Utility Week

UTILITY Week 15th May 2015

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

Issue link: https://fhpublishing.uberflip.com/i/510855

Contents of this Issue

Navigation

Page 6 of 31

UTILITY WEEK | 15TH - 21ST MAY 2015 | 7 E L E CT I O N FA L LO U T Utility Week Lobby produced in partnership with: "This will be a different government, it's not a coalition… When you vote for something you get it." David Cameron addresses his new cabinet The fallout MPs gone: Ed Davey, Lib Dem energy secretary Tom Greatrex, Labour shadow energy minister Dan Rogerson, Lib Dem water minister Danny Alexander, Lib Dem chief secretary to the treasury Ed Balls, Labour shadow chancellor ECCC members (at end of 2010-15 parliament): Tim Yeo, chair (Conservative) – not selected as party candidate Dan Byles (Conservative) – stood down Ian Lavery (Labour) – re-elected Phillip Lee (Conservative) – re-elected Peter Lilley (Conservative) – re-elected Albert Owen (Labour) – re-elected Christopher Pincher (Conservative) – re-elected John Robertson (Labour) – lost seat to SNP Sir Robert Smith (Lib Dem) – lost seat to SNP Graham Stringer (Labour) – re-elected Alan Whitehead (Labour) – re-elected Efra committee members (at end of 2010-15 parliament): Anne McIntosh, chair (Conservative) – not selected as party candidate Richard Drax (Conservative) – re-elected Jim Fitzpatrick (Labour) – re-elected Mary Glindon (Labour) – re-elected Emma Lewell-Buck (Labour) – re-elected Iain McKenzie (Labour) – lost to SNP Sheryll Murray (Conservative) – re-elected Neil Parish (Conservative) – re-elected Margaret Ritchie (Social Democratic & Labour Party) – re-elected Mark Spencer (Conservative) – re-elected Roger Williams (Lib Dem) – lost to Conservatives what was a fractious relationship, at least when the coalition's first energy secretary Chris Huhne was in post. He adds that the outcome of the Competi- tion and Markets Authority inquiry into the energy market, which is due to publish its initial findings by next month, could result in the Treasury taking the lead in introduc- ing the changes and pursuing "more radical options to reform the market". One of the Tories' manifesto pledges was to "halt the spread" of onshore wind by scrapping new subsidies for the technology. And Leadsom, apart from bringing Decc and Treasury closer together, is also an opponent of onshore wind. The new energy minister wrote in 2011 for Conservative Home that "the benefits of onshore wind have been hugely exagger- ated" and that the government "needs to look much more closely at other sources of renewable energy". Over at the Department for Environment, Food and Rural Affairs, incumbent secre- tary of state Liz Truss keeps the top job. She is another who has voiced her displeasure at large-scale solar ("a blight on the land- scape") and her support for the development of shale gas. She continues to be supported by the reappointed Defra minister George Eustice. One significant change within govern- ment has been the removal of Eric Pickles as communities secretary. He has been replaced by one-time shadow energy secretary Greg Clark, who was overlooked for the top job in 2010 as the Lib Dems took ownership of Decc. Pickles was very much seen as anti- onshore wind – blocking the planning appli- cations of two-thirds of proposed onshore windfarms. Clark is seen as more open to the possibility of new onshore wind, provided that "communities who participate in renew- able energy projects share in the rewards that comes from doing their bit". In their manifesto the Conservatives pledged to "cut carbon emissions as cheaply as possible" and to save consumers' money on their energy bills. Their success in addressing these two prongs of the energy trilemma, as well securing supply, will be a large factor in whether the new, all-Conserv- ative government is deemed a success or not. Energy policy was always seen as a Liberal Democrat respon- sibility. Climate change and the low-carbon agenda was the cen- trepiece of the coalition's energy policy. This is unlikely to change with the promotion of Amber Rudd to energy secretary. She is regarded as a moderate and a known supporter of climate change science. Changes may occur at the margins in areas such as onshore wind, where the Con- servatives are less enthusiastic. While symbolic, it's unlikely to The energy minister merry-go-round Viewpoint Scott Flavell have a major impact on renew- able energy targets, with most of the large developments occur- ring offshore. In this area we expect to see business as usual. Unconventional oil and gas development could receive a boost. The Conservatives are supporters of shale. However, unconventional oil and gas will only ever play a small part in the UK's energy mix. HM Treasury is likely to play a stronger role in energy policy. Rudd will be close to the chancellor and so we should expect a closer working relation- ship between Decc and the Treasury on energy policy, rather than the strained relations seen under the coalition. One area where the Treasury may have a stronger focus is competition in the wholesale and retail markets. To a large extent this will depend on the outcome of the Competition and Markets Authority (CMA) review. If the CMA concludes there are deficiencies in wholesale and retail competition, then the Treasury may be inclined to pursue more radical options to reform the market. Scott Flavell is head of energy and utilities at Sia Partners "Changes may occur at the margins in areas such as onshore wind" Andrea Leadsom 2015-present Mike O'Brien 2008-09 Joan Ruddock 2009-10 Charles Hendry 2010-12 John Hayes 2012-13 Michael Fallon 2013-14 Matthew Hancock 2014-15

Articles in this issue

Archives of this issue

view archives of Utility Week - UTILITY Week 15th May 2015