Regulation

Ofwat names innovation competition winners

Water metering could save 0.5% of total carbon emissions

Ofgem gives green light for market-wide half hourly settlement

Ofgem to assess Covid impact on domestic consumption

Ofgem has announced plans to postpone the scheduled update of typical domestic consumption values (TDCVs) for gas and electricity consumers to assess the impact of the pandemic. Since 2013 Ofgem said domestic consumption has been on a “consistent decreasing trend”. However, due to millions of people being forced to work at home, early indications suggest there has been an increase since the first national lockdown in March 2020.

B-Mex merits analysed ahead of PR24

A new report commissioned by Ofwat has said the introduction of a B-Mex incentive, to measure end consumer satisfaction with non-household water providers, could “fill important gaps” in the existing regulatory framework. Ofwat is considering the recommendations of Europe Economics including running a pilot version from April 2022 ahead of potentially implementing the mechanism at the next price review in 2024, or via a different framework.

The regulatory road to net zero

As the UK moves towards net zero, there is growing feeling that some form of new regulatory methodology and settlement will be needed in order to deliver on these decarbonisation commitments. As part of Utility Week’s Countdown to Cop series, two experts from PA Consulting outline what they believe should be included in a new regulatory settlement.

Online tool launched to measure natural capital

An online mapping tool for measuring natural assets has been launched by a company co-founded by the former chair of the Natural Capital Committee, Dieter Helm. The developers said the tool gauges the benefits assets can provide in terms of carbon sequestration and storage, flood risk reduction, biodiversity and social wellbeing and will help inform discussions around the PR19 price review for water companies.

Electricity North West reveals £2bn business plan for RIIO ED2

Current system ‘doesn’t value storage and flexibility’

ESO fined for inaccurate demand forecasting

Fletcher’s reflections on water

A busy month for CMA watchers

The past month has seen announcements on the three sets of appeals that should be on a Competition & Markets Authority (CMA)-watcher’s radar – the granting of permission on the RIIO2 appeals, the final decision on PR19 in water and the decision on the rather obscure SSE code modification appeal. Maxine Frerk picks through the pertinent points and discusses the next steps.

CMA panel for RIIO2 appeals announced

CMA orders joint appeals on cost of capital in energy

New RO mutualisation arrangements come into force

New arrangements to link the renewables obligation (RO) mutualisation threshold to the annual cost of the scheme have come into effect. Mutualisation has long been a source of contention in the energy sector, with compliant suppliers obliged to pick up the shortfall when others do not pay. BEIS is also considering whether changes need to be made to the way the mutualisation amount is calculated.