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UTILITY Week 18th September 2015

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UTILITY WEEK | 18TH - 24TH SEPTEMBER 2015 | 9 Policy & Regulation This week Corbyn win reignites state control debate Labour leader's left-wing agenda includes 'personal wish' to renationalise energy sector The rise of far-le Labour out- sider Jeremy Corbyn to become party leader is set to reignite the debate over government inter- vention in the energy industry. Corbyn's ten-point energy policy plan did not call for full renationalisation of the energy sector, but he said in interviews that this is his "personal wish". His campaign secured almost 60 per cent of the leadership vote, attracting wide support for his hard le policies, including a renationalisation of rail services. Former Labour MP and shadow energy minister Tom Greatrex told Utility Week: "Utilities should not dismiss the reasons why calls to renationalise are popular with many, and should be focusing relentlessly on demon- strating to customers a much improved approach." The huge popularity of Corbyn's rail renationalisa- tion policy, and his desire to see a similar change for the energy industry, may be far from becoming government policy but his views seem set to raise the profile of the debate surrounding greater government intervention. Included in his official energy policies are calls for the state to play a greater role in securing back-up gen- eration for the UK's constrained power market and stand as a guarantor of last resort for investment. He also wants "a fundamental shi" to reduce consumption and increase decentralised, community- owned low-carbon generation. And envisages a new role for Ofgem and National Grid. Tom Watson was elected deputy leader with over 50 per cent of the final round vote. JA WATER Market opening to be confirmed in 2017 The final decision on whether the non-household water retail market will open as scheduled in April 2017 will be made in "early 2017" according to the Depart- ment for Environment, Food and Rural Affairs (Defra). Gabrielle Edwards, Defra's deputy director for water reform, said at a Westminster Energy, Environment and Transport Forum last week the final go/ no-go decision would be made only a matter of months before the market is set to open. She said: "Realistically I would say the final decision is in early 2017 when we've been through the third stage of the assurance framework." Publicly, the water companies remain confident that the April 2017 deadline is achievable, but two senior figures from leading water companies have told Util- ity Week making the final go-live decision at that point would be "too late" and damage trust and confidence in the entire sector. See analysis, p12 ENERGY Offshore windfarm application rejected The Department of Energy and Climate Change (Decc) has refused an application for a 970MW offshore windfarm because of concerns about the visual impact to the Dorset and Isle of Wight coastlines. The Navitus Bay windfarm has been under development for over three years as part of a 50:50 joint venture between big six utility EDF Energy and Dutch energy company Eneco. The project would have generated 3TWh of electricity a year, offsetting about 1.3 million tonnes of carbon dioxide. But energy secretary Amber Rudd said that the project posed a "significant adverse impact" to viewers standing on the Dorset coastline, much of which is a world heritage site. WATER Ofwat 'should step back in price control' Thames Water has called for Ofwat to take a step back in price controls and for the sector to move towards negotiated set- tlements with customers. Thames Water director of strategy and regulation Nick Fin- cham said changing to the new system would deliver outcomes "acceptable to customers in the long term". The move would place more responsibility on the companies to develop a business plan with direct input from their custom- ers, as is the case in Scotland, with Ofwat having less direct input into the way the final busi- ness plans look. Renationalisation no longer unthinkable Political Agenda Mathew Beech "The reshaped Labour party has a lot of learning to do" Jeremy Corbyn's rise from le- wing backbencher to main- stream politician and leader of the opposition is now complete. His coronation by the Labour Party was confirmed on Satur- day, and his top team were in place by the end of Monday. Wigan MP Lisa Nandy has been appointed shadow energy secretary aer Caroline Flint decided to step down from the role. Nandy has no previous energy experience. The closest she gets is that she joined the Corbyn's cabinet, an opportunity to start to understand the impor- tant issues in energy and water. On top of that, it will be their first real test as they are tasked with putting across their new leader's vision for the energy and water sectors. Aer all the talk of renation- alisation, all eyes will be on Corbyn, Nandy and McCarthy, to see whether that was just cam- paign talk, or whether there is some substance behind Corbyn's "personal wish". "End the Big Six Energy Fix" campaign in 2012. Former shadow environment secretary Maria Eagle has been promoted to the role of shadow defence secretary. Filling her shoes is Bristol East MP Kerry McCarthy. She has served in various shadow ministerial roles, including in the shadow Treas- ury, but this is her frontbench debut. Her environment and water experience is limited to her personal political interests. Corbyn is new to frontbench politics himself, so the reshaped Labour party has got a lot of learning to do. The party confer- ence season will give Nandy and McCarthy, as well as the rest of

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