Utility Week

UTILITY WEEK | 10TH - 16TH NOVEMBER 2017 | 7 Policy & Regulation This week Ofgem mulls reform of network access Regulator says changes are needed to enable new technologies to connect to networks swiftly Ofgem has outlined a number of potential changes to net- work access arrangements and forward-looking charges for system usage. It says the reforms are necessary to cut costs and enable new technologies to con- nect promptly to the power grid. In a working paper, Ofgem said the current arrangements for network access pay little attention to the nature of the rights being granted: "The allocation of access is gener- ally on a first come, first served basis, with rights not readily tradeable or transferable. As a result, some users may be disadvantaged in seeking to get access to the system and capacity may not be being used efficiently." To alleviate these concerns, Ofgem has floated pro- posals to vary the duration and "firmness" of connection agreements to reflect the differing needs of users. The regulator is similarly considering offering agreements that are restricted to a specific geographical area. Access rights could potentially be traded as well, "allowing users to signal the value they place on differ- ent types of access and giving greater flexibility to adjust their capacity over time to better fit their needs". Ofgem is also mulling changes to forward-looking usage charges to reflect the individual impact of users on network costs due to reinforcements. Options include finding a new balance between fixed charges, volumetric charges, and capacity charges; varying charges accord- ing to time and location; and recouping a wider range of network costs by, for example, covering alternatives to reinforcement such as active network management. TG ELECTRICITY National Grid culls balancing services National Grid has announced the retirement of a series of products as part of its ongoing overhaul of balancing services. The closures are the first stage in a three-step process of rationalisation, standardisation and improvement that the sys- tem operator announced in June. Claire Spedding, head of business development, says the firm is changing the way it buys balancing services to "break down barriers to entry and encourage wider participation". The system operator has ceased the procurement of eight balancing services. Existing contracts will not be terminated immediately, although "dis- cussions are being held with affected parties to identify other routes to market for their assets, where appropriate". ENERGY UK emissions curbs 'will match EU ETS' The government has pledged that its post-Brexit emissions- trading arrangements will cut UK emissions by as much as par- ticipation in the EU's Emissions- Trading System (EU ETS). In its response to the House of Commons' BEIS (business, energy and industrial strategy) select committee's report on the UK's energy and climate change negotiating priorities, the gov- ernment said it remains "firmly committed" to carbon pricing as an emissions-reduction tool. All options for emission trad- ing are being considered whether or not the UK leaves the EU ETS as part of its wider withdrawal from the EU, according to the report. "Irrespective of the deci- sion on future UK participation in emissions trading, our future approach will deliver at least as much decarbonisation as our participation in the EU ETS." ELECTRICITY ECJ could oversee nuclear co-operation The energy minister has sig- nalled that he is open to the continued involvement of the European Court of Justice in the oversight of nuclear co-operation with the EU aer Brexit. Richard Harrington, giving evidence to the House of Com- mons BEIS (business, energy and industrial strategy) select committee's investigation into the UK civil nuclear sector post-Brexit, confirmed that the government was aiming for the "closest possible relationship" with Euratom. Pressed on whether this could involve an ongoing relationship with the European court, he said: "I am sure there is a sensi- ble solution that may involve the ECJ and other parties." Ofgem wants to reflect users' differing needs Political Agenda David Blackman "Corbyn made his case for public ownership of utilities" Westminster was taking what felt like a very well-timed break this week in the form of a mini- recess, giving the Commons a relaxed air on Monday morning. But while MPs had dispersed to their constituencies, the drip-drip of sexual harassment accusations continued. As Utility Week went to press, no fewer than seven Conservative MPs were under investigation, raising the possibility of a series of tricky by-elections. And two Labour MPs are also in hot water. made the case for bringing utili- ties back into public ownership. Responding to chancellor Philip Hammond's jibe that Labour wants to take Britain back to the 1970s, Corbyn argued that Labour's proposals weren't a throwback to a bygone era but about benefiting business by pro- viding cheap and reliable power. Amid the febrile state of politics, utilities had better work out what they can do to ward off the threat of public ownership before it is too late. For the government, the prospect of by-elections is wor- rying given that it relies on the Democratic Unionists to pass its business. Each Tory by-election loss means Jeremy Corbyn's Labour party is potentially a step closer to power. Shadow business secretary Rebecca Long-Bailey curiously didn't mention Labour's utility public ownership plans when she made a keynote speech at the Energy UK conference. That may have led some to wonder whether Labour was serious about its manifesto commitment. But the Labour leader dis- pelled any such doubts at this week's CBI conference where he

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