Welcome to this month's Energy and Water update, keeping you up to date with the major developments you need to know.


This month we've analysed the Future System Operator consultation and BEIS' consultation on competition in onshore transmission (and distribution) networks. We've also looked at the Hydrogen Strategy. There are new consultations on "greenwashing" energy products and tariffs and whether to regulate energy TPIs.

CCUS
Consultation on carbon capture, usage and storage (CCUS): duties and functions ofan economic regulator for CO2 transport and storage

A Department for Business, Energy and Industrial Strategy (BEIS) consultation seeksresponses on proposed duties, powers, functions and objectives of an economic regulatorfor carbon dioxide (CO2) transport and storage networks, to inform the continueddevelopment of carbon capture, usage and storage (CCUS) policy and legislativeproposals. Consultation ends: 26 September 2021.
BEIS, 2 August 2021

Consultation on carbon capture, usage and storage (CCUS): offshore decommissioning regime for CO2 transport and storage

A BEIS consultation seeks responses on proposals for establishing a fundeddecommissioning regime for carbon capture, usage and storage which aims to ensure thePolluter Pays Principle is met, while also encouraging investment in the sector to meet theGovernment's wider objectives. Consultation ends: 26 September 2021.
BEIS, 2 August 2021

Energy Regulation
Future System Operator Consultation

BEIS and Ofgem are jointly consulting on proposals to establish an expert, impartial FutureSystem Operator (FSO) with responsibilities across the electricity and gas systems. In thisAddleshaw Goddard article, we look at the role and functions of the FSO, its organisationalmodel and future functions.

CATOs finally make a comeback

CATOs (competitively appointed transmission owners) have been on the cards for over five years now. Brexit held them up, but now it's all systems go. The latest consultation from BEIS, Competition in Onshore Electricity Networks, asks for views on opening up both the transmission and distribution networks to competition.

Ofgem consultation on Early Competition in onshore electricity transmission networks

An Ofgem consultation on Early Competition in onshore electricity transmission networks summarises its views on early competition. Consultation ends: 14 September 2021.
Ofgem, 3 August 2021

Government to review rules to cease "greenwashing" of electricity tariffs

The Government has launched a review of green electricity tariffs amid concerns energy companies could be exaggerating their environmental benefits. It will examine the extent of "greenwashing" in the retail energy sector, whether the current system is suitably transparent and whether the rules around what can be called a "green" tariff remain fit for purpose.
BEIS, 16 August 2021

Consultation on framework for transparency of carbon content in energy products

A BEIS consultation seeks responses to inform how it might develop a more transparent framework for communicating the carbon content of energy products to consumers. Consultation ends: 6 December 2021.
BEIS, 16 August 2021

Consultation on third-party intermediaries in the retail energy market

A BEIS consultation seeks responses on the activities of third-party intermediaries (TPIs) in the retail energy market and the extent to which they cause harm (or risk of harm) to customers and the energy system. Consultation ends: 6 December 2021.
BEIS, 16 August 2021

Hydrogen
Creating a new market from scratch: The UK Hydrogen Strategy

How do you create a market for low-carbon hydrogen from scratch? The UK's Hydrogen Strategy sets out a roadmap to grow low-carbon hydrogen production and use from practically non-existent now to potentially forming 35% of UK's total energy supply by 2050. What are the challenges that need to be overcome? Find out more in our latest article.

Hydrogen for heat: facilitating a grid conversion hydrogen heating trial

BEIS is seeking views on possible legislative changes to enable the delivery of a hydrogen grid conversion trial. Consultation ends: 28 September 2021.
BEIS, 17 August 2021

Hydrogen Production Costs 2021

A report published by BEIS presenting levelised cost estimates for hydrogen production technologies, detailing methodology, data and assumptions.
BEIS, 17 August 2021

Water
PR14 Review: Discussion paper on findings

This discussion paper presents Ofwat's findings on the impact the 2014 price review (PR14) had on the sector during the 2015-20 period. Ofwat have undertaken a targeted review of PR14 and as such have not assessed every element or policy as part of this review. The discussion paper complements the ’Reflections on the price review’ which was published shortly after PR14 final determinations. Consultation ends: 22 September 2021.
Ofwat, 11 August 2021

Key Contacts

Richard Goodfellow

Richard Goodfellow

Head of IPE and Co-head of Energy and Utilities
United Kingdom

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Anna Sweeney

Anna Sweeney

Principal Knowledge Lawyer, Projects & Infrastructure
Leeds

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