Posted on: 27/08/2024
This week's energy news headlines: Interim changes ahead of connections reforms get the green light; A new process is launched to help energy innovators access funding; The next steps in a shake-up of energy regulation are announced. Our industry round-up includes the latest updates from Government departments and energy regulators.
Ofgem has published details of the Renewables Obligation for 2023 to 2024. Suppliers have until 1 September 2024 to meet their obligations.
Ofgem has published the latest domestic Energy Consumer Satisfaction Survey for January to February 2024.
Elexon has published a consultation on modification P477 which addresses Data Protection Provisions for Market-wide Half Hourly Settlement. The response date is 19 September.
The latest annual report for the Capacity Market covering the 2023/24 period has been published.
The latest Feed-in Tariff (FIT) levelisation report for April to June 2024 has been published.
The regulator has backed plans for interim changes to the electricity connections process ahead of major reforms.
Under the arrangements, any new directly connected transmission application made from 2 September will receive a transitional offer with only an indicative connection and completion point and no detail regarding transmission works and programme.
Ofgem said it agreed with the system operator and transmission operators that the arrangements are a “sensible and suitable interim measure to put in place” and would bridge the current connection process to the reformed gated process.
Last week Ofgem said reform of the grid connections process to quickly deliver more renewable energy projects is more critical than ever following the new UK Government’s refocusing of efforts towards a 2030 clean power mission.
A new process is being launched to accelerate funding for projects aimed at helping the energy transition.
Ofgem said innovators would now have more opportunities to apply or re-apply to its Strategic Innovation Fund (SIF) and gain funding quicker than ever before.
Under the changes there will be more application windows rather than a single application window for each phase, and flexible start dates and durations to enable project teams to decide which phase to apply for depending on progress.
Marzia Zafar, Deputy Director Strategy of Energy Systems Management & Security at Ofgem, said: “What these changes mean is that great innovation will be funded and rewarded seamlessly – just bring us your ideas.”
The regulator has set out the next steps for a major package of reforms to the governance of the energy industry codes.
Earlier this year Ofgem published a consultation on its approach to implementing the reforms with the aim of creating an “agile, forward looking” framework more responsive to change and which would better reflect the government’s Net Zero ambitions.
Ofgem said it has decided to proceed our proposals to create an electricity commercial code, electricity technical code, and a gas network code.
However, it said it acknowledged concerns raised by respondents about the inclusion of the System Operator Transmission Owner Code (STC) in the technical code and recognises that further detailed consideration is needed.
It intends to publish the first Strategic Direction Statement (SDS) for all codes within the scope of energy code reform in 2025.
A new poll has shown strong public backing for expansion of renewable energy production and for the setting up of GB Energy.
The YouGov survey found that six in ten British voters support the new Government’s plans for the state-owned energy company which was a key policy for Labour at the election.
The poll showed a clear majority in favour of Britain getting more of its power from renewable sources, with solar and tidal energy receiving the greatest backing, at 74%.
However, nuclear energy proved more divisive with 30% wanting more electricity generated by nuclear power and 31% wanting less.
Ongoing volatility in global energy markets has been blamed for a 10% increase in the domestic energy price cap from October.
The increase will see the average annual energy bill for a dual-fuel household paying by direct debit rise to £1,717, adding approximately £12 per month to the typical bill.
However, Ofgem pointed out that the new cap is 6% (£117) cheaper compared to the same period last year.
Gillian Cooper, director of energy at Citizens Advice, said: "We've braced ourselves for a challenging winter but the price cap increase will no doubt see even more people fall behind on their energy bills.”
The regulator reviews and sets the price cap every three months. The levels for the period 1 January to 31 March 2025 will be published by 25 November.
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