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UTILITY WEEK | 8TH - 14TH JANUARY 2016 | 15 The year in review " "They're being breathtakingly illogical and idiotic" 17 April Renewable UK on the Tory manifesto pledge to remove subsidies for new onshore wind. "Energy firms have totally run out of excuses for not cutting our bills" 5 June Richard Lloyd, executive director, Which?, backs calls from energy secretary Amber Rudd for suppliers to cut retail prices. "The regulator isn't ready" 26 June The Energy Saving Trust on how emerging smart technologies could leave Ofgem and the big six behind "Not analytically robust" 10 July UKOOG slams a report from Defra that fracking could lower house prices. "Greyest government ever" 7 August John Sauven, executive director, Greenpeace, on the government's decision to cut support for onshore wind and solar. "We have made progress and built a strong foundation" 4 September Paul Massara, outgoing chief executive of Npower, on the achievements made at the company under his tenure. "I'm using my 30p to buy candles – that's my energy policy" 2 October Ian Marchant, former SSE chief executive, blasts the government's decision to cut the Renewables Obligation. "No gimmicks, no funny mechanisms" 16 October Ian McCaig, chief executive, First Utility, on the suppliers plans to enter the German market. "Another question mark over government competence" 30 October Barry Gardiner, Labour MP, slams government backing Hinkley Point C. " SHARE PRICES: Centrica: down 20.5% Drax: down 47.9% EDF: down 41.1% Eon: down 38.1% p Iberdrola: up 18% p National Grid up 2% Pennon: down 9.6% RWE: down 56.1% p Severn Trent: up 7.5% SSE: down 10% p UU: up 2.7% The key event in terms of a global shi to low-carbon energy and tackling the growing threat of climate change was COP21 in Paris in November. The talks were seen as the "last chance" for a deal to be struck that could keep global temperature increases below 2C, especially aer the failure to get a legally binding deal agreed in Copenhagen in 2009. A deal was drawn up and agreed to by the 194 member states, although parts of it are not legally binding, and the key points of the agreement are: • A partially legally binding agreement for climate change action. • Five-year reviews. • $100 billion-a-year price floor to support developing nations. • No timescale on the fossil fuel phase out was agreed. The fih carbon budget The end of 2015 also saw the Committee on Climate Change issue its fih carbon budget advice to the government. It said "urgent action" is required to keep the UK on track to meet its carbon targets as set out in the 2008 Climate change Act. The committee stated: • "A number of new policies and clear long-term signals to investors are urgently required" to cut emissions by 57 per cent by 2030 and keep the UK on track to meet its 2050 climate target. • The UK should aim for a carbon intensity of 100g/CO2/kWh by 2030 for elec- tricity generation, down from 450g now. • One in seven homes should be using low-carbon heat sources by 2030. The major energy companies had a tough 12 months, which saw Eon and RWE making some significant structural changes as they aim to separate their conven- tional generation businesses from the renewables side. The move has aimed to keep their struggling thermal generation away from their renewables operations, which are seen as an avenue for future growth. Eon announced its move at the end of 2014, and at the start of 2015 RWE ruled out following its German counterpart. However, in December, it announced it was going to create a new "innovative decentralised energy group" within a year. The new company will take control of RWE's renewables, grids and retail operations in Germany and abroad to create a "platform for growth" which will "strengthen the viability of the group overall". Centrica stated in July it would reallocate around £1.5 billion in investment from its struggling upstream arm to drive growth in its more profitable down- stream supply and services business. The development of new business models is something that other energy players may look to join in with in the coming year. National Grid 2015 saw the wheels set in motion for signifcant change at National Grid, with long-serving chief executive Steve Holliday set to leave this year. The company confirmed in November he would depart and be replaced by John Pettigrew, who has been with the company for 25-years. Top of Pettigrew's agenda will be to ensure Grid is able to cope with diminishing margins and the changing dynamics between supply and demand. In June, National Grid's head of commercial oper- ations, Duncan Burt, exclusively told Utility Week that the company is preparing to revolutionise how it maintains secure supply by relying on demand-side measures for "well over 50 per cent of the time" by 2030. Alongside this, National Grid is also set to sell a majority stake in its gas distribution business, with SSE the early favourite to take it on, although the "usual suspects" are following developments closely. The gas sale, plus the change of attitude towards demand-side response, marks a shi for National Grid, and one that will continue to take shape this year. Climate change Toils and troubles, restructures and reshuffles