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The end of summer failed to bring an end to problems for some of the UK’s electricity generators, and for the troubled smart meter rollout. In the water sector, progress towards market opening continues as more details emerge, and the GMB called on Ofwat to take a closer look at Severn Trent.
Power station problems
Energy giant Drax, accompanied by renewable generator Infinis, launched a legal challenge against the government’s plans to remove the exemption from the Climate Change Levy for renewable generators. The issue is not with the plan itself – although that is set to cost Drax an estimated £90 million over two years – but with the notice period of 24 days. This is deemed to be unreasonable and judicial review is calling for something more “proportionate” instead.
Things have also been far from smooth for Eggborough this week, as news emerged the news emerged the plant looks set to close down in March next year. The 2GW coal-fired power station requires an additional £200 million over the next three years to continue generating power and its owner said this level of investment is “financially unsustainable” for the 53 year-old plant.
The difficult birth of EDF’s Hinkley Point C nuclear plant continued, as the French utility admitted the plant will not be completed and generating electricity by 2023 as planned.
Change in the water
The Competition and Markets Authority (CMA) set out its plans for a streamlined M&A regime in the water market. The plans would allow for straightforward mergers to be approved within 40 days, rather than going directly to the more detailed investigation stage, which can take months to complete.
Ofwat also unveiled a change this week, by giving water companies greater freedoms to use specialist water debt collectors, many of whom are not approved by the FCA.
And if the GMB has its way, Ofwat will have another item in its in-tray after the trade union urged the regulator to investigate Severn Trent’s leakage performance, claiming it has suffered as a result of spending cut backs and 500 job cuts the company announced last year.
Smart rollout plans
More concerns have been raised about the smart meter rollout by energy suppliers. In its submission to the CMA’s proposed remedies for the energy market, the DCC stated prioritising prepayment customers first could delay the rollout, whilst smaller suppliers said this may end up harming some of the most vulnerable customers.
Microbusinesses also remained sceptical about the smart meter rollout, claiming it will just be an expensive way of providing accurate bills because of a lack of guaranteed support on how the access the benefits of the technology.
And finally…
The Utility Week Awards 2015 are fast approaching. But if you thought you’d missed your chance to enter this year, don’t fear. The deadline for entries has been extended until 18 September. If you have a team, project or company to be proud of, let the whole world know about it by entering now at: www.utilityweekawards.co.uk
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