Editor’s Week – Government greenlights the world’s first tidal lagoon project, energy and environment select committees take shape, and Ofwat is slammed over Welsh Water job cuts.

The new government has wasted no time in spelling out where it stands on renewables support – last week acting to cut onshore wind support but this week giving the greenlight to the first tidal power project planned for Swansea Bay. Those poised to lead the scrutiny of Government policy via the energy and environment select committees took shape with the end of chair nominations on Wednesday, and Ofwat faced its own scrutiny as Welsh Water plans 360 job cuts to meet its efficiency targets.

Government greenlights Swansea Bay Tidal

This week the government gave the greenlight to the 320MW Swansea Bay Tidal Lagoon project which industry and politicians alike have hailed as a ‘gamechanger’ in the UK’s ambition to develop secure low carbon energy at an affordable price. partners Although £150-168/MWh for the expected support level makes it far from cheap, the project could spark a tidal power revolution which brings with it larger, cheaper projects in the future. The project developers plan to move forward with a Chinese construction partner ahead of a tidal developement MOU between the two countries expected in weeks. If the project moves forward it could provide energy to the national grid by 2018.

Nominations close for energy and environment select committees

Scottish National Party MP Angus MacNeil is expected to take up the position of chair of the Energy and Climate Change Committee in a little over a week, following his party nomination on Tuesday morning. MacNeil is the only SNP candidate put forward for the role ahead of the 17 June vote and is therefore a shoo-in for the role. A closer contest will be fought between three highly qualified Labour MPs for the role of chair for the Environmental Audit Committee. As tipped by Utility Week last week the nominations have been given to Barry Gardiner, Huw Irranca-Davies and Alan Whitehead.

Union blames ‘overzealous’ Ofwat for 360 Welsh Water job cuts

Ofwat came under fire this week as trade union GMB accused the regulator of subjecting water companies to an austerity agenda which will result in damaging job cuts. Welsh Water has planned to cut 360 job cuts. The trade union said the company has “copped a heavy penalty” in the price review and is a victim of a “cheap is best” political agenda which will force the company to scale back its workforce by 10 per cent to meet its efficiency targets. Welsh Water said it has worked “tirelessly” with the trade unions to deliver a new five year deal for the majority of its workforce, and Ofwat said how Welsh Water achieves its agreed targets is up to the company.