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4 | 16th - 22nd January 2015 | utILIty WEEK National media Investment needed in UK energy networks huge investment is needed in the uK's energy networks to meet future requirements, a department of Energy and Climate Change report has said. £41.6bn total investment needed in uK's energy networks by 2020 £34bn Investment needed in uK electricity networks by 2020 £7.6bn Investment needed in uK gas networks by 2020 £12bn Estimated reduction in amount needed for distribution reinforcement by 2050 because of smart grids EU energy chief heads to Moscow for talks The European Commission backs Bulgaria's plans to build a gas hub to help it compensate for the loss of Russia's South Stream pipeline, and will raise the issue at talks on energy security in Moscow on Wednesday, the EU's energy boss said. Gazprom's announcement in December that it was scrapping the South Stream project to pump natu- ral gas to the European Union was a particular blow to Bulgaria, which relies heavily on Russian gas. Reuters, 12 January China extends lead as top green backer China last year extended its lead over the US as the world's largest investor in renewable energy, with continued growth in its solar and wind power industries, according to research company Bloomberg New Energy Finance. China's investment in "clean" energy, including renewables and efficiency improvements, rose 32 per cent to a record $89.5 billion, with about three-quarters of that going into wind and solar power. The US was in second place with 8 per cent growth to $51.8 billion, the largest amount since 2012. Financial Times, 9 January Opposition to plan to divert water for mine Mackay Conservation Group says a proposal to feed what would be Australia's largest coal mine with water that has been diverted from two north Queensland rivers will have a "hugely negative impact" and won't prevent depletion of groundwater by mines, as claimed. The company Galilee Water is planning to divert up to 700,000 megalitres of water from the Cam- paspe and Cape rivers via channels to huge water storage "cells" to supply Galilee basin. The Guardian, 12 January story by NUMbErs E on said on 13 January that it would cut its standard gas tariff by 3.5 per cent with immediate effect, making it the first big six energy supplier to act following cross-party political pressure to pass on fall- ing wholesale costs. At the same time as it cuts £24 a year from its standard gas tariff, Eon will launch a one-year fixed-rate product, which it said was the lowest on the market, despite political uncertainty fac- ing UK energy companies. The sector is already under- going a full investigation by the Competition and Markets Authority, but has emerged as a key political focal point in the run-up to May's general election. Late last week, chancellor George Osborne said it was "vital" that the historic lows on the global oil markets be passed on to consumers, saying the Treasury would investigate whether action should be taken against energy companies. The warning was echoed by Labour party leader Ed Mili- band, who called for fast-track legislation to enable Ofgem to force suppliers to cut their bills. Following Labour's 2013 pledge to freeze prices if elected, energy companies are under- stood to be wary about dropping prices to a level which may prove unsustainable. But Eon said it was willing to take the risk."Given the pos- sibility of a price freeze, we are undoubtedly taking a risk, but we always put our customers first," said Eon UK chief execu- tive Tony Cocker in a statement. "We have made this decision knowing that our ability to recover costs, should the market outlook change in the months or years ahead, may be limited, but we urge all political parties to recognise the realities of the energy industry and help us to continue to do the best for all of our customers," he added. Analysts at RBC Capital said other companies that were not fully hedged should be able to follow suit. The exception could prove to be SSE, which analysts said was "unlikely" to move given its fully hedged position and fixed-tariff offerings that were designed to mitigate the risk of a Labour price freeze. JA See analysis, p22 Eon first to share savings by cutting its gas tariff $42 per barrel Goldman Sachs has lowered its three-month forecast for Brent crude "Our customers have been tremendous. They had to endure appalling disruption to their electricity supply" SSE's director of engineering Alan Broadbent on widespread Scottish power outages after last week's storm Seven days...