Government plans to run a capacity market (CM) auction for delivery in 2022/23 early next year. It intends to allow renewables to bid for contracts and make changes to methodologies that govern de-rating factors for interconnectors. All of which is subject to successfully re-instating the CM following its suspension by the European Commission, which upheld Read more…

Government should accept that 2020 is not a realistic timetable to complete the UK-wide rollout of smart meters and push it back to 2023, Citizens Advice has reiterated. Latest government figures show the rollout will not be complete by the end of next year. Suppliers, many of whom are under financial pressure, would have to Read more…

Ofgem has found E Gas and Electricity, Economy Energy and Dyball Associates breached competition law and fined them £870k. The regulator said they had an anti-competitive agreement not to target each others customers through face-to-face sales, with Dyball enabling the arrangement by designing, implementing and maintaining software systems that allowed customer meter point details to Read more…

Ofgem is seeking fast feedback from power industry participants on how much it would cost to  change their systems to accommodate an imbalance settlement period of 15 minutes, instead of the 30 minutes currently used, in order to head off market changes that could have a net cost in GB of €500 million. The change is Read more…

Small energy supplier Solarplicity has been told by Ofgem it must pay money owed to Feed-in Tariff generators by 16 May. The company was banned from taking on new customers in February following concerns over customer service and enabling switching. Ofgem then said it had three months to “get its house in order”. The company’s Read more…

Ofgem’s targeted charging review (TCR) could significantly slow the build out of unsubsidised renewables and lead to a ramp up of new gas fired generation, according to Aurora. The consultancy said the TCR and other changes the regulator is pushing through may also require the government to restart subsidy schemes for onshore wind and solar Read more…

Small energy supplier URE has been given three months to pay its outstanding Renewables Obligation payment or risk losing its licence. Ofgem has issued a final warning – and can revoke URE’s supply licence if it doesn’t pay. Under the Renewables Obligation, energy suppliers are obliged to buy a certain amount of power from renewable Read more…

Ofgem has launched a review of the microbusiness market. It believes small firms are ill-served by the current set up, with many paying over the odds in an “opaque” market. Ofgem said a “key focus of concern … is the activities of some brokers” and its review seeks views from small businesses about their experiences Read more…

The Committee on Climate Change (CCC) has advised government to set a more stringent decarbonisation target. Its latest report urges a net zero greenhouse gas emissions target by 2050, up from its previous recommendation of 80%. Government says it will study the findings. The CCC called for policymakers to act far more urgently in setting Read more…

Energy and clean growth minister Claire Perry has responded to ongoing climate protests by the Extinction Rebellion group. Perry said she accepts that urgent action to curb carbon emissions is necessary, and welcomed the pressure on government to act. However, she pointed out that the UK has already made progress in reducing emissions since passing Read more…

Ofgem aims to lighten the admin burden for power providers as part of its five-year review of the Capacity Market. It said the complexity of the current rules represent a barrier to entry and may lead to inefficient auction outcomes. The regulator plans to improve secondary trading of capacity agreements and make it easier for Read more…

Energy policy and regulation – what you need to know and how incoming change will shape your business strategy and bottom line The continued rate change to the energy industry looks set to continue in 2019. While the policy for decarbonising heat and transport continues to edge forwards the focus is still on the power Read more…

Ofgem has published its proposals to stop businesses with poor credentials and finances entering the energy retail market. The regulator is acting after a spate of suppliers went bust in 2018 and early 2019, many leaving debts that other suppliers – and their customers – will now pick up. From June, anyone that wants a Read more…

Government wants large industrials to outline the barriers to investing in energy efficiency. It also seeks information on what has worked when resources have been deployed to cut consumption and carbon. The informal consultation hopes to inform the design of the Industrial Energy Transformation Fund (IETF), which has a budget envelope of £315m to 2024. Read more…

Hoping that the UK’s heat sector will decarbonise itself is a high risk strategy, suggests Richard Lowes, of the University of Exeter Energy Policy Group. He believes heat policy requires an overhaul. Optimism versus realism As a natural optimist, I seriously hope that much of the UK’s heat decarbonisation problem can be solved by technological and Read more…

“Sanguine” about the challenge of decarbonising power and “relatively sanguine” about transport, Dermot Nolan is “far more nervous” about decarbonising heat – and its impact on bill payers. Speaking at Aurora’s spring forum, Ofgem’s chief executive said decarbonising transport would throw up “challenges of equity”, because some people will benefit from lower costs by using Read more…

National Grid has issued a robust assessment of Ofgem’s price control proposals, urging the regulator to rethink its plans or oversee “five years of missed opportunities for consumers”. The company wants 5.5 per cent returns. Ofgem proposes 4 per cent. Ofgem aims to deliver a tougher price control after setting a framework (RIIO1) that allowed Read more…

Drax has been granted developmental consent by secretary of state Greg Clark for a 299MW open cycle gas turbine (OCGT) at Rookery South, a former clay pit near Stewartby, Bedfordshire. The site is also earmarked for an energy from waste facility, the subject of long-running disputes and appeals. Drax plans to build the plant through Read more…

Energy suppliers may face another big Renewables Obligation (RO) bill after a spate of market exits. Cornwall Insight forecasts a potential shortfall in the RO Buyout Fund of up to £43.8m for 2018-19. Under the Renewables Obligation, energy suppliers are obliged to buy a certain amount of power from renewable sources. If they do not, Read more…

The department for business energy and industrial strategy is consulting further on changes to the Capacity Market that would enable wind and solar projects to be included, make changes in the way interconnectors participate, and prepare for a ‘T-3′ auction to be held in early 2020. The consultation assumes the European Commission will grant State Read more…