Utility Week

10 | 15TH - 21ST DECEMBER 2017 | UTILITY WEEK Policy & Regulation This week Firms may walk away from SMR initiative Many companies have 'given up' on UK as a location to develop new nuclear technologies Companies are threatening to walk away from the UK's long delayed mini-nuclear plant programme despite an announcement of new govern- ment funding. Energy minister Richard Har- rington announced the govern- ment's long-awaited update on its small modular reactor (SMR) competition at the Nuclear 2017 conference in London. Unveiling £44 million for research and develop- ment into the rebadged "advanced nuclear" initiative, Harrington said the UK has the potential to become a "world leader in developing the next generations of nuclear technologies". However, Dr Ian Scott, co-founder and chief technol- ogy officer of developer Moltex Energy, told Utility Week that many companies had already given up on the UK as a location to develop nuclear technology because of ministerial dithering. "There is a serious danger because this is being driven by small companies worldwide," he said. "A lot of overseas companies have almost given up on the UK so there is a lot of catching up to do." He also questioned why the government was asking companies to retender for the research and development funds, given they have already submitted information for the SMR competition. Alan Woods, director of nuclear strategy and busi- ness development at Rolls-Royce, said at the conference that UK developers were not competing on a level play- ing field with overseas companies. DB ELECTRICITY Official says Euratom talks have stalled The UK government's negotia- tions with the EU over its depar- ture from the Euratom nuclear co-operation regime have stalled over the regulation of supply contracts, a senior civil servant has revealed. David Wagstaff, deputy director of Euratom exit at the department of Business, Energy and Industrial Strategy, told the Nuclear 2017 conference that the EU considers the future frame- work for supply contracts to be an issue about future relation- ships, which it wants to delay until the second phase of talks aer the UK's divorce terms have been agreed. Wagstaff said: "It doesn't signal a huge falling out with the EU, it signals in their view that it's not a separation issue but a future relationship issue." ENERGY SSE and EDF appeal grid rebate decision SSE and EDF Energy have lodged an appeal with the Competition and Markets Authority against an Ofgem decision to refuse a £120 million rebate on network charges for generators. The regulator says electric- ity consumers will be "disap- pointed" by the appeal and has vowed to defend its decision. SSE and EDF Energy believe transmission network use of sys- tem charges in 2015/16 exceeded an average annual cap of €2.50/ MWh set by an EU directive. In March 2016, SSE submitted a modification to the Connection and Use of System Code (CUSC), which would have returned the alleged overpayment through an £120 million rebate. Two alterna- tive versions of the modification were approved by the CUSC panel at a meeting in June. However, Ofgem rejected the modifications last month based on its interpretation of an exemption in the EU directive for charges covering the connec- tion of generation assets to the transmission network. ELECTRICITY Suppliers call for right to appeal against price cap Suppliers have urged the govern- ment to give them the right to appeal to the Competition and Markets Authority against the level of price cap set by Ofgem, if it becomes law. In their submissions to the pre-legislative inquiry into the dra price cap legislation being carried out by the Department for Business, Energy and Indus- trial Strategy select committee, a number of utilities said an appeal mechanism was a pre- requisite for continued investor confidence in the sector. Fuel for thought: ministerial 'dithering' Political Agenda David Blackman "Reeves is not afraid to give the government a hard time" If anyone out there thinks being an MP is a cushy number, they haven't been paying attention to the work of the Department for Business, Energy and Industrial Strategy select committee. There has been a blizzard of announcements in the past week about the committee's activities. The increased work rate partly reflects the character of its new chair Rachel Reeves, who took over aer the general election. Until a few years ago, the ex-Bank of England economist and secure a fast-track passage through Parliament. He may get more than he bargained for. Reeves is not afraid to give the government a hard time, as she displayed in a bad-tempered exchange with climate change minister Claire Perry about the latter's clean growth plan. The price caps bill is probably the best opportunity in years Reeves – as a backbench MP – will have to put her stamp on a piece of legislation. She can be expected to grab it. was widely tipped to become the first female chancellor. However, aer Jeremy Corbyn's election as Labour leader, Reeves opted not to make herself available to serve in his shadow cabinet. The Labour front bench's loss has become the business committee's gain as Reeves has launched a string of inquiries, including one on the post-Brexit future for the civil nuclear sector. The BEIS committee's in tray includes a matter of pressing concern to utilities: scrutiny of the government's dra energy price caps legislation. Business secretary Greg Clark wants to use the scrutiny to knock the bill into shape

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