Regulation and policy

  • Announcement

    The Energy Security Bill explained – from the Queen’s Speech

    On Wednesday 11 May, the Queen's Speech was delivered which announced that an Energy Security Bill will be introduced at some point over the next parliamentary session. What is the Energy Security Bill and what does the Government state the benefits will be? https://www.youtube.com/watch?v=vLfmkM0mAqc What are the main elements of...

  • Commercial and market outlook

    Cornwall Insight responds to the announcement of an Energy Bill in the Queen’s Speech

    The Queen’s Speech this week included a much-anticipated announcement that an Energy Bill will be introduced at some point over the next parliamentary session. The Bill is a logical conclusion of policy development in the period since the net zero commitment was made in the summer of 2019. It accommodates...

  • Business supply and services

    Ofgem reaches conclusion for the Microbusiness Strategic Review

    The Microbusiness Strategic Review came to a close on 28 March 2022, with four finalised proposals from Ofgem that aim to protect microbusiness consumers and create a more robust framework through which the market can operate. Following the unprecedented rise in wholesale prices and recent geopolitical events, these changes are...

  • Business supply and services

    Re-balancing the balancing costs –BSUoS charges to be levied solely on suppliers from April 2023

    Balancing the electricity system costs money. National Grid in its role as Electricity System Operator (ESO) takes actions in every half hour to achieve the remarkable feat of keeping supply and demand finely balanced on our national electricity system – maintaining a system which runs between 49.8 and 50.2Hz with...

  • Commercial and market outlook

    Ofgem outlines thinking on protecting credit balances and RO payments

    This article is an extract from our Energy Spectrum publication issued on Monday 25 April. If you are interested in receiving critical policy, regulatory, market and transactional developments across the energy sector, and would like a free full sample of Energy Spectrum, please request a copy here. You only need...

  • Low carbon generation

    Reform in haste, repent at leisure: squaring electricity market reform with investor confidence

    The review of electricity market arrangements (REMA) signalled by the energy security strategy could impact wholesale & balancing markets, & there could be a need to examine the capacity market rules & CFD contracts. It is too early to know what options will ultimately be adopted or when changes would...

  • E-mobility and low carbon

    Expanded guidance provides more clarity on electricity supply to EVs

    In a burgeoning EV-centric world, Ofgem’s updated guidance on supplying electricity to electric vehicles (EV) should provide clarity for many organisations around the supply arrangements in place for different charging scenarios. Due to their mobile nature, EVs don’t fit in with the legislative model that defines an electricity consumer by...

  • Regulation and policy

    Safety first: UNC modification addresses Ofgem’s concerns over derogations

    On 21 January, Ofgem announced that it was rejecting a modification that would have introduced the concept of derogations into the gas Uniform Network Code (UNC). Since then, a new proposal has been raised, with the intention of addressing the regulator’s concerns around safety aspects and the approval process. Derogations...

  • Regulation and policy

    New obligations for gas suppliers under the GGL

    The Green Gas Support Scheme (GGSS) was launched on 30 November 2021, which aims to financially support producers of biomethane through anaerobic digestion. The scheme will be funded through the Green Gas levy (GGL), by placing an obligation on all fossil fuel gas suppliers, with the exception of those that...

  • Regulation and policy

    REC – The story so far

    Version 2.0 of the Retail Energy Code (REC) went live on 1 September 2021. The latest version, which energy suppliers and providers of REC governed services must follow, builds on the initial transitional requirements of Version 1 by consolidating a number of existing market rules including the electricity and gas...

  • Business supply and services

    2021 top energy insights

    View our 2021 top insights; the top podcast, insight paper, 'Chart of the week' and blog. Click the boxes below to read the full articles. You may need to log in or create a free Cornwall Insight to continue reading. Download

  • Commercial and market outlook

    2021’s most exciting ‘Charts of the week’

    Some of our team have looked back throughout 2021 and picked their most exciting 'Chart of the week'. Read about their choices and click through to read the full 'Chart of the week'. To do so, you need a free Cornwall Insight account which is easy to create here. Green...

  • Commercial and market outlook

    Price cap set for 46% rise for Summer 2022, Winter 2022-23 cap may exceed £2,000

    Following further highs in wholesale prices and the costs associated with the raft of supplier failures seen in the last few months, Cornwall Insight is forecasting that the domestic default tariff price cap for Summer 2022 will increase to approximately £1,865 per annum for a typical dual fuel customer, with...

  • Heat networks

    Heat network approaches being developed by devolved administrations and UK government

    A number of further consultations on the policy approaches for heat networks have been issued in recent weeks:  The Scottish government published its draft Heat Networks Delivery Plan on 15 November, outlining how it will quintuple heat demand provided from heat networks in Scotland by 2030; and The UK government issued...

  • Power and gas networks

    New Fault Ride Through compliance arrangements introduced for transmission-connected generators

    Ofgem approved Workgroup Alternative Grid Code Modification 1 (WAGCM1) of GC0151 Grid Code Compliance with Fault Ride Through (FRT) Requirements on 5 November. In short, this decision introduces a new, legal process, into the Grid Code – the legal text that governs those connecting to the electricity transmission system -...

  • Regulation and policy

    Just the bill please – who picks up the costs of market exits?

    This article is an extract from our Energy Spectrum Nutwood. find out more about a subscription to Energy Spectrum here. Between 9 August 2021 and 19 November 2021, 22 energy suppliers exited the market impacting more than 2mn mainly domestic customers. Supplier exits result in a number of costs being...

  • Regulation and policy

    Keeping an eye on compliance

    In response to the rising wholesale energy prices, Ofgem published a letter on 29 October setting out the steps that it is taking to protect the short- and long-term interests of consumers. In addition to its intention to consult this month on the current price cap methodology, Ofgem set out...

  • Regulation and policy

    Net Zero Strategy and Budget reaction with Craig Lowrey

    Yesterday, at our 'Net zero business forum', senior consultant Craig Lowrey gave his reaction to energy aspects of the UK budget and the flurry of policy announcements that preceded it. https://www.youtube.com/watch?v=Zeldg2yG09M Our 'Net zero business forum' Our online bi-monthly 'Net zero business forum' offers members the opportunity to benefit from...

  • Net zero corporates and ESG

    The stakes are higher than they seem: the current energy challenge and net zero

    It has been an incredibly challenging week in the UK energy sector, and attention has rightly focussed on consumer protection, and indirectly on the state of the energy supply markets. However, it would be a mistake to believe that the ramifications of supplier failure will be limited only to this...

  • Announcement

    ESB and Cornwall Insight Australia provide final advice to energy ministers

    Last week, the Energy Security Board (ESB) released its recommendations for the redesign of the National Electricity Market (NEM). Cornwall Insight Australia (CIA) was engaged by the ESB to assess the potential benefit of the proposed essential system service reform package for system strength provision. The report detailed that these...

  • Home supply and services

    “Green” tariffs in the spotlight as BEIS commences review

    With the announcement on 16 August of a call for evidence on Designing a Framework for Transparency of Carbon Content in Energy Products, consultant Josephine Lord looks at the issues being considered and what the future may hold for so-called “green” tariffs. The call for evidence is the first step...

  • Regulation and policy

    How will consumers take to Market-wide Half Hourly Settlement?

    Ofgem published its decision to implement the move to Market-wide Half Hourly Settlement (MHHS) on 20 April. This confirms plans to move to new settlement arrangements over a four and a half year time period, with the Elexon-led Design Working Group’s Target Operating Model to be used as the blueprint. Meters...

  • Regulation and policy

    Ofgem raises modifications ahead of RCC and new switching arrangements

    The latest edition of our Faster Switching Service Report due to be issued this week includes the latest developments in Ofgem’s Switching Programme and the associated Retail Energy Code (REC). Launched in November 2019, the Retail Code Consolidation (RCC) Significant Code Review (SCR) set out Ofgem’s intention to amalgamate the...

  • Regulation and policy

    Calm before the storm? 2021 energy supplier compliance developments

    The latest update to our Energy Supplier Compliance Portal went live on 4 May and includes changes to the compliance landscape during February to April 2021. While the previous quarter’s update reflected new principles resulting from Ofgem’s Supplier Licensing Review (SLR) and protections for prepayment meter customers facing self-disconnection, Q121...

  • Regulation and policy

    Electricity transmission charging reform – overtaken by changing priorities?

    Charging for the transmission network is never out of the development process for long. From major reviews, such as that initiated under Project Transmit in 2010, to significant reforms such as removing the triad benefit from distributed generation in 2018, and a host of smaller developments, change seems the only...

  • Low carbon generation

    Why energy system governance is not fit for purpose

    In my recent blog, the Emperor’s new clothes I referenced a poll of our Financing Net Zero (FNZ) membership which revealed 75% support for an energy systems architect to ensure we manage the net zero transition. In the spirit of independent thinking that Cornwall Insight is known for, I respectfully disagreed and...

  • Announcement

    What’s changed? Celebrating 750 issues of Energy spectrum

    Today marks 750 editions of Energy Spectrum, our flagship publication which covers news and insight on the energy market. To celebrate, we present six Energy Perspectives from past publications, going as far back as 2005, which we believe still have relevance today.  Issue 4 – ‘Smart metering’ - Energy policy’s missing...

  • Regulation and policy

    Answers to some FAQs about Brexit

    Following the end of the transition period on 31 December 2020 and the signing of the Trade and Cooperation Agreement, aspects of the relationship between UK and the EU in respect of the arrangements for energy trading and cooperation have changed. We set out answers to some Frequently Asked Questions...

  • Business supply and services

    Energy suppliers must be ready to demonstrate compliance with new principles

    From 22 January, energy suppliers were required to follow new principles resulting from Ofgem’s Supplier Licensing Review (SLR), which initially kicked off nearly three years ago. Such was the breadth of the SLR, changes were introduced in two rounds, with the first round of changes bringing the introduction of tougher...

  • Regulation and policy

    Ofgem “hands-on” in RIIO-2 as net zero route unfolds

    During the next round of the RIIO price controls, Ofgem can be expected to take a more hands-on approach to outputs the networks are required to provide and the allowed revenues they can charge their users or consumers. This will have impacts for network development including the enabling of electric...