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UTILITY Week 25th September 2015

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14 | 25TH SEPTEMBER - 1ST OCTOBER | UTILITY WEEK Policy & Regulation their traditional home in Perth to Aberdeen – with a much bigger venue able to house the swelled ranks of the party, and the greater media coverage as well. Another outcome of the SNP explosion is that new doors have been opened for the party, which have provided them with new platforms to score political points. With limited previous Commons experi- ence, the SNP's Westminster veterans were pushed towards the top roles in the party, leaving space for Angus MacNeil, Callum McCaig and Calum Kerr to take on the top energy and water roles. A settling-in period is taking place as MacNeil gets to grips with his role as chair of the Energy and Climate Change Committee while Kerr and McCaig have made fairly quiet starts as the environment and energy spokes- men, respectively, for the party. But this is expected to change as the SNP pushes the party line on energy and water, with one eye on May's Holyrood elections. Top of the SNP agenda will be the issue of transmission charges, something the SNP has repeatedly claimed are "unfair" against Scottish generators, including SSE's Longan- net coal-fired power station. Indeed, SSE claimed Longannet's forthcoming closure was partly a result of its £40 million trans- mission charge bill. The impact of the much-wielded govern- ment axe on renewable subsidies is the other topic topping the SNP agenda, especially with the party still aiming for 100 per cent of Scotland's electricity demand to be met by renewables. The numerous cuts have hit investor con- fidence and campaigners north of the border claim they will see thousands of jobs lost as the industry begins to stall. Party leader Nicola Sturgeon will be seek- ing to be seen to make a stand, not only to ensure Scottish energy security but also to protect green jobs. Learning to be done As the 2015 political world takes shape, there is a lot of learning to be done. The par- ties need to understand their new roles and responsibilities, and how to push on with their objectives. For utilities, the learning process is not only about how the Conservative govern- ment will go about its business once the cost- cutting axe has been put down, but also where Labour and the SNP stand. wThe first lessons take place in Brighton, Manchester and Aberdeen over the next month. VOTING INTENTIONS, 20 SEPTEMBER Party Share Change since August Conservative 42% (+2) Labour 30% (+1) Lib Dems 7% (-1) UKIP 13% (-) Green 3% (-1%) A bad deal on Hinkley risks blowing apart the political consensus in favour of nuclear. I n China this week, George Osborne and Amber Rudd were preparing the ground for the long-awaited final decision on Hinkley Point C, expected when the Chinese premier visits the UK in October. An infrastructure guarantee to underpin the contract for difference (CfD) agreed last year, and a significant role in a further possible new nuclear power station at Bradwell, seem to have both been required to secure the deal. While the news provoked the usual round of reaction and response – with some of the arguments of the sceptics more valid than others – an intriguing aspect of Hinkley happening is whether it will lead to a fracturing of the wider recent consensus on new nuclear in the UK. The pressing need to decarbonise, the current lack of scalable low-carbon baseload generation or storage alterna- tives, and concerns over domestic energy security contributed to a change of attitude about nuclear power in some quarters. Notable environmentalists, who were pre- viously opponents, changed their minds and public support increased. Political parties shied, with the last Labour government establishing the process for new nuclear to be approved. David Cameron has moved from declar- ing nuclear as a last resort before 2010 to being first in line to support now. A Liberal Democrat energy secretary presided over CfD negotiations (even though his personal website had to have anti-nuclear campaign statements removed). All three, by 2010, broadly accepted that new nuclear was a valid part of a low-carbon generation mix. However, supporting new nuclear is not the same as supporting Hinkley. Many advocates of nuclear power are troubled by the choice of reactor design, the financial model being deployed and the negotiated strike price. Without care and attention, the political choices of the government may squander the current broad accept- ance of the part new nuclear can play, years before any power is generated. While large trade unions, including the GMB and Unite, have supported their members working in nuclear power for decades, the new leader of the Labour Party is personally sceptical. The new ranks of the SNP in parliament retain a historic ideological opposition to nuclear, despite it generating a greater proportion of power in Scotland than in England. The apparent contradiction of a govern- ment cutting incentives for renewables while increasing support for nuclear sets advocates of different low-carbon tech- nologies against each other. Continuing to include existing nuclear in the capacity auction makes little sense. Lack of trans- parency about the basis of the strike price agreed by the government only heightens suspicions that the deal is not as good as it could be for the consumer. The type of consensus that large infra- structure developers seek, to reduce the political risk and cost of capital, is not eas- ily secured. It can't be comfortable or cosy, but must be rooted in scrutiny and chal- lenge, if it is to endure the doubts which inevitably arise ahead of construction. If George Osborne sees himself as the prime minister by the time Hinkley is generating, then he needs to think about his approach to nuclear power in the wider energy context. Many, on an objective analysis, see nuclear as a necessary part of our generation mix as the UK seeks to decarbonise. Yet through intentional antagonism and political posturing on other technologies, the chancellor risks creating a new totemic energy issue for his opponents to rally around. Opinion Tom Greatrex, Former shadow energy minister Labour Brighton, 27-30 September SNP Aberdeen, 15-17 October Conservative Manchester, 4- 7 October CONFERENCE DATES (ICM/Guardian)

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