Interesting links, articles, news and blog posts sent out to members on 23/08/23.
News: Ofgem cannot fix the energy market unless ministers scrap the price cap – City AM
21 August 2023, Nicholas Earl. Even among regulators, the energy watchdog Ofgem has had a rough time of it. Over the past couple of years, it has seen 30 suppliers go bust on its watch, all the while seeing household bills spiral to record highs:
Link: https://www.cityam.com/ofgem-cannot-fix-the-energy-market-unless-ministers-scrap-the-price-cap/
Annual Report: Operation of the Capacity Market in 2022/23 – Ofgem
21 August 2023. The eighth report on the operation of the Capacity Market (CM) covers the Capacity Market Delivery Year (“Delivery Year”) 1 October 2022 to 30 September 2023 (to date). Two CM Auctions were scheduled in this period: 2022/23 T-1 Auction (Delivery Year 2023/24) and 2022/23 T-4 Auction (Delivery Year 2026/27). The report describes Auction outcomes, including Prequalification processes and observations:
Link: https://www.ofgem.gov.uk/publications/annual-report-operation-capacity-market-202223
News: Capacity Market: Rule changes for upcoming auctions – Cornwall Insight
16 August 2023, Lee Drummee. The latest round of Capacity Market auctions is underway following the publication of the auction parameters on 18 July, with the prequalification window subsequently opening on 26 July. In this blog, Cornwall Insight explores some of the changes made to the rules and regulations of the scheme ahead of this year’s auctions:
Link: https://www.cornwall-insight.com/capacity-market-rule-changes-for-upcoming-auctions/
News: Energy firms split as Ofgem boss calls for price cap rethink – City AM
15 August 2023, Nicholas Earl. Energy bosses are split over the role of the price cap in the UK’s retail market – with a seeming rift emerging between challenger suppliers and Big Six companies over its role in protecting households from high bills:
Link: https://www.cityam.com/energy-firms-split-as-ofgem-boss-calls-for-price-cap-rethink/
Publication: Ofgem’s response to DESNZ consultation on the Strategy and Policy Statement for Energy Policy in Great Britain – Ofgem
15 August 2023. This document comprises Ofgem’s response to DESNZ’s consultation on the Strategy and Policy Statement for Energy Policy in Great Britain. The consultation was published by the Department for Energy Security and Net Zero on 10 May 2023 and is seeking views on the proposed strategic priorities and policy outcomes set out in the strategy and policy statement:
Policy paper: Biomass Strategy 2023 – Department for Energy Security and Net Zero
10 August 2023. This strategy sets out the role sustainable biomass can play in reaching net zero, what government is doing to enable that objective, and where further action is needed:
Link: https://www.gov.uk/government/publications/biomass-strategy
Research & analysis: Ability of bioenergy with carbon capture and storage (BECCS) to generate negative emissions – Department for Energy Security and Net Zero
10 August 2023. Report by the Chief Scientific Advisor’s Task and Finish Group on the carbon dynamics of BECCS, aiming to establish an evidence-based position on its validity as a greenhouse gas removal option:
Publication: Supporting warmer homes for rural communities – E3G
9 August 2023, Juliet Phillips & Anna Peran. The cost of heating has long been a problem for families living off the gas grid in rural areas across the UK. The recent energy crisis has led heating bills to soar even further. The transition to efficient homes and clean heat could help alleviate some of the issues households face, as well as supporting climate and fuel poverty targets. To ensure a smooth, affordable and socially inclusive transition, policymakers must keep affordability and accessibility foremost in mind:
Link: https://www.e3g.org/publications/supporting-warmer-homes-for-rural-communities/
Insight: Why is cheap renewable electricity so expensive? – House of Commons Library
9 August 2023. The wholesale price of all electricity is set by the most expensive method of producing electricity, which is usually from burning gas:
Link: https://commonslibrary.parliament.uk/why-is-cheap-renewable-electricity-so-expensive/