Energy weekly highlights—8 August 2019

This week's edition of Energy weekly highlights includes the publication of the Department for Business, Energy and Industrial Strategy’s (BEIS) Keeling Schedules which explain the technical amendments to the Capacity Market and the Office of Gas and Electricity Markets’ (Ofgem) report on its regulated requirement to review the first five years of the Capacity Market Rules (the Rules). Ofgem has also published its 2019 National Report to the European Commission on the state of the UK energy market, a consultation on the twelve re-opener submissions received during May 2019 application window as well as a policy paper which sets out its regulatory priorities and approach to distribution system operation (DSO). Also this week, the widest range of companies and organisations ever assembled in support of onshore wind has called for the new Energy Minister, Kwasi Kwarteng to support the development of new onshore wind farms, and a report on Exercise Shen has been published outlining the objectives of the operation and recommendations based on observations.

Electricity and gas market regulation and licensing

Ofgem’s 2019 National Report stresses continued commitment to working with European regulators

Ofgem has published its 2019 National Report to the European Commission on the state of the UK energy market. The report covers developments and regulation, as well as the continuing compliance of UK energy markets with EU electricity and gas directives. See: LNB News 01/08/2019 18.

Ofgem consults on funding proposals for energy network company requests

Ofgem has opened a consultation on proposed decisions for requests by energy network companies to adjust their funding under the RIIO-ED1 price control, which runs from 2015–2023. This follows 12 funding requests with a total value of £322m. Ofgem proposes allowing network companies to recover approximately £75m and refusing approximately £247m of funding requests. The deadline for responses is 30 August 2019. See: LNB News 02/08/2019 14.

Ofgem promises increased customer input and competition in future strategy

Ofgem has set out its regulatory priorities and approach to DSO in a position paper, which it has also opened for consultation. Among its priorities, Ofgem has highlighted increasing activity, coordination and the efficiency of the DSO, to keep up with a distribution system which is being moulded by decarbonisation, decentralisation and digitisation. Stakeholders can submit their views on the proposed regulatory strategy by 15 October 2019. See: LNB News 06/08/2019 8.

Lower wholesale costs to see energy caps fall during the winter months

Ofgem has declared that energy caps are to fall during this coming winter because of lower wholesale costs. The default price cap is currently set to fall from £1,254 to £1,179 from 1 October 2019. The pre-payment meter cap will also fall from £1,242 to £1,217 for the same period. The caps currently cover approximately 15 million customers. See: LNB News 07/08/2019 3.

Renewable energy

Companies urge government to support onshore wind

The widest range of companies and organisations ever assembled in support of onshore wind has called for the new energy minister Kwasi Kwarteng to support the development of new onshore wind farms. In a letter addressed to the energy minister companies claim that supporting onshore wind will help the UK to achieve its net zero emissions target at the lowest possible cost which will save consumers money and boost the competitiveness of the industry. See: LNB News 05/08/2019 30.

Scottish government to see energy produced from waste water

The Scottish government has declared that a new £6m project, named the Stirling District Heat Network project, will use ‘renewables technology to harness energy from waste water’. The project is to receive £2m through the Scottish government’s Low Carbon Infrastructure Transition Programme, and is the first of its kind in the UK. See: LNB News 07/08/2019 63.

Capacity Market, balancing services and energy system flexibility

Government publishes Keeling Schedules on changes to Capacity Market Rules

BEIS has published Keeling Schedules that explain the amendments to the Capacity Market Regulations. This follows the Keeling Schedules on ‘Capacity Market: technical amendments’ no longer being valid. See: LNB News 02/08/2019 56.

Ofgem publishes report on Five Year Review of the Capacity Market Rules

Ofgem has published a report on its regulated requirement to review the Capacity Market Rules (the Rules) within five years of their entry into force. The report also includes Ofgem’s Forward Work Plan on future changes to the Rules and regulatory framework. It details Ofgem’s consultation calling for feedback on proposed amendments to the Rules and responses to wider policy questions on the Capacity Market framework. See: LNB News 02/08/2019 41.

Oil and gas

UK National Contingency Plan (NCP) report includes recommendations following test exercise

A report on Exercise Shen—a test of the UK NCP for marine pollution from shipping and offshore installations—has been jointly published by the Maritime and Coastguard Agency, The Scottish government, BEIS, the Offshore Petroleum Regulator for Environment and Decommissioning, and the Oil and Gas Authority. The report sets out fifteen recommendations and three areas of good practice from the exercise. See: LNB News 05/08/2019 17.

Filed Under: Energy

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