In this week’s Energy Perspective, we consider Ofgem’s tightening of the rules for becoming an electricity supplier with company entry checks and fit and proper persons tests. We commend the regulator’s proposals but flag that it will be tougher for it to define and monitor an ongoing performance monitoring regime.
In policy we address BEIS’s much-anticipated updated long-term energy projections. They show that while the UK remains on track to meet its third carbon budget – to reduce emissions by 37% compared to 1990 levels by 2020 – it is currently off target to meet its fourth and fifth carbon budgets, and by a larger margin than was previously forecast.
In regulation we review Ofgem’s latest update on its compliance and enforcement activities. We argue that the review is useful in demonstrating Ofgem’s focuses, how it interprets and enforces the standards of conduct and the changing compliance environment and should be required reading for all suppliers.
In Industry Structure we review the latest Cornwall Insight Index of Domestic Energy Supply Costs which shows how the latest network and policy charges have put upward pressure on both electricity and gas bills, offsetting downwards pressure from weaker wholesale markets.
In this week’s Nutwood, Cornwall Insight Associate Peter Atherton discusses how Danish energy company Ørsted has bucked the trend of weak energy sector share prices through its ability to deliver significant offshore wind projects.
