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As the autumn equinox passed this week, and the leaves fall from the trees, it is seasonal to expect delays. But rather than just on the railways, the energy sector is experiencing delays of its own. Away from the hold-ups, money has been doing the talking this week, as fines have been dished out, and significant deals agreed. The politics of utilities has continued apace as well, with Corbyn naming his new energy team, and Rudd admitting the government’s policy changes have had a negative impact.
The wait goes on
The Competition and Markets Authority (CMA) said it needs to refine its analysis of the energy market, and delayed its deadline for publishing the findings by six months, back to June 2016, although it expects to deliver its final remedies to the energy market by April.
The wait for carbon capture and storage (CCS) looks set to continue as well, as on Friday Drax announced it was pulling out of the White Rose project after the initial development phase is completed, blaming the government’s shift in energy policy.
The long-winded Hinkley Point C investment process is still dragging on, but there has at least been some movement. Chancellor George Osbourne pledged a £2 billion guarantee to the new nuclear plant ahead of a final investment decision expected later this year.
However, the move has not been welcomed in all quarters. Former shadow energy minister Tom Greatrex, writing exclusively for Utility Week, warned that the political mishandling of the deal could scupper the cross-party support for nuclear power and politicise all future project plans.
Money, money, money
United Utilities revealed it is facing a higher than expected financial hit of £25 million as a result of the cryptosporidium contamination in August. This is higher than original estimates of £15-20 million. On top of this a “significant number” of personal injury claims could be made against the company, even though even though no reported illnesses have yet emerged, a legal expert told Utility Week.
Severn Trent was also dealt a financial blow this week, after receiving the third largest pollution fine handed out to a UK water company of £480,000.
Money has also been important for Northumbrian Water this week, with water company agreeing £500 million deals for work to be delivered to maintain and upgrade its water and sewage pipes, and its water and wastewater treatment assets.
In the energy sector, Eco2 will have a bit more cash in its coffers after agreeing a deal to sell its 40MW Port Clarence biomass plant to Glennmont Partners for £160 million.
Let the party (conferences) begin
The political party conference season really kicks off this weekend as Labour, with new leader Jeremy Corbyn in post, head to Brighton. Ahead of the event, Corbyn continued his remodelling of Labour as he unveiled a new, bumper-sized shadow Department of Energy and Climate Change, with the ministerial team increasing from four up to six.
At the conference, Labour MPs will be certain to criticise the government’s energy policies, but even energy secretary Amber Rudd admitted this week they have had an impact, stating community energy projects are now “difficult to deploy” as a result of the Feed-in Tariff changes.
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