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This week’s edition of Energy highlights includes the Council of European Energy Regulators’s (CEER) report on ‘accepted market practice’ in the energy sector under the regulation on wholesale energy market integrity and transparency (REMIT), Office of Gas and Electricity Markets’ (Ofgem) consultation on its five-year review of the Capacity Market Rules, publication of the final draft contract documentation for the Contracts for Difference (CfD) third allocation round and publication by Ofgem of a new Direction to make modifications to the Regulatory Instructions and Guidance (RIGs) for RIIO-ED1. The Office for Nuclear Regulation (ONR) has published its corporate plan for 2019 to 2020 and the The Nuclear Decommissioning Authority (NDA) has published its five-year research and development plan for 2019 to 2024.
CEER has published a note on ‘accepted market practice’ in the energy sector, and the framework, definitions and rules under REMIT (Regulation 1227/2011/EU). See: LNB News 18/04/2019 73.
Ofgem have published a new Direction to make modifications to the RIGs for RIIO-ED1. On 8 March 2019, Ofgem sought views on version 4.0 of RIGs. Following feedback, the modifications outlined in the Directive aim to clarify existing RIGs reporting requirements. Version 5.0 of RIGs, which includes these modifications, took effect from 1 April 2019. See: LNB News 23/04/2019 22.
Ofgem has announced a consultation on its five-year review of the Capacity Market Rules. The consultation considers discrete areas of the rules or framework and proposes changes that Ofgem aim to implement to simplify the capacity market in the short term. The consultation is the first phase in aiming to develop longer term changes to the rules and to how Ofgem’s capacity market rules changes process operates. The consultation closes on 28 May 2019. See: LNB News 18/04/2019 63.
The Department for Business, Energy and Industrial Strategy (BEIS) has published the final draft versions of the CfD Standard Terms and Conditions, the Generic Agreement and contract variants for CfD Allocation Round 3. BEIS has also published a supplementary response alongside the final draft contract documents. This explains the changes to the CfD standard terms. Changes to the CfD contract are shown using tracked changes. See: LNB News 18/04/2019 38.
On 23 April 2019, the European Commission announced it has approved under EU State aid rules a scheme to support electricity production from renewable energy sources in Lithuania (SA.50199). The Commission found that the scheme—open to all types of renewable generation—will contribute to EU environmental objectives without unduly distorting competition. From 1 May 2019, Lithuania will provide State aid support to installations generating electricity from renewable sources, such as wind, solar or hydropower. See: LNB News 23/04/2019 69.
Claire Perry, the Minister of State for Energy and Clean Growth, has made an oral statement in the House of Commons on the climate change protests and the government’s climate change policy. Perry highlights a number of key legislative and policy actions the government has undertaken, including a new waste strategy and investment in the offshore wind sector. See: LNB News 24/04/2019 58.
ONR has published its corporate plan for 2019 to 2020. The plan sets out the ONR's aims and aspirations for 2019/20 and outlines to some of the challenges, risks and opportunities for the year ahead. According to the document's executive summary, the regulator’s ‘overarching priority is to continue to deliver efficient and effective regulation of the nuclear industry, holding it to account on behalf of the public’. See: LNB News 23/04/2019 61.
NDA has published its five-year research and development plan for 2019 to 2024, setting out the intention to extend its portfolio following successful investments over the last five years. The NDA’s intention is to provide information to stakeholders about what they are aiming to fund in that time. Significant developments, such as the Industrial Strategy and the Nuclear Sector Deal, have changed the nuclear decommissioning research and development landscape—the NDA has taken these into account when creating its plan. See: LNB News 23/04/2019 30.
Reinsurer Hannover Re SE, has said it will scale back the coverage it provides to new coal-fired power plants or coal mines, joining a growing industry move away from fossil fuels. See Law360 article: Hannover Re joins other reinsurers in move away from coal.
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