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Utility Week 17th June 2016

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UTILITY WEEK | 17TH - 23RD JUNE 2016 | 17 Policy & Regulation The European Commission has presented its plans for the European Union (EU) to ratify the Paris Agreement, calling for a swi process to enshrine the global climate deal into Euro- pean law. No clear timescale has been set for the ratification, but Miguel Arias Cañete, EU com- missioner for climate action and energy, is confident that ENERGY European Commission proposes ratification of Paris Agreement the latest proposal will acceler- ate action from the 28 member states to avoid the bloc being le behind on the international push to mitigate global warming. "Aer Paris, the EU is doing its homework," Cañete said. "We are determined to maintain the momentum and spirit of Paris and ensure the early ratification – and the swi implementation – of this historic agreement. "Today's proposal demon- strates our continued commit- ment to lead the global clean energy transition and build a modern, sustainable and more climate-friendly economy." The Commission also under- lined its intention over the com- ing months to propose member state targets to reduce emissions in sectors that are not covered by the Emissions Trading System, This week REA wants protection for large-scale AD Association warns that cuts to feed-in tariff for anaerobic digestion would damage industry The Renewable Energy Associa- tion (REA) has urged the govern- ment not to cut the feed-in-tariff (FIT) for anaerobic digestion (AD), which it said would bring development of the industry to a halt. The association's head of biogas, Kiara Zennaro, told Util- ity Week: "We really strongly ask the government to not apply these caps and reduce the tariffs for large scale to zero. "Developers and investors have already been with- drawing funding and pulling out of projects because the economics don't stack up," she said. "Even the projects that are currently in the pipeline are at severe risk because of this and there is a serious risk that the sector will be brought to a halt." The Department of Energy and Climate Change has proposed cutting the tariff for large-scale anaerobic digestion projects from £7.81p/kWh to zero and reducing it for small and medium-scale projects by 46 and 35 per cent respectively. Zennaro added that the association believes the government made incorrect assumptions that led to the consultation on FIT rates for AD. "We disagree with some of the assumptions made by the government," she said. "The assumption is that these projects will be able to rely only on the Renewable Heat Incentive (RHI) [when part of a combined heat and power installation], when the tariffs for large-scale plans under the RHI at the moment are already very modest." The REA has published a report, warning about the future impact on renewables of the government's "numerous policy interventions". SJ WATER MPs slam 'reactive' approach to flooding MPs have criticised the govern- ment for failing to do enough to protect communities at risk of flooding. The Environmental Audit Committee (EAC) criticised the "reactive" approach to floods and said there was not enough long-term planning to prevent future flooding. It urged the government to maintain steady annual spending on flood defences, rather than letting spending fluctuate, and said it should pay for the upkeep of existing flood defences as well as investing in new ones. The report follows the storms that hit the UK between Decem- ber 2015 and January 2016, causing flooding in the north of England and Wales, as well as parts of Scotland and Northern Ireland. Storms Desmond, Eva and Frank caused estimated damage of £1.3 billion and flooded 16,000 homes. GAS Activists challenge fracking decision Campaigners have written to North Yorkshire County Council threatening to take legal action over its decision to approve Third Energy's plans for fracking near Kirby Misperton. Friends of the Earth and local residents group Frack Free Ryedale said the decision was "unlawful" on the grounds that the impact on climate change was "not properly considered". Last month, the council's planning committee voted 7 to 4 to approve Third Energy's plans to trial hydraulic fracturing at an existing exploratory well. However, campaigners have said the committee failed to consider the impact of burning gas extracted from the well at Third Energy's nearby power station. They said they may seek a judicial review if they do not get a satisfactory response from the council. ENERGY Ofgem suggests credit safety net Ofgem has published propos- als to protect consumers' credit balance if their energy supplier goes out of business. Under current arrangements, Ofgem will appoint a replace- ment supplier, but the regula- tor warned that this may cost customers whose accounts are in credit. Customers who pay by direct debit will oen be in debit during the winter and build up credit in the summer. Ofgem estimates that a typical customer's credit balance could peak at more than £100 a year. Under the new proposals, Ofgem would consider which supplier can best protect a consumer's credit balance. The regulator also proposes to allow, on a case-by-case basis, the costs of reimbursing the credit balances to be spread across all energy customers. REA says further large-scale AD is under threat such as transport, agriculture and buildings. And it will propose ways to integrate land use into the 2030 framework and prepare a communication on low-carbon mobility. The Commission said its proposals, and the revision of the Emissions Trading System, will deliver the remainder of the EU's commitments under the Paris Agreement.

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