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Stock watch 400 350 300 250 DRAX SHARE PRICE, JUN - SEP 2015 340 320 300 280 260 DRAX SHARE PRICE, 1 AUG - 1 SEP 2015 Drax's share price plunged by 17 per cent in August, falling from a high of 325.10 pence on 13 August to a low of 270.40p on 24 August. Analysts said they "do not see any particularly good reason for this" but that it could be the result of some "short-term profit taking" from the firm's recent recovery. Drax previously experienced a hey share price fall of 28 per cent to 254p/share when the government removed the climate change levy exemption for renewables on 7 July. This week Bazalgette to deliver tunnel at lower cost 2.497 per cent cost of capital figure reached following a new approach by regulator Ofwat Bazalgette Tunnel will deliver the Thames Tideway Tunnel project at a lower cost of capital than expected as part of its Ofwat-mandated licence to build the £4.2 billion super sewer. The 2.497 per cent cost of capital figure was reached fol- lowing a new approach by the regulator, which set the amount through competitive tendering. This market testing of the cost of capital revealed "the efficient cost of managing this project" and has resulted in "significant savings", said Ofwat. Previous worst-case scenarios for the impact of the tunnel on customer bills was up to £80 per year, but this is now expected to be around £20 to £25 per year by the mid-2020s as a result of the lower than expected cost of capital. Ofwat chief executive Cathryn Ross said: "Once the tunnel had been confirmed as the best solution to the problem of sewage in the Thames, our job at Ofwat was to work with government and the project to make sure that Thames Water's customers got a fair deal. "There's a long way to go, but our work has provided good foundations to make sure customers are protected." She added: "Going out for competition on the con- struction and financing costs of the tunnel has resulted in significant savings, and we are keen to explore whether this could work for other big projects in the water sector." The cost of capital also means Thames Water will be able to keep its bills at £370 per year before inflation until 2020. MB ELECTRICITY Wind transmission licence awarded Ofgem has awarded the licence to own and operate West of Dud- don Sands offshore windfarm's £269 million transmission assets to WoDS Transmission, bringing the second round of its offshore regime to a close. WoDS Transmission is owned by Macquarie Corporate Hold- ings Pty and 3i Infrastructure. It will own and operate the link for the next 20 years. WoDS's offshore windfarm, located in the East Irish Sea 14km off the Cumbrian coast, comprises 108 turbines with an installed capacity of 389MW. This is the fourth and final project to reach financial close in the second tender round of the project. The second round has delivered £1.4 billion of transmission assets, connecting 1.9GW of offshore wind. The decision brings the total new transmission investment delivered by the Offshore Trans- mission Owner (Oo) regime to more than £2.5 billion. It also brings the number of Oos to 13. ELECTRICITY ScotPower confirms Longannet closure Scottish Power has confirmed that its 2.4GW Longannet coal- fired power plant will shut on 31 March next year, saying it is "uneconomic" to run a thermal power plant in Scotland where transmission charges reach as high as £40 million per year. The generator said in March this year that it would be forced to shut down the plant aer 46 years of service aer National Grid opted to award a crucial contract to rival generator SSE. Without the contract, Lon- gannet is unable to turn a profit due to a combination of high carbon taxes and high transmis- sion charges, the company said. Scottish Power added that it will abandon plans to develop a gas-fired power plant at Cockenzie, citing the same economics "affecting all thermal plant in Scotland". WATER CMA extends Bristol Water price probe The Competition and Markets Authority (CMA) will extend its six-month investigation into Ofwat's price controls for Bristol Water, according to Ofwat. The CMA's probe into Bristol Water's Ofwat-mandated controls was due to conclude on 3 Sep- tember, but the regulator has agreed to a two-month extension. Ofwat said that having received and considered repre- sentations from the CMA, it is "satisfied" that there are "special reasons" why the report can- not be made within the period specified. 'Good foundations': work done by Ofwat UTILITY WEEK | 4TH - 10TH SEPTEMBER 2015 | 17 Finance & Investment Jun 2015 Jul 2015 Aug 2015 Sep 2015 4 Aug 11 Aug 18 Aug 25 Aug 1 Sep