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 cover Capacity Market consultations, the latest on the CfD fourth round, the consultation on the new energy NPS suite, the Offshore Transmission Network Review, plus the gas price crisis.
- Electric Vehicles
The Secretary of State for Business, Energy and Industrial Strategy has told the Environmental Audit Committee that there will be a consultation in the coming months of 2021 to examine the recycling of batteries for electric vehicles.
UK Parliament, 21 September 2021
- Energy Regulation
Ahead of the next full review of the Capacity Market, which is taking place in 2024 (the Ten-Year Review), the Government is consulting on its design and its long-term future. We take a look at the proposals in more detail.
A Department for Business, Energy and Industrial Strategy (BEIS) consultation enquires whether any new generating technologies have been developed since it previously consulted, which could participate in future Capacity Market auctions. Consultation ends: 23.00 on 1 November 2021.
BEIS, 1 October 2021
The 2011 suite of energy National Policy Statements (NPS), which guide the determination of development consent applications for energy related nationally significant infrastructure projects (NSIPs) in England and Wales, have for a long-time been ripe for review. That review has now occurred, with new draft statements published by BEIS on 7 September 2021 at the start of a public consultation process due to run to 29 November 2021. This article provides our overarching observations on the draft suite of NPS.
Ofgem has published a guidance document setting out the information they expect to see in companies’ business plans for RIIO-ED2 and how they will assess those plans.
Ofgem, 30 September 2021
A BEIS consultation seeks responses on the regulatory framework for fusion energy, which will cover regulation of: occupational and public health and safety; environmental protection; planning consent; third party liabilities; and security and safeguards for radioactive material. Alongside this, the Government has also launched a Fusion Green Paper outlining the UK's intention to become the first country in the world to detail how it would legislate to ensure the safe and effective rollout of fusion energy. Consultation ends: 23.45 on 24 December 2021.
BEIS, 1 October 2021
GB Wholesale Electricity Market Arrangements: Re-coupling GB auctions for cross-border trade with the EU at the day-ahead timeframe
A BEIS consultation is seeking views on the current arrangements for trading electricity on power exchanges in the GB wholesale electricity market as well as their proposals to support efficient cross-border trading. Consultation ends: 28 October 2021.
BEIS, 30 September 2021
A BEIS consultation seeks responses to inform the further development of possible options for future reform of combined heat and power policy. Consultation ends: 20 December 2021.
BEIS, 27 September 2021
Government issues response to National Infrastructure Commission report 'Anticipate, React, Recover: Resilient Infrastructure Systems'
Following a National Infrastructure Commission report recommending a new framework to help support change across infrastructure sectors, the Government has accepted the recommendation to implement resilience standards for infrastructure operators and appropriate testing against these standards. The details of how these standards will be implemented, including the scope and timeframes, will be published following the National Resilience Strategy.
Cabinet Office, 15 September 2021
- Oil & Gas
Updated guidance covering offshore oil and gas exploration and production, offshore gas unloading and storage and offshore carbon dioxide storage activities.
Offshore Petroleum Regulator for Environment and Decommissioning and BEIS, 24 September 2021
An Oil and Gas Authority (OGA) consultation seeks views on its proposed Governance Guidance which sets out when the OGA will normally consider the adequacy of a licensee's governance arrangements, and the factors which will usually be considered. Consultation ends: 12 November 2021.
OGA, 20 September 2021
The Government has published a consultation "Offshore Transmission Network Review: Enduring Regime and Multi-Purpose Interconnectors", seeking views on approaches for an enduring regime to plan, develop and deliver offshore transmission. We look at the proposals in more detail and which projects will be affected.
A Scottish Affairs Committee report calls for transmission charges and grid investment to be equally shared across the UK to help strengthen the Scottish renewables sector amid concerns that some renewable projects in England and Wales have a competitive advantage as they are paid to connect to the grid, whereas Scottish projects must pay to connect to the grid.
House of Commons Scottish Affairs Committee, 17 September 2021
Documents and guidance relating to the Contracts for Difference fourth allocation round (AR4) have been published including a consultation that seeks views on further changes to the Contracts for Difference Standard Terms and Conditions.
BEIS, 13 September 2021
- Retail Energy Market
Support for consumers if an energy supplier changes and what protections are available.
BEIS, 23 September 2021
A statement on the UK gas market by the Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng.
BEIS, 20 September 2021
Ofwat has written to all water companies in England and Wales challenging them to improve their efforts to support effective markets. Following its review of incumbent company support for effective markets (project RISE), Ofwat holds the view that, despite some improvements, water companies can still do more to support effective markets.
Ofwat, 16 September 2021
Business Retail Market: Proposals to deal with un-invoiced Wholesaler charges in the event of an unplanned Retailer exit
An Ofwat consultation seeks views on amending wholesale price control arrangements with a view to enabling wholesalers to recoup relevant un-invoiced revenue for services provided to a retailer in the event of a retailer's unplanned exit from the business retail market. Consultation ends: 29 October 2021.
Ofwat, 16 September 2021