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UTILITY WEEK | 18Th - 24Th JULY 2014 | 13 Policy & Regulation This week New faces at Decc and Defra in reshuffle First major cabinet reshuffle since the last election sees major changes in Tory top jobs Prime minister David Cameron has brought new faces into both the Department of Energy and Climate Change (Decc) and the Department for Environment, Food, and Rural Affairs (Defra) as part of a comprehensive cabi- net and ministerial reshuffle. Greg Barker resigned from his role as climate change minister as he prepares to leave Parlia- ment next year, while Michael Fallon has been promoted to defence secretary. Fallon's role as energy minister, as well as his Portsmouth and business briefs, have been picked up by chancellor George Osborne's former economic adviser Matthew Hancock. Hastings and Rye MP Amber Rudd, a former parlia- mentary private secretary to the chancellor, was named as the new climate change minister. Owen Paterson was one of the casualties of the reshuffle. He was sacked as the environment secretary, to be replaced by Liz Truss. The South West Norfolk MP has previously spoken out against large-scale wind- farms, as well as coming out against using agricultural land for biomass crops. Energy secretary Ed Davey, who is expected to remain in post aer the Lib Dem reshuffle (planned for the autumn), welcomed the new arrivals to Decc. He said Hancock and Rudd would be "enormous assets". Davey also thanked Barker and Fallon for their "immense contributions to turning around the legacy of energy under-investment we inherited". MB Pan-UTILITY Separate Scotland 'should set up multi- utility regulator' A multi-utility regulator for energy and water should be established in Scotland in the event of a "yes" vote in Septem- ber's independence referendum, according to a report published by the Scottish Government. The report, by the Expert Commission on Energy Regula- tion, said: "A multi-utility regu- lator covering electricity, gas and water is an approach adopted by many smaller nations. We think it makes sense in Scotland." It outlines the case for a single wholesale electricity and gas mar- ket across Scotland and the rest of Great Britain, and a collaborative approach on systems operators. The report said: "Proposals to divide the single system [whole- sale market] physically into two separate operating systems would incur significant cost, but deliver no material benefit. "We found no support in the industry, regulators or consumer bodies for such a division." EnvIronmEnT CCC: better carbon policies are needed Improved and strengthened poli- cies are needed from government to ensure future carbon budgets are met, according to the Com- mittee on Climate Change (CCC). In a progress report to Parlia- ment, the CCC stated that under the current rate of progress "future budgets will not be met", with emissions being reduced by 21 to 23 per cent between 2013 and 2025, rather than the required 31 per cent. To help the UK meet its future carbon budgets, the CCC recom- mended an increased ambition for the residential energy effi- ciency sector, and for commer- cial energy efficiency policies to be simplified. EmIssIons 'Decarbonise heavy industry with CCS' The Labour party has pledged a string of reforms to get the car- bon capture and storage indus- try "back on track", including the use of CCS in decarbonising emissions-intensive industries. In a new position paper, shadow energy minister Tom Greatrex said the industrial applications of CCS technology have been "chronically ignored" by the incumbent government. "Whilst there is a clear potential to fit CCS to coal and gas power stations, this technol- ogy also offers perhaps the only means of decarbonising some of our key industrial processes for which the consumption of fossil fuels is essential," Greatrex said. "We can derive electricity from the wind, but we will never make steel from sunshine," he added. Barker: out Fallon: up Political Agenda Mathew Beech "Osborne has got insiders in Decc to help direct policy" In the female-friendly reshuffle, David Cameron gave the chop to the male, pale and stale brigade of middle-aged men. At Decc, out went Greg Barker and Michael Fallon. Over at Defra, Owen Paterson paid the price for his calamitous handling of the badger cull, and the winter floods, and has been replaced by Liz Truss. With Amber Rudd and Matthew Hancock named as the new climate change and energy ministers, George Osborne providing the shattered remains of the glass ceiling. Cynics will point out that with nine months until the general election, this is nothing more than a PR stunt. Either way, the chancellor will be happy with the outcome. Osborne has now got two insiders within Decc to help direct policy the way he wants, and to keep Ed Davey on a tight leash, should the energy secretary try to press ahead with anything a bit too Lib Dem-ish. has now tightened his grip on Decc; Rudd is the chancellor's former parliamentary private secretary, while Hancock was the then shadow chancellor's economic adviser between 2005 and 2010. The Treasury is keen to keep Decc on a tight rein, especially as the contracts for difference regime – already criticised by the National Audit Office for blowing most of the Levy Con- trol Framework budget – gets underway. Cameron's proponents will claim the reshuffle has been a step forward and a demonstra- tion of how modern the Conserv- atives are, showing equality and