Five things we learnt from Energy Spectrum | 657

An increasing number of interventions, including new mutualisation events, are likely to cause shocks in energy third party charges in the coming years. That is the conclusion of this week’s Energy Perspective, in which we explore the current level of these costs for policy and networks, focussing on changes for the 2019-20 financial year.

As part of the Offshore Wind Sector Deal, BEIS announced measures designed to deliver one-third of UK electricity being generated from wind by 2030. In this week’s Policy section, we look at the deal and see what impact it could have on the sector. While reaffirming the government’s previous commitments to the sector, there was little new here offered that would drive much-needed renewables investment.

BEIS and Ofgem launched their joint retail market review, looking at how to support effective competition once the price cap comes to an end. However, the mood from Ofgem and BEIS on the day of the launch event suggested that price caps will remain until at least 2023.

Trade associations have concerns about the impact Ofgem’s proposed Targeted Charging Review could have on flexibility and storage. In this week’s Regulation section, we agree that Ofgem needs to look much more closely at the distributional impacts of its proposals on different technologies and types of participant in the long term.

Digital banking innovations could open up a new space for energy intermediaries, with digital bank Monzo’s partnership with Octopus Energy the latest in a series of developments. In this week’s Industry section, we start with the Monzo-Octopus Energy partnership and go from there to see how bill management and automated switching have the potential to radically alter the relationship between customers, suppliers, and the energy market in general.

Related thinking

Home supply and services

Reforming Energy Bills: What’s on the Table?

There has been much speculation in the energy industry over what reforms to household energy bills could potentially be introduced, particularly with Ofgem due to announce its Q3 (July – September) 2024 Default Tariff Cap figures on Friday (24th). With so many areas under review, we’ve put together an overview...

Low carbon generation

Blowin’ in the Wind: Is offshore wind the answer to Ireland’s net zero future?

As Ireland works towards achieving net zero by 2050, there is a pressing need to develop additional renewable energy capacity. Offshore wind is likely to be a particularly important sector and, thanks to Ireland’s large offshore exclusive economic zone, presents a valuable opportunity for the Irish economy. Cognisant of this...

Low carbon generation

Latest developments in the TPI space

We recently published our 2023 Annual TPI report which provides an independent review and analysis of the market for TPIs, and the services provided by them. The report also looks at the current challenges and opportunities for TPIs, such as regulatory changes, competition with suppliers, and diversification of services. 2023...

Regulation and policy

Calm after the storm although transition begins to lag | 2023 year in review

This year saw a return to relative calmness after the energy shocks of last year, while governments are playing an increasing role as the rate of new renewable generation lags. Spot pricing was subdued compared to last year, with no significant unexpected outages that caused sustained price spikes. Higher levels...

Net zero corporates and ESG

Race to net zero: Rebuilding investor confidence in the UK

In our recent insight paper “Race to net zero: Rebuilding investor confidence in the UK”, published on 30 November, we discuss how increased macroeconomic pressures and rising international competition for capital have impacted the UK’s ability to secure investment in renewables and maintain momentum towards net zero. We also investigate...

Regulation and policy

What’s going on with REGOs?

Renewable Energy Guarantees of Origin, more commonly referred to as REGOs, are certificates issued to accredited renewable generators for every MWh of electricity they produce over a year period. The initial intentions of these certificates were to provide suppliers a means to prove the level of renewable generation they received...

Home supply and services

Ofgem strives to improve consumer experiences across both the domestic and non-domestic sectors

Over the last week, a number of anticipated publications were issued by Ofgem that hold the potential to make a significant change to the requirements on both domestic and non-domestic suppliers. The findings of Ofgem’s non-domestic market review were revealed, alongside a policy consultation on the options available to address...

Energy storage and flexibility

Waiting to connect: the problems and solutions for network connection queues (Part 2)

Network connection queues continue to be a notable topic of interest as many generators face significant delays to project development – an issue that is directly conflicting with net zero ambitions and recent focuses on strengthening domestic energy supplies. In Part 1 of our two-part series on connection queues we...