Five things we learnt from Energy Spectrum | 673

In the week that National Grid is set to launch its 2019 Future Energy Scenarios (FES), this week’s Energy Perspective looks more closely at how new approaches could make it more attractive for small generators to connect to the transmission system. While we await with interest to see how FES treats these issues, the vision will likely involve connecting small as well as large power plants to a well-planned and managed transmission network – another step towards a renewables-focussed version of the transmission network as a step towards the 2050 net zero target.

The government’s Green Finance Strategy, published 2 July, is aimed at changing the behaviour of the financial sector, from the way it evaluates company performance to the services it offers customers. We look in more detail at the strategy in our Policy section this week, suggesting that all companies will come under growing pressure to increase the quantity and quality of data they provide on their climate impacts. In the same section we take in a Treasury Select Committee evidence session on the economic opportunities from decarbonisation and green growth which, through evidence given, made clear that while power decarbonisation has been achieved by and large without disruption to consumers, transport and heat will require behaviour change.

Ofgem’s latest consultation setting out the next steps in the development of the enduring Retail Energy Code is another very large consultation in the Switching Programme that covers numerous topics. In this week’s Regulation section, we dig down on the details, finding that the scope for amalgamating codes is considerable but some areas – like theft and the GDAA – will require further thought.

The latest switching figure from both Energy UK and Xoserve’s show that domestic switching is now at record highs. We analyse the data in our Industry Structure section, finding that the switching data sets measure differently, but for both gas and electricity we think switching is at least 20%. That for gas is nominally higher as Xoserve’s switching numbers include supplier of last resort transfers. Both rates are up at least two percentage points in a year.

We have two Nutwood’s this week. In the first, Cornwall Insight Associate Peter Atherton discusses the approach of the H119 results season and gives some pointers on what investors might be looking for; the second distils a presentation from Cornwall Insight Chairman Volker Beckers at Imperial College Business School under the theme of ‘a practitioner’s view of electricity market privatisation and liberalisation’.

Related thinking

Announcement

Energy market and net zero transition learning and development: Role-relevant career development training

We’re well over halfway through the calendar year and are now beginning to see more of the government’s thinking and policy-shaping around what needs to change to meet the 2050 net zero target. For example, the flurry of documents issued towards the end of 2020, including the Energy White Paper...

Low carbon generation

Our Renewables Pipeline Tracker: In with the new – scoping projects and progression through planning stages

Our latest Renewables Pipeline Tracker was published on 11 June, and this blog provides a summary of some of the recent developments in our coverage of the pipeline for new build and repowering renewables assets in GB. What’s new? Seabed leasing rounds, scoping projects and CfD announcements Since our previous...

Regulation and policy

How will consumers take to Market-wide Half Hourly Settlement?

Ofgem published its decision to implement the move to Market-wide Half Hourly Settlement (MHHS) on 20 April. This confirms plans to move to new settlement arrangements over a four and a half year time period, with the Elexon-led Design Working Group’s Target Operating Model to be used as the blueprint. Meters...

Regulation and policy

Ofgem raises modifications ahead of RCC and new switching arrangements

The latest edition of our Faster Switching Service Report due to be issued this week includes the latest developments in Ofgem’s Switching Programme and the associated Retail Energy Code (REC). Launched in November 2019, the Retail Code Consolidation (RCC) Significant Code Review (SCR) set out Ofgem’s intention to amalgamate the...

Regulation and policy

Calm before the storm? 2021 energy supplier compliance developments

The latest update to our Energy Supplier Compliance Portal went live on 4 May and includes changes to the compliance landscape during February to April 2021. While the previous quarter’s update reflected new principles resulting from Ofgem’s Supplier Licensing Review (SLR) and protections for prepayment meter customers facing self-disconnection, Q121...

Regulation and policy

Electricity transmission charging reform – overtaken by changing priorities?

Charging for the transmission network is never out of the development process for long. From major reviews, such as that initiated under Project Transmit in 2010, to significant reforms such as removing the triad benefit from distributed generation in 2018, and a host of smaller developments, change seems the only...

Energy storage and flexibility

How nuclear energy can help the UK reach its net zero goals

This article was originally written in Energy Spectrum on 21 March 2021. To find out more about a subscription to Energy Spectrum, please contact Nick on n.palmer@cornwall-insight.com. There are several challenges to reaching net zero, where its proponents believe nuclear could add value. Some of tomorrow’s main issues concern: How to provide low...

Commercial and market outlook

April showers bring DUoS for every half hour

Almost two years ago, Ofgem approved DCP268 DUoS Charging Using HH Settlement Data, which will move existing non-Half Hourly (NHH) settled demand customers onto time-based Half Hourly (HH) Distribution Use of System (DUoS) unit rate charges. With the modification to be implemented in the DCUSA on 1 April, we revisit...

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