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UTILITY Week 5th May 2017

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UTILITY WEEK | 5TH - 11TH MAY 2017 | 15 Policy & Regulation This week Intervention could 'undo progress made' Trade body calls on politicians to involve industry in discussions to avoid 'unintended consequences' The chief executive of Energy UK has issued to a plea to politi- cians of all colours to work with the sector and not risk the "unintended consequences of intervention". The trade body last week published its manifesto for next month's general election, which highlights a number of issues to help develop a more sustainable future. Speaking to Utility Week, Lawrence Slade said one of the key messages in the document is "make sure you are involving industry in discussions". "Don't do anything that will risk the unintended consequences of intervention, which could undo all the good progress that is starting to come through in the market now," said Slade. "What we want to do is work together to make this market really sing for all consumers. That's our plea to all of the parties." The Conservative Party has already pledged to cap standard variable tariff energy prices if it is re-elected, but the Energy UK manifesto states "competition is the most appropriate way to drive down prices and increase innovation for all". The manifesto calls for the continued commitment to provide visibility of long-term support for all low-carbon technologies through setting contracts for difference (CfD) allocation rounds on a rolling one-year basis. "Unless you fix how people are using power and gas, you will not ultimately solve the problem of price always being an issue," said Slade. JH ELECTRICITY PAC warns of decarbonisation gap A leading group of MPs has slammed the government's track record on carbon capture and storage (CCS). In a report published last week, the House of Commons' Public Accounts Committee (PAC) claimed Whitehall has failed to support the construc- tion of large-scale CCS projects. The report said that aer the Department of Energy and Climate Change's first competi- tion for support ended in 2011, it launched a second one without being clear with the Treasury on the support that would be avail- able to successful CCS projects. The MPs found this contributed to the Treasury's decision in 2015 to end the competition early by withdrawing the £1 billion capital grant previously made available. The committee concluded there is now a major gap in the government's decarbonisation plans, and has urged the Depart- ment for Business, Energy and Industrial Strategy to set out how this gap will be filled. ENERGY Scots want energy 'fully devolved' A Scottish minister has admitted Holyrood would like to see energy "fully devolved" north of the border. Speaking at the Community and Renewable Energy Scheme (CARES) conference, energy min- ister Paul Wheelhouse said there is strong support for renewables across the Scottish Parliament and added "we would like to see energy fully devolved". "I think Scotland could be an exemplar if we were given a chance, whether that's through devolution, or through inde- pendence," said Wheelhouse. ENERGY 'Fraudulent' price cap 'won't fix market' The Conservative manifesto com- mitment to a regulated cap on standard variable tariff energy prices is "fraudulent" and will not fix underlying problems in the energy market, says shadow energy minister Alan Whitehead. Speaking to Utility Week, Whitehead explained: "If you just put an energy price cap on and you don't do anything else to reset the reasons for the price rises you think justify a price cap, you are actually doing something quite fraudulent. Because you are just kicking those price rises down the road." Whitehead said Labour, which also advocates interven- tion in the energy market, would take a longer-term approach to "fundamentally" address market issues that "allow price rises to go ahead without any effective control on them". Slade: 'work together to make this market sing' Political Agenda David Blackman "Cross-border relationships will be fraught due to Brexit" During the Troubles, the IRA used to take potshots at what was then the sole electricity link across the Irish border because it was one of the most visible signs of cross- border co-operation. Paramilitary bombing took the facility out of action for nearly 20 years until aer the Good Friday agreement. The reopening of the inter- connector has enabled a single energy market to emerge across the island of Ireland, delivering lower bills and more secure sup- plies for customers on both sides With Northern Ireland looking set to fall into energy supply deficit by 2021, a House of Commons select committee report this week urges the com- mission to make its decision by the end of this year. Businesses in Northern Ireland already have to pay higher energy bills than their counterparts elsewhere in the UK. As the most peripheral part of the UK adjusts to life outside aer Brexit, it will need all the help it can to remain competitive. of the border. But Brexit means the future of cross-border rela- tionships between the Republic and the UK will still be fraught. Concerns over a new inter- connector between Northern Ire- land and the Republic, running through Country Armagh, are more aesthetic than sectarian. To carry the wires across the border would involve the erec- tion of 401 pylons, just over a quarter of which will have to be built in Northern Ireland. The impact on the landscape means the decision on the project has been referred to Ulster's Plan- ning Appeals Commission, which has yet to issue its verdict follow- ing a public inquiry in February.

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