Five top stories this week
Iran conflict may make record CfD auction look like ‘excellent bet’
The government’s decision to procure a record amount of renewable capacity in the latest round of Contracts for Difference may look like an “excellent bet” if the Iran conflict leads to a sustained disruption to gas supplies. Adam Bell, director of policy at Stonehaven, said a prolonged increase in gas prices could also make it more expensive to buy further capacity in future auctions.
Four gas networks confirm CMA appeals against Ofgem
All four gas distribution networks have confirmed they are appealing elements of Ofgem’s final determination on their RIIO3 business plans. As first revealed by Utility Week, Cadent, Northern Gas Networks and Wales & West Utilities are all seeking a targeted appeal focussed on Ofgem’s approach to calculating productivity growth. SGN is also challenging the regulator’s productivity assumptions, as well as the econometric modelling underpinning the allowances set.
‘Same old mindset’: Ofwat rules put housebuilding and AI targets at risk
Water companies have warned Ofwat that the complexity of a forthcoming demand-growth reopener could have a "chilling effect" damaging the government's housebuilding and artificial intelligence (AI) ambitions. Water UK regulation director Jeevan Jones told Utility Week revisions made by the regulator in February were "nowhere near" enough to allay its concerns.
DNOs could be forced to fund and install solar and batteries under Ofgem plan
Ofgem has proposed that Distribution Network Operators (DNOs) fully fund and install low-carbon technologies (LCTs) in domestic homes. This is one of the three options Ofgem has suggested in its latest consultation aimed at giving DNOs “extended roles” in rolling out LCTs, primarily batteries and solar.
NESO will not ‘stop the clock’ while dealing with connection offer queries
The National Energy System Operator (NESO) will not “stop the clock” on the 90-day window for accepting a Gate 2 connection offer, even if it includes an error that needs to be resolved. Explaining the arrangements during one of its regular webinars, NESO head of connection operations Nicola Bruce therefore urged developers to submit any queries within four weeks of receiving an offer.
