The must-read stories of the week
From the future of the energy price cap to frustration over how water companies should approach affordability, there have been plenty of talking points from our coverage of the utilities sector over the past week. Alongside bill pressures for next winter are continuing questions over security of supply, with coal looking increasingly unlikely to play a role but gas storage capacity given a boost by an extension for the Rough facility. See below for these and other top stories from Utility Week.
Price cap plummets but 1.5 million customers risk losing out
As the energy price cap fell by £1,200 at the weekend, Utility Week revealed hundreds of fixed tariffs that now sit above that level – some of them by thousands of pounds. It has led to calls for retailers to be more transparent about when customers can switch and whether it would actually be cheaper for them to pay the exit fee.
Winter woe for ESO as Drax insists it’s too late to keep coal plants open this winter
National Grid Electricity System Operator was forced to admit defeat in its attempts to persuade Drax to submit its North Yorkshire plant to the winter contingency plan again this year. It raises further questions as to the ongoing use of coal in the electricity system, with two units having been fired up to cope with surging summer demand. Read more.
Further pressure on underfire water bosses as Ofwat clamps down on bonuses
The water regulator has said it will scrutinise all executive bonuses to see if they reflect company performance and has given itself the power to intervene if it has doubts. However, Ofwat does not believe this equates to “stepping into the decision-making role”.
Rough deal for Centrica after Ofgem green light
Energy security fears for this winter will be eased somewhat by the energy regulator’s approval for Centrica’s Rough storage facility to stay open until at least 2030. The energy giant has warned it would not be able to continue investing in the facility without such a commitment, resulting in “minimal gas in storage’ this winter.
Affordability plans remain in limbo as sector waits for Defra guidance
With just three months to go until draft PR24 plans have to be submitted, water companies are still in the dark about how government wants them to protect vulnerable customers. Defra has rejected calls for a single social tariff but has yet to suggest an alternative approach to targeted support. As part of our Action on Bills campaign we spoke to CCW chief executive Emma Clancy. Read more
