Helm’s proposal for a default electricity tariff could go further

In my previous post, I described the findings of Dieter Helm’s review into electricity pricing. Here I will explore in more detail the section on supply costs and his recommendation that a default electricity tariff be implemented, which is particularly relevant in light of the legislation to cap electricity prices which is currently passing through…

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The Helm review: some good ideas but lacking in detail

Last week Dieter Helm published the findings of his review into energy pricing and found that the cost of energy is significantly higher than it should be, and energy policy, regulation and market design are not fit for purpose. (It should be noted that the terms of reference for the review extended only to electricity,…

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The Clean Growth Strategy: long on ambition, short on detail

Last week the Government published its long awaited Clean Growth Strategy, described by the Telegraph as the coming of age of the green agenda. Clean growth is defined in the document as growing the UK’s national income while cutting greenhouse gas emissions, which are expressed in terms of millions of tonnes of carbon dioxide equivalent….

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Local flexibility markets mark the emergence of the new DSOs

The electricity system is in transition. Transmission connected, centralised synchronous generation is being displaced by multiple small installations of intermittent asynchronous generation connected at the distribution level. Advances in sub-transmission technology including as storage, smart homes, electric vehicles, DSR and others are challenging the traditional design of networks. Accommodating these changes though traditional DNO operations…

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Further evidence that climate models overstate global warming

Yesterday scientists from the Universities of Exeter and Oxford together with University College London, announced that climate change is not as bad as previously thought due to modelling errors. In a paper published in the journal Nature Geoscience, the scientists concluded that global climate models used in the 2013 report from the Intergovernmental Panel on…

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Once upon a time….Mayor Khan’s zero carbon fairytale

This week the mayor of London, Sadiq Khan has published his draft environmental strategy for the city, with an ambition for London to be a zero carbon city by 2050, with energy efficient buildings, clean transport and clean energy. He plans a ” low carbon circular economy” in which as much value as possible is extracted…

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Is Secure and Promote delivering for retail competition?

On 25 July, Ofgem launched a consultation as part of its review of the Secure & Promote licence condition. Secure and Promote was introduced in 2013 to improve liquidity and market access for small and new entrant electricity suppliers. Small suppliers face a number of challenges in their electricity procurement – typically they do not…

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Helm energy price review: time to confront the sacred cows

The Government has this week appointed Dieter Helm, professor of economic policy at Oxford University, to lead a review into the cost of energy. He will chair a panel of experts including Nick Winser, executive director at National Grid and former Conservative MP Laura Sandys, who will examine the entire electricity supply chain and consider…

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