Greencoat leader under pressure to quit review panel

Think tank insists Richard Nourse inclusion leaves cost of energy review “fatally damaged”

The decision to include Richard Nourse, managing partner of Greencoat Capital, as a panel member for the government-commissioned cost of energy review leaves the initiative “fatally damaged”, a think tank leader has said.

According to an article published by the Telegraph, Civitas director David Green said: “The normal understanding for all independent enquiries is that they should seek the truth without fear or favour. 

“People with a direct financial interest should be asked to give evidence as interested parties. They should not be official advisers.”

Greencoat Capital is the investment manager for Greencoat UK Wind which owns windfarms with a net generating capacity of 547MW across the UK. In late 2016, Greencoat Capital also launched Greencoat Solar, which now manages 182MW of generation capacity across 16 UK solar farms. 

Furthermore, Greencoat UK Wind’s 2016 annual report openly acknowledges the company’s exposure to a fall in the market price of electricity.

It states that “other things being equal, a decline in the market price of electricity would reduce the portfolio companies’ revenues. Approximately 40 per cent of the group’s revenues are exposed to the floating power price”.

With the cost of energy review forming a key element in governmnet’s plan to deliver the “lowest energy costs in Europe” for UK businesses and households, Civitas’ Green insisted that Nourse’s inclusion on the advisory panel leaves the initiative “fatally damaged”.

Htting back against this criticism however, Nourse told the Telegraph: “This is Dieter Helm’s review – I will be contributing my perspectives as a challenge panel member when they are sought, not forming conclusions. 

“It’s worth adding that I am well known in the sector for emphasising the importance of the UK securing its energy at the lowest possible cost, all in the context of meeting our carbon budgets.”

A government source added: “The reviewer and his team have a breadth of knowledge and views about different energy sources. 

“The panel will meet Dieter three to four times to give their opinions – they will not be writing or editing his findings but giving their personal views. The panel is unpaid and we are aware of their business interests.” 

Nourse is one of five experts selected to advise on the review which is to be led be Professor Dieter Helm.

The other panel members are:

• Terry Scuoler CBE, chief executive of EEF, the Manufacturers’ Organisation
• Nick Winser CBE, chairman of the Energy Systems Catapult
• Laura Sandys, chief executive of Challenging Ideas
• Isobel Sheldon, Engineering & Technology Director of Johnson Matthey Battery Systems

Read profiles of each panel member here.