Ofgem publishes next steps in network charging reform

Last week Ofgem published its “minded to” decision on electricity network charging reform as part of its Targeted Charging Review (“TCR”) into the way in which residual transmission charges are recovered from consumers, and on certain “embedded benefits”: Charges for using the electricity network have two elements: Forward looking charges that are designed to ensure…

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Market coupling failures undermine the Internal Energy Market

There are two main pillars to European energy policy: the internal energy market (“IEM”) and the Climate Change Package. The IEM was the result of extending the Single Market into energy, and involved the unbundling of networks from generation and supply with regulated rather than negotiated access to those networks. The ultimate goal is the…

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RIIO-2: Ofgem consults on tougher price controls for networks

Last week Ofgem has published its consultation for the next round of price controls for energy networks, known as RIIO-2. RIIO-1 had been strongly criticised for allowing network companies to generate above average levels of returns on businesses that are seen to be less risky than the wider economy. Network companies have been earning returns…

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The rise of the corporate PPA

  Power Purchase Agreements (or “PPAs”) have been around for a long time, as agreements between market participants for the offtake of electricity from generating facilities. However, the past few years have seen the rise of the so-called “Corporate PPA” where companies whose business is not related to energy are procuring the electricity the use…

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