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UTILITY WEEK | 14Th - 20Th NovEmbEr 2014 | 13 Policy & Regulation This week Decc mulls national charge for networks Single transmission and distribution charge could benefit those furthest from power plants The government is set to con- sider whether a single, national electricity transmission and distribution charge should be introduced. Both the energy secretary and the energy minister told the House of Commons at topical questions that the Department of Energy and Climate Change (Decc) was set to examine such a charge. Energy secretary Ed Davey said setting a single national transmission and distribution price was some- thing the government "should look at". He then warned MPs "it is not quite that simple" because of varying regional charges, which relate to the extra costs in some parts of the country because of geographical differences. Davey added: "If we were to socialise the costs across the UK, other people would be paying more." Energy minister Matthew Hancock, responding to a question from Labour backbencher Nia Griffith, said the gap between distribution costs "has shrunk" under this government. He added: "Whether we go to a single posi- tion across the whole country is worth considering." National Grid's UK executive director John Pettiegrew told Utility Week that the company would be willing to work with government and Ofgem on what a different charging base could look like. He added that there were "two sides to the story" because areas close to genera- tion sources benefited from their proximity but would lose that benefit if a single cost were charged. "You could end up with people in one part of the country subsidising those in another," he said. MB ELEcTrIcITY High Court says cuts in solar aid are legal The High Court has ruled that government cuts to the subsidies for large solar farms are legal. A judicial review, called for by four solar companies, has ruled in favour of the changes to close the Renewable Obligation (RO) support scheme for solar projects over 5MW. The review was requested by Lark Energy, Orta Solar Farms, Solarcentury and TGC Renewa- bles in May aer the Department of Energy and Climate Change (Decc) announced it was closing the RO regime to projects over 5MW from 1 April 2015, forcing developers to compete for con- tracts for difference (CfDs). The solar companies said: "In court the judge agreed that Decc's action had a retrospective impact, but ruled that it was fair for Decc to set a qualification deadline identical to the very first day of the consultation period, causing wasted capex for some developers. "This ruling may have seri- ous implications for the wider energy industry." WaTEr One in 20 beaches 'will fail new EU test' One in 20 British beaches will fail tougher EU cleanliness tests, according to government figures. Data from the Department for Environment, Food and Rural Affairs (Defra) shows that only 94.5 per cent of beaches are set to pass more stringent European Bathing Water Directive tests, which come into force next year. The figure is down from a 99.5 per cent pass rate for beaches around the UK meeting lower standard of the current Bathing Water Directive test. More than 20 beaches are not projected to make the grade next year, and will be marked as "poor" unless water quality improves. ENErgY Energy links must be commercially funded The government will not subsidise the development of interconnectors, the Energy and Climate Change Committee was told last week. Energy minister Matthew Hancock told MPs the govern- ment would not fund any inter- connectors and that they would have to be commercially funded. He told the committee: "Building interconnectors needs to be paid for so needs to be a decent commercial proposition for those going to pay for them." Interconnectors provide a return when there is a price dif- ferential between the interlinked markets, energy flows across the link, and the operator is paid for transporting the energy. Socialising costs would some pay more Political Agenda Mathew Beech "Freezing frozen prices isn't as exciting as stopping rises" Ed Miliband's headline energy policy has somewhat dropped off the agenda. At last week's Decc orals, only one opposi- tion MP – Livingstone's Graeme Morrice – mentioned Labour's plan to freeze energy prices should it win the election. This shying away from the price pledge came on the same day rumours surfaced that restless backbench Labour MPs want Miliband to depart. This prompted the party's top brass to defend their unpopular l Labour is unsure about how it will implement the price freeze. Keeping quiet lets it work out how to do it. l The party believes it has a Miliband problem and is dis- tancing itself from anything linked with him. All of this dents Miliband's already battered credibility and reduces Labour's chance of winning a majority. The coalition parties will want the opposition's infighting to continue all the way until May. leader, with general election co-ordinator Douglas Alexan- der urging his party to "pull together", warning that "divided parties lose elections". But the omission of the oppo- sition's flagship energy policy from Decc orals with only six months until voters head to the ballot boxes must be worrying. The policy was, and is, popu- lar with some of the electorate, so backing away from it is likely to mean one of three things: l The price freeze implemented by the suppliers has stolen Labour's thunder. Freezing frozen prices isn't nearly as exciting as stopping bills from rising rapidly.