will be repaid with interest from increased water bills paid by Thames' customers. The Independent Competition probe to 'increase blackout risk' The risk of blackouts will be in- creased by a two-year probe into the energy market that will deter com- panies from building power plants, a leading analyst has warned. Ofgem is this week expected to announce it is referring the market for a full Competition and Markets Authority (CMA) investigation, amid calls for the big six to be broken up. Peter Atherton, energy expert at Liberum Capital, said a full CMA investigation would take at least two years, during which time it was "pretty inconceivable" that compa- nies would invest in new plants. The Telegraph England needs Scottish power to keep lights on England's lights would go out without Scotland's large and grow- ing supply of renewable energy, according to Scotland's energy minister. Fergus Ewing hit back aŠer UK energy secretary Ed Davey said independence for Scotland would force up energy bills for Scottish households. "England does require Scotland's electricity to keep the lights on," he said. The Guardian story by NUMbErs Incentives to build gas-fired power stations were confirmed by government last week, along- side a Budget that favoured coal generation. The Department of Energy and Climate Change (Decc) unveiled the final details of the capacity market as the Treas- ury announced a freeze on the carbon floor price. The freeze boosts the case for keeping old coal power stations open, poten- tially at the expense of invest- ment in gas and low-carbon generation (see p10). However, the capacity market design provides some reassur- ance to would-be investors in new gas plant. Market partici- pants secure payments for having capacity available. That guar- antees some revenue even if, as expected, they increasingly run only part-time to back up inter- mittent renewable generation. Gas power developers will be able to bid for capacity pay- ments in December 2014 for delivery by winter 2018. The first auction date is subject to the Electricity Market Reform pack- age receiving state aid approval from Brussels. Participants will be eligible for 15-year capacity contracts, increased from ten years under earlier proposals. "This will provide sufficient certainty to unlock investment in new gas plant," Decc said. Existing capacity will be eligible for one-year agreements to stay open, or three years if the plant needs significant refurbishment. That could apply to coal generators upgrading to meet European legislation. Auction payments will be capped at £75/kW "to protect consumers from excessive costs". MD Seven days... "A multi-million pound bung to coal plants" Greenpeace's chief scientist Dr Doug Parr and renewables groups line up against chancellor George Osborne's Budget, p10 Government reveals gas power incentives the value of the centrica-led takeover of Bord Gais €1.1 billion "The Water Bill is a waste of time" Waterwise managing director Jacob Tompkins speaks his mind at a Westminster Energy, Environment & Transport Forum seminar

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