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UTILITY WEEK | 17TH - 23RD FEBRUARY 2017 | 5 "We are helping to upgrade the architecture of the energy system to make it fit for a smart future" Dermot Nolan, chief executive, Ofgem as he set out the regulator's Forward Work Plan for 2017-2018. £960m The value of public sector water supply contracts now out for tender. 40 The number of businesses now supported by Ofgem's Innovation Link. 41 Number of homes in an off-grid development in Suffolk that will be supplied by LPG from Flogas The quarterly Electric Insights report produced by Drax and Imperial College London showed that low-carbon generation averaged 40 per cent over the last quarter and hit a new record of 81 per cent during the Christmas period. The report also highlighted the moment when Brit- ain became a net exporter of energy to France for the first time in six years due to nuclear outages. However, it observed that ongoing repairs to a cross-Channel interconnector meant the UK could not take full advantage of this export opportunity. Low-carbon generation meets 40% of demand New board directors at Horizon Nuclear Power William Doig, power and energy consultant at Grove Consulting, and Dr Ken Petrunik, former adviser to the chief executive of Nuclear Power, Emirates Nuclear Energy Corporation, will join the board of Horizon Nuclear Power as inde- pendent non-executive directors, effective from 1 March. The appointments come as Horizon prepares to apply for a nuclear site licence for the con- struction and operation of the Wylfa Newydd nuclear power station, on Anglesey, north Wales APPOINTMENTS Ofgem will review its approach to awarding supply licences in response to industry concern about the resilience of suppliers to volatile market conditions. The regulator will also review the financial requirements that new suppliers are obliged to meet, and the way it monitors supplier performance, chief executive Dermot Nolan said. In a speech setting out Ofgem's forward plan of work for 2017/18, Nolan said: "We have had many representations from those who consider we should require companies to meet more significant financial tests, both before and aer receiving a licence." As a result, he said, "we will review our approach to award- ing supply licenses, the financial requirements on suppliers, and ENERGY Ofgem looks to beef up stress tests how we monitor supplier perfor- mance later this year". However, Nolan added that "it's possible that we will not make any changes following this review". Nolan's comments follow a commons committee hearing at the end of January at which Npower's managing director of domestic markets, Simon Stacey, warned MPs that there was a risk to consumers and the energy industry in allowing current requirements for market entry to persist. Referring to the collapse of GB Energy Supply last year, Sta- cey said: "GB Energy created a very bad customer experience by holding customers' money. That needs to be looked at because I fear there will be other failures that will damage the industry." Consumer charity Citizens Advice welcomed the news that Ofgem will look at more robust financial checks on suppliers. However, it also urged the regu- lator to take the opportunity to deliver a wide-ranging package of reform. In a blog, the watchdog said Ofgem should take a more proactive approach to tracking supplier vulnerability. It also advocated a range of legislative changes to the licensing regime. "Any companies that want to supply an essential service must be subject to an assess- ment process that requires them to demonstrate upfront that they're both prepared to enter this market and fully understand the possible risks," said Gillian Cooper, head of energy retail markets at Citizens Advice. AVERAGE POWER OUTPUT FROM EACH TECHNOLOGY AND TOTAL CO2 EMISSION FROM THE POWER SECTOR DURING THE FOURTH QUARTER OF THE PAST FIVE YEARS 20GW 15GW 10GW 5GW 0GW Nuclear Biomass Imports Hydro Wind Solar Gas Coal CO2 emissions 40 30 20 10 0 MT 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2016 2015 2014 2013 2012 107 MPs back tidal lagoons 107 MPs have called on BEIS secretary Greg Clark to respond to the recommendations of the Hendry Review on Tidal Lagoons, and in particular Hendry's call for a pathfinder tidal lagoon, as soon as possible. Chair of the All Party Group for Marine Energy and Tidal Lagoons Richard Graham MP said: "Hendry started his review as a sceptic and ended as an enthusiast… many of us believe that tidal lagoons meet the aims of the government's new industrial strategy." ELECTRICITY