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UTILITY Week 6th June

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14 | 6th - 12th June 2014 | utILItY WeeK Policy & Regulation This week Europe energy 'needs internal market' Davey says a functioning internal energy market would 'maximise the use of home-grown energy' Energy secretary Ed Davey has once again pushed for the com- pletion of the internal energy market, saying it would become "the solid backbone of Europe's energy security". Speaking at the Eurelectric conference in London this week, Davey said a functioning internal energy market would "maximise the use of home-grown European energy". He said this would boost the continent's energy security and reduce the dependence on Russian gas or one single energy source. Davey also pushed for a 40 per cent carbon reduction target, saying: "It makes policy sense and political sense to embed a robust energy security strategy within an ambitious flexible EU 2030 policy framework." Johannes Teyssen, group chief executive at Eon and president of Eurelectric, said: "Despite threats to energy security, this has not changed the reasoning behind our request to the European Council to opt for a single bind- ing reduction target." Research conducted by Accenture for Eurelectric stated that res haping Europe's energy system, including establishing the internal energy market, could cut the continent's energy costs by €81 billion a year by 2030. Energy UK chief executive Angela Knight used the conference to call for changes to European energy policy. She said in the aermath of the European elections there was "an opportunity in the energy industry to get fact-based, logic-based, properly costed and sensible EU policy-making… to allow a transition to a low-carbon future in an affordable way". MB Water Defra delays Suds implementation Defra has delayed the compul- sory legislation for the implemen- tation of sustainable drainage systems (Suds) in England and Wales. Suds are seen as an environ- mentally friendly way of reduc- ing the risk of flash flooding, which is an increasing concern following the UK's wettest winter on record. As opposed to con- crete, they replicate natural sys- tems to drain away surface water run-off, slowly releasing water back into the environment. Stakeholders involved in consultations with Defra have been sent a letter ruling that local authority Suds Approving Bodies (SABs) will not be able to approve Suds schemes on new developments from October 2014, as originally planned. Instead, Defra said it will make a statement in the summer to set out in "greater detail" its plans for Suds implementation. eLectrIcItY RWE attacks Ofgem on network charges RWE has accused Ofgem of breaching its statutory obligations with network charging plans that will push up customer bills. The energy company made the extraordinary attack in a last- ditch attempt to block changes to the balance of transmission charges across the country. Ofgem admits the propos- als developed under "Project Transmit" are expected to cost consumers between £65 million and £1 billion out to 2030. That will add up to 75p to the average annual household bill. The regulator said the cost would be outweighed by "non- monetised" sustainability ben- efits, namely boosting the UK's chances of meeting its renewa- bles target and carbon targets. RWE said the measures conflicted with Ofgem's duty to protect customers' interests. Gas Trespass law change to help frackers Individuals will not be able to use trespassing law to block fracking plans, under proposals announced on Friday (23 May) as a British Geological Survey report revealed major reserves of shale oil under southern England. In a move that will also ben- efit geothermal energy projects, the government plans to limit the rights of property owners to appeal and delay drilling more than 300m beneath their homes. To sweeten the deal, there will be a "voluntary community pay- ment" of £20,000 for each lateral well, on top of the £100,000 already promised by the industry for each test well. Davey: also pushed for a carbon reduction target Political Agenda Mathew Beech "Eurosceptics would see countries fracked to death" As Nick Clegg and Vince Cable share a pint together, trying to repair their relationship aer the Lib Dems' latest battering, the fallout from the European elec- tions continues. Ignoring the fact his party was (almost) wiped out, energy secretary Ed Davey has once again pushed the pro-EU line. This time, Davey is insistent that the internal energy market is the solution to all the EU's energy woes. Plus any extra woes president Putin decides to create. If the sceptics have their way, the answer to energy security will be individual countries fracked to death. If Davey and the pro-EU, pro-renewables lobby have their way, a European super-grid will link us all to solar and wind- farms to keep the lights on (with help from gas back-up). The reality will probably lie somewhere between. So maybe Davey and Ukip's Nigel Farage should go to the pub to reconcile their differences. Energy will be more secure and we'll all move to low-carbon economies. Whether this will translate into any action in the corridors of power in Brussels, we are yet to find out. But those corridors of power are set to be slightly less crowded as the anti-EU par- ties did well across the board. Just think, the Greek equivalent of Nigel Farage may too have been in a pub celebrating. But the key question now, and one Davey is trying to answer before the Eurosceptic, climate change sceptics – no, not the Tories – try to slow things down even further, is what will the 2030 climate package look like?

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