Utility Week

Utility Week 23rd September2016

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

Issue link: https://fhpublishing.uberflip.com/i/729726

Contents of this Issue

Navigation

Page 10 of 31

UtILItY WeeK | 23rd - 30th September 2016 | 11 Policy & Regulation "It is absolutely vital that the UK government honours its earlier commitment to provide a ring-fenced allocation for marine energy in its renewables support scheme. They must tackle the current uncertainty that exists before they cause irreparable damage to the long- term prospects for the sector." Nicola Sturgeon, Scottish fi rst minister and SNP leader "The important point is that we have taken energy and climate change and put them alongside business and industrial strategy – and I think that by doing so we will get a better, more strategic approach on these issues." Theresa May, PM and Conservative leader "We are very sceptical about competition in the water industry, which actually goes against the trend in much of the rest of Europe, which is of re-municipalising water and giving it back to communities. A government committed to devolution might consider that, but this government wants competition." Jeremy Corbyn, Labour  leader government wants Areas to address: Behind the ongoing EU exit negotia- tions and debate, there are a num- ber of areas the various parties will  want, and need, to address at their party conferences. These not only relate to Brexit, but also the ongo- ing development and operation of  the energy and water sectors. Here  are some of the key areas Utility Week expects the conferences to address: Environmental regulations The majority of the UK's environ- mental and water quality regula- tions are created at a European  level. The Drinking Water Directive,  Bathing Water Directive and other  environmental legislation are moni- tored, regulated, and punished, by  the EU. The negotiations by David  Davis's Department for Exiting the  European Union, over the course of  the next few months and years, will have to address what UK standards  will be, and where the responsibil- ity for creating them will fall – the  Department for Environment, Food  and Rural Aff  airs or the Environ- ment Agency are the likely destina- tions. In the short term, nothing  is likely to change but having that  longer term certainty, on which the  water and energy companies can  invest and maintain their assets, is  crucial. Carbon targets Once the initial hysteria surround- ing the fact the "climate change"  part of the name was not being  transferred to the new Department  for Business, Energy, and Industrial  Strategy (BEIS) had died away,  thoughts turned to the UK's role in  the EU meeting its climate change  targets. Energy and business secretary  Greg Clark has said the UK will  ratify the Paris climate agreement  drawn up at the end of last year, but  there remains some uncertainty as to whether the UK will stick to its  climate change plans. The Climate Change Act ensures  the 2050 target remains in law, but  further encouraging sounds and  policies from all the parties would form a positive discussion, and one  to reassure green developers. EU and single energy market The fi nal major Brexit policy area the energy companies will be con- cerned about is the UK's ongoing  relationship with the EU and the  single energy market. The European Commission  has been aiming for integration of  European member states, allowing  electricity to flow across borders  to the regions of highest demand.  This in turn will help to off set the variability in renewable generation  and the mismatch between supply  and demand across the EU. With the UK looking to build  more interconnectors, tapping into  the greater European electric- ity market, how Britain interacts with its EU neighbours is vitally  important. Water competition Away from Brexit, the non-domestic water market is about to enter  shadow operation, ahead of the full go-live in April next year. Alongside  this, the government has stated  that the domestic market is likely to be opened by 2020. With an Ofwat review stating  that a typical household would save  only £6 a year, views on how – and  whether – the domestic sector  should be opened up to competi- tion will surface. Nuclear For new nuclear, most people read  Hinkley Point C. The much-delayed  project is back on the agenda since  new prime minister Theresa May approved the deal  last week. Within Labour there are divi- sions over support for new nuclear,  and the SNP is opposed. With a  need for signifi  cant low carbon  baseload generation, the debates  will surround whether the new projects are required, and what represents a good deal if they are  deemed necessary. Consumer protection The Competition and Markets Authority set out its plans to protect energy customers earlier in the year  and the government has pledged  to implement them in full. But opponents argue that this does not  go enough to protect consumers,  many of whom are still on the most expensive standard variable or  prepayment tariff s. Solutions could involve greater  state intervention, stricter regula- tion, or a reliance on market forces to come up with the best result. The  options are bound to be discussed  by MPs and delegates.

Articles in this issue

Archives of this issue

view archives of Utility Week - Utility Week 23rd September2016