Utility Week

Utility Week 18th April

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

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UTILITY WEEK | 18Th - 24Th AprIL 2014 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | Opinion Alex Tsimboykas, EUM Group 8 | Interview Tom Greatrex, shadow energy minister 12 Policy & Regulation 12 | News Tougher price control for NIE 13 | Analysis The renewable heat Incentive 14 | Market view Will the CMA clear the air? 15 | Market view The IpCC's latest assessment 18 Finance & Investment 18 | News Davey flags delay to new-build gas 19 | Market view The EU must act on emissions now 20 Operations & Assets 20 | High viz Southern Water's Chichester water treatment works 22 | Market view Off-site manufacturing 25 | Market view Water meters and flats 26 Customers 26 | News price freeze threat 'scares off' new entrants 27 | Market view Smart meter customer engagement 28 Markets & Trading 28 | News European Commission to make renewables compete 30 Community 30 | Subscriber focus Jennifer Webber, renewableUK 31 | Disconnector Eco change is less Robin Hood, more Sheriff of Nottingham In a blow to those generators awaiting the first capacity auction, energy secretary Ed Davey revealed last week that the government was expecting the auction to focus on existing capacity (that is, plants about to be mothballed or decommissioned). Those genera- tors, including several of the big six, with consented gas plants in the pipeline are le waiting for another year to find out whether or not it's economically viable to build them. The Department of Energy and Climate Change (Decc) has failed to provide a reason for this apparent policy U-turn, or an explanation for how it will have an impact on the capacity crunch expected mid-decade. It wasn't even announced: Davey slipped it out in a casual comment at a select committee hearing on the recent storms, and were it not for Utility Week's sharp-eared news team, the industry might be none the wiser. This muddle-headed and barely communicated policymaking has come to be the norm from Decc – but would Labour serve any better? Tom Greatrex reckons so in our interview on p8, but as the shadow minister admits, he's not an energy expert. Neither are his bosses, which is perhaps why they failed to foresee the extent to which the proposed price freeze (sorry, price cap) would put UK energy investment on ice. As we report on p26, potential market entrants are walking away directly because of the uncertainty created by Ed Miliband's proposed energy policy. Energy is a complex market, subject to a web of influences – economic, political, geophysical. Pull one strand and another twitches, creating unintended consequences. See our story on p4 for a case in point – Decc's Eco delay, designed to cut customer bills, has handed suppliers a £245 million windfall, according to an analy- sis by the Association for the Conservation of Energy. Less Robin Hood, more Sheriff of Nottingham. Politicians simply haven't got the expertise or the luxury of look- ing beyond the next election: they seem incapable of developing sensible, balanced, long-term energy policies, particularly with the mass media looking over their shoulders. Is it too much to hope that they will keep their mouths shut and their hands in their pockets as the CMA sets to work? Ellen Bennett, Editor ellen.bennett@fav-house.com GAS 18 | News Davey flags delay to new-build gas plant WATEr 20 | High viz Southern Water's Chichester works 21 | Pipe up phil Brown 22 | Market view Off-site manufacturing 25 | Market view Water meters and flats ELECTrICITY 12 | News Tougher price control for NI Electricity 26 | News price freeze threat 'scares off' new entrants ENErGY 8 | Interview Tom Greatrex, shadow energy minister 13 | Analysis The renewable heat Incentive 14 | Market view Will the CMA clear the air? 15 | Market view The IpCC's latest climate assessment 19 | Market view The EU must act on emissions now 27 | Market view Smart meter customer engagement 28 | News Commission to make renewables compete Knowledge worth keeping Visit the Downloads section of Utility Week's website for special reports and exclusive research commissioned for the utilities industry. http://www.utilityweek.co.uk/downloads

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