EMR
George Osborne’s Treasury has refused to co-operate with a powerful committee of MPs preparing the coalition’s flagship plans for low-carbon, affordable energy in what is being seen as further evidence of the chancellor’s hostility to the green agenda, the Observer can reveal. In an extraordinary standoff, the Treasury has refused to send a minister to answer the concerns of the cross-party energy and climate change select committee prompting a furious response from the committee’s Tory chair, Tim Yeo. Further riling the body, which has been asked by ministers to scrutinise the draft energy bill for parliament, the junior Treasury minister, Chloe Smith, has subsequently even refused to answer a series of written questions, which MPs believe must be addressed if the plans to reform the electricity market are to become workable. The dispute is expected to become public next week, when the committee publishes a report on the bill. The Treasury is likely to face strong criticism for standing in the way of the legislative process and failing to address the concerns of potential investors in clean energy, who say that flaws in the legislation, as currently drafted, will endanger the quest for cleaner energy at affordable prices.
Guardian (Observer) 14th July 2012 more >>
The government has stepped up efforts to jump-start the troubled nuclear power building programme. Last week KPMG, the accountant, was appointed to advise on talks with EDF Energy and Centrica, which plan to build Britains first new atomic reactor in more than 20 years at Hinkley Point in Somerset. The companies say they need billions in subsidies to cover the upfront cost. The EDF-Centrica group is in a strong negotiating position after a rival consortium of Eon and RWE, the German utilities, put their nuclear joint venture up for sale in March. Citi, the investment bank, said the government could have to guarantee a payout of up to £166 a megawatt hour more than triple the current wholesale rate.
Sunday Times 15th July 2012 more >>
Urenco
The Government is holding a “beauty parade” for bankers to advise it over a potential sale of the UK’s multi billion-pound stake in nuclear power giant Urenco. The move marks a step towards a deal that could net British taxpayers as much as £3bn, according to estimates that value the entire company at £8bn-£10bn. Urenco, headquartered in Buckinghamshire and registered in the UK, is one third owned by the Government, with the rest split between the Dutch government and two major German utilities, Eon and RWE. Financial advisers have been invited to tender to advise the UK as it carries out discussions with the Netherlands and Germany over a potential sale.
Telegraph 15th July 2012 more >>
National Grid
National Grid is proposing spending more than £21bn on its electricity transmission network in the eight years from 2013 to connect new power plants across England and Wales. It will also spend £9bn on gas pipelines. With the announcement imminent, analysts have warned that Ofgem, the energy regulator, is not likely to allow National Grid to charge consumers as much as it would like under “price control” regulation which governs the level of expenditure and rate of return. National Grid has suggested bills could increase by between £15 and £20.
Telegraph 14th July 2012 more >>
Renewables
The cost of subsidies for wind farms is expected to top a billion pounds this year for the first time. The disclosure comes ahead of a long-awaited government announcement to cut the size of the subsidy, which benefits the big energy companies but is added on to household electricity bills. The scale of the reduction was last night bogged down in Whitehall wrangling. Edward Davey, the Energy and Climate Change Secretary, was expected to make a decision before the Commons breaks up for the summer on Tuesday. However, Whitehall sources told The Sunday Telegraph last night that discussions were still continuing code for Coalition rows about the scope of subsidy cuts leading to fears that the announcement could be postponed.
Telegraph 14th July 2012 more >>
The energy department was set to unveil a rejigged scheme for all renewable technologies wind, biomass, waste from energy in March. This included a proposed 10% cut to the onshore wind payout. George Osborne, the chancellor, attempted to push through a 25% reduction, but the renewables industry threatened legal action. It is understood that the energy department is still debating the final figure this weekend, but it is expected to reveal an amount closer to the original 10% reduction before parliament rises on Tuesday for its summer recess. Subsidies for offshore wind, which receives three times the wholesale electricity price, are likely to remain unchanged.
Sunday Times 15th July 2012 more >>
Green Deal
IT COULD be Britains biggest home makeover. Homeowners and tenants are to be lent up to £10,000 each to make their homes greener. They will be allowed to spend it on high-tech lighting, underfloor heating, wood-burning stoves, french shutters and a range of other aspirational improvements, as well as traditional insulation measures. The money will be made available under the green deal to be launched this autumn by Greg Barker, the climate change minister, as part of a drive to make Britains housing more energy efficient. Last week Barkers department released a list of 45 types of home improvement that will be acceptable for financing via the green deal. The list also includes LED lighting, new front doors, shower units and taps, roof lights and insulated or heated wooden floors.
Sunday Times 15th July 2012 more >>
