Annual Energy Statement Ed Davey, Secretary of State for Energy and Climate Change delivered the Annual Energy Statement to Parliament this month. With energy prices growing as a political issue he used the statement to announce a series of measures to improve the market. He said that the government will work with industry to reduce the length of time it takes to switch to a new energy supplier from the current five weeks to 24 hours. He also said the Ofgem, the energy regulator, will be strengthened and there will be criminal sanctions for the firms if they fix the market. Energy Taxes Alongside the measures in the Annual Energy Statement the government also announced this month a review of green energy taxes, as a means of reducing energy bills. Three of the “big six” energy firms have announced price rises of between 8% and 10% in recent weeks. The Liberal Democrats have accused David Cameron of making a “panicky U-turn” after he announced the review. The outcome of the review will be announced in the Autumn Statement on 4 December. Nuclear power station at Hinkley The government and EDF Group have reached commercial agreement on the key terms of a proposed investment contract for the Hinkley Point C nuclear power station in Somerset. The two sides agreed the “strike price” of £92.50 for every megawatt hour of energy Hinkley C generates. The two reactors planned for Hinkley, which will provide power for about 60 years. France’s EDF Energy will lead a consortium, which includes Chinese investors, to build the plant. Our response is available here. Government guarantee for infrastructure A large number of energy projects have reached their prequalification stage in order to be eligible for UK Guarantee schemes. The scheme has the capacity to underwrite up to 40 billion pounds of investments up to 2016. The government has already awarded a £75m guarantee to power plant Drax for their £700 million programme to partially convert the UK’s biggest coal power station to biomass. Energy Bill The Energy Bill returned to Parliament this month when it began its Report Stage in the House of Lords. The Minister in charge, Baroness Verma, mentioned the BCC in her speech. An amendment to include a decarbonisation target was defeated. The Bill will return to the Commons in a few weeks and is expected to become law before the end of the year. Solar roadmap launched The government has launched a new Solar PV Strategy Roadmap. According to the strategy the four main challenges facing the sector are: cost-reduction; carbon-effectiveness; sustainability; and scaleability. Further work will be completed ahead of publishing the Solar PV Strategy in spring 2014 which will assist the development of policy and the growth of the sector. The aim is for the solar industry to an aspiration of 20GW within a decade. Upcoming developments
- OPITO – the skills for oil and gas organisation – in partnership with key industry organisations (including Aberdeen Chamber) publishes an oil and gas Labour Market Intelligence Survey;
- Autumn Statement to set out the results of the government review into green taxes;
- Energy Bill to complete its Parliamentary stages and become an Act of Parliament;
- Offshore wind industrial strategy;
- Oil & gas review interim conclusions will be published in the autumn;
- A final version of the EMR delivery plan will be published in December.
For further information contact Tom Nolan at 020 7654 5824 or [email protected]
