This is an excerpt from the minutes from our meeting in October 2018
1. Proposed Changes to Electricity Network Charging
i) Firmness: connection agreed and no-one can mess with it. Might be wiling to reduce demand with notice (therefore becoming a flexible connection (for less money))
ii) Time profile: similar to the firm option, but flexible only within fixed timescales (eg when your building is closed)
iii) Fixed duration: limited agreement (eg 15 years) then renegotiated – good for leaseholders.
iv) Short-term access – only connected for a limited time (eg temporary installation)
v) Shallow access: to do with generation
2. New (Voluntary) Emissions Reporting Scheme
CRC goes next year. The private sector will have a streamlined reporting process through their financial returns to Companies House. For the public sector, BEIS has introduced a voluntary Emissions Reduction Pledge: it is likely that this will become mandatory post-Brexit with transport and Scope 3 added in. Don’t let this monitoring slip – it’s important!
3. Medium Combustion Plant Directive (and Specified Generators Regulations)
This is a European Directive to control CO2, SOX and particulates. It covers anything that burns – eg diesel back-up, CHP – from 1-50MWth. It applies to new plant from 20.12.18, which must be registered with the Environment Agency, and will apply to all existing plant above 5MW from 2024. The Directive requires you to monitor and report on emissions: urban targets are stricter than in rural areas. Everyone will have to comply, unless the system is properly only used for back up (<50hours/year)
Very little will change with regard to gas and electricity trading and carbon capture, even if there’s no deal. The carbon floor price (as specified in the EU ETS) now flows into HMT: further details will be in the budget.
5 Unidentified Gas
Until last year, Ofgem kind of guessed how much gas was lost in the system and we all contributed. The introduction of a new computer system highlighted that the old calculations had been way out. A new method is being introduced (which will appear as a new line on gas bills) but the results are highly variable, and suppliers are having difficulty communicating about it. The suppliers, led by Total & Gaz Prom, are getting together to lobby Ofgem to stick with the old calculation method until the new method is improved. A task group is being set up.
6. Also look out for…
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