Networks
Electricity network charging is facing its most significant reforms since the creation of the current NETA/BETTA system. Ofgem believes that current charging methodology creates distortions in the market and incentivises undesirable behaviours. This is because the entire electricity network structure is undergoing significant change, [...]
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 [...]
The challenges posed to electricity grids by adding increasing amounts of intermittent renewable generation are well known, and costly to manage, however a Scottish technology company claims to have the answer. Faraday Grid, believes it can massively increase grid capacity to carry renewables at [...]
National Grid recently published a roadmap to widening access to the Balancing Mechanism to smaller, distributed assets and demand-side response. The increasing de-centralisation of the electricity system, along with the growth in intermittent generation, is making the task of balancing the system more challenging [...]
Ofgem has published the latest strand in its ongoing work on making network charging arrangements fit for purpose against a backdrop of significant changes to the nature and use of both transmission and distribution networks. It has issued a consultation into network access arrangements [...]
On Friday, Mr Justice Lavender handed down his Judgement on the application by a number of small electricity generators for a judicial review into Ofgem’s decision last year to limit the amount of so-called "embedded benefits" available to such generators. The Claimants had been [...]
Last week Will Gardiner, chief executive of Drax Group, told the Guardian newspaper that Britain’s increasing reliance on electricity imports through the use of interconnectors is a threat to energy security, and will result in the country importing carbon emissions. He also said that [...]
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 [...]
Last week the legal challenge issued by Peak Gen and seven other companies against Ofgem’s decision last year to change the charging base for the demand residual component of transmission charges was heard at the Royal Court’s of Justice in London. I was in [...]
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 [...]