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4 | 4th - 10th July 2014 | utIlIty WEEK National media Progress of renewables According to statistics from the Department of Energy and Climate Change, renewable energy grew in 2013. 5.2% final energy consumption provided by renewable energy 52% the increase in renewable electricity generation via offshore wind 11% the fall in hydro generation due to lower rainfall 27% the increase in renewable electricity generation capacity 15% of renewable sources were used to generate heat during 2013 UK and Germany break solar records Germany gener- ated more than half of its elec- tricity demand from solar for the first time on 9 June, and the UK nearly doubled its 2013 peak solar power output on the solstice weekend of 21/22 June. According to UK trade body the Solar Trade Association, the total UK installed solar capacity generated from homes, buildings and solar farms is now about 4.7GW, compared with 2.7GW in July last year. The Guardian Energy companies hit by cyber attack The industrial control systems of hundreds of European and US energy companies have been infected by a sophisticated cyber weapon operated by a state-backed group with apparent ties to Russia, according to a leading US online security group. The powerful piece of malware known as "Energetic Bear" allows its operators to moni- tor energy consumption in real time, or to cripple physical systems such as wind turbines, gas pipelines and power plants at will. Financial Times New York towns can prohibit fracking Opponents of fracking celebrated a major victory over the oil and gas industry on 30 June aer the highest court in New York agreed that cities and towns can prohibit drilling within their boundaries. In a 5-2 ruling, the New York state court of appeals affirmed previous court decisions that two towns in New York – Dryden and Middlefield – had the authority to use zoning ordinances to control land use, effectively banning fracking. The Guardian story by NUMbErs W ater-only companies (Wocs) were set for a showdown with the regulator over investor returns this week, as they bid for a higher cost of capital than Ofwat's guidance of 3.85 per cent. All ten water and sewerage companies have now accepted the lower cost of capital, result- ing in savings on customer bills – for example, 2.3 per cent over the period for United Utilities customers, and 1.5 per cent for Severn Trent customers. However, a number of the smaller, water-only companies argue they should be allowed a higher cost of capital. Tradition- ally, the Wocs have benefited from a small company premium which made allowance for the higher cost of equity for smaller companies. Sutton & East Surrey Water (pictured) has proposed a weighted average cost of capital (Wacc) of 4.75 per cent, which would result in customer bills remaining stable. It has com- missioned independent research which it said proves smaller companies need higher returns to remain financeable. The UK's largest water company, Thames Water, also challenged the cost of capital. While it accepted a vanilla Wacc of 3.85 per cent, it said it could only make this work by holding back £108 million of savings made elsewhere. The company said: "Our overall view is that on a standalone basis the Wacc is too low and, over time, could be expected to have an adverse effect on the attractiveness of the industry for investors and put long-term investment at risk." Thames has proposed price rises of 2 per cent per year in real terms over the period to cover the cost of the Thames Tideway Tunnel. Ofwat will issue its dra determinations on the com- pany's business plans on 29 August. EB Seven days... Wocs bid for a higher cost of capital from Ofwat 99.91% Proportion of drinking water samples that met quality standards in 2013, according to Scottish Water's annual report "Only the broad shoulders of the United Kingdom can attract investment in new energy sources" Energy minister Michael Fallon comments on the findings that there is a "modest" amount of shale gas and oil in the Midland Valley in Scotland