The head of the Parliamentary committee that holds DECC to account has launched a scathing attack on the Department which he says is held captive by the treasury and lacks a coherent strategy. Speaking at an energy storage event hosted by the Renewable Energy Association (REA) in London, Energy and Climate Change Committee chief Angus MacNeil criticised the “pennywise and pound-foolish” cost-cutting approach taken by DECC in recent months. “Reason does not work with this Government,” said MacNeil. “They have a mantra, an obsession with balancing the books. They are like a farmer who thinks that seeds in the springtime are an unnecessary extravagance.
Edie 21st Jan 2016 read more »
We, the Energy Policy Group of the University of Exeter, welcome the NIC’s investigation. We argue that the fundamental problem for GB energy infrastructure and the balancing of supply and demand within markets is that the current GB governance system is not fit for purpose. IGov, a project within the EPG, has put forward an alternative governance framework (as shown in Figure 1, 2 and 3). We believe if this governance framework were put in place, competition between the various energy resources – whether they be demand side or system capabilities, such as interconnection or storage – would be improved, as would operation, security and environmental outcomes. We would also see this as the long term cost minimisation strategy to meet the GB carbon commitments. The transformation to an energy system capable of meeting the environmental, security and social goals – and the infrastructure and market needs of that – should be overseen by an Independent and Integrated System Operator (an IISO), as the technical executor of Government policy. It should be a state owned not for profit IISO created from the SO functions of National Grid. This alters the balance of power between institutions in the GB energy system. We do not believe that Ofgem should continue with multiple competing Duties. It should revert to being an economic regulator. These two institutions should be on the same level of institutional hierarchy.
IGov 21st Jan 2016 read more »