Customers urged to save the country’s water, and their own money
Investors give stark warning to Ofwat over ‘harsh’ price review
Cyclists to have facilities upgraded
Ofgem publishes a comprehensive review of Britain’s energy supplies
Commission puts consumers first
Customers urged to save the country’s water, and their own money
OThe UKs ‘water wasters’ are being urged to cut their usage by 20 litres a day in a new campaign by the Department for Environment, Food and Rural Affairs (Defra).
Defra estimates that average daily water use is 150 litres, and called for savings as part of a campaign to
‘Act on CO2’.
Warning that the UK was a drier country than people realised, environment minister Huw Irranca-Davies said: “If we don’t act now we could lose some of our precious biodiversity... continued wasteful consumption of water is harming our climate for future generations due to the energy used in the supply process.”
Meanwhile, the Consumer Council for Water has told customers to cut their water bills by switching to a water meter and reducing water waste. It also urged customers to check they were not overpaying – if they had a septic tank, for example..
Investors give stark warning to Ofwat over ‘harsh’ price review
Ofwat has been accused of making up its mind on prices for water company draft determinations without reference to their business plans. The charge was made by investors surveyed by Indepen for industry association, Water UK.
More than half the investors interviewed by Indepen said they thought Ofwat had already decided that it wanted average bills to be flat between 2010-2015.
One equity investor said Ofwats decision was ‘not an evidence-based draft determination, but decided on the basis of no bill increases for customers’. This view was shared by eight out of 13 equity investors interviewed and half the debt investors.
They saw it as part of a perceived lack of transparency in the price review. Indepen pointed out that at the last price review, Ofwat had published summaries for each company showing which schemes had been excluded. This information was lacking this time.
“A substantial proportion of those interviewed expressed concern that the regime was no longer transparent and trustworthy,” Indepen said.
Some felt Ofwat had made trade-offs for short-term price cuts. One said: “The regulator should be clear about the new policy – selling the future for short-term benefits – so it can be held accountable for its decision.”
Eleven of 14 equity investors said the sector was now less attractive and four said they would not be investing again. “We will not invest again in UK infrastructure. There is a witch-hunt for investors and Ofwat is determined to push down returns,” one said.
Debt investors were less worried by the determination, with five out of eight saying their view of the sector was unchanged. However, one complained: “The draft determination has caused angst and concern at a senior credit committee level about the sector, and also
Cyclists to have facilities upgraded
Transport Secretary, Andrew Adonis, has launched a major £14m package to transform facilities for cyclists at railway stations and encourage healthier, greener travel.
Over the next two years a series of measures, including ‘Cycle Hubs’ at 10 major rail stations and 10,000 extra cycle parking spaces across the country will be introduced by Government, Network Rail, Cycling England and train operators. The new cycle hubs will include extra cycle storage facilities, repair services, hire schemes and improved cycle access to and from the stations.
The projects announced include:
- £5m for fully supervised cycle hubs, offering a range of facilities for cyclists including secure covered parking, cycle hire, information, retail and repair at 10 stations. These include Leeds station (which will be completed by May next year) and London St Pancras, London Victoria, London Waterloo, Grimsby, Hull, Liverpool Lime Street, Scunthorpe, Sheffield and York (all to be opened within the next two years).
- £3m for over 4500 additional cycle park spaces at nearly 350 stations across the country, including Nottingham, Stevenage, Cambridge, Exeter, Scarborough, Sunderland, Barrow-in-Furness, Crewe and Middlesbrough.
- £4m from Cycling England for four Train Operating Companies – Merseyrail, Northern Rail, South West Trains and Virgin Trains – to transform the cycling facilities up and down their network to become flagship ‘Bike ‘n’ Ride’ train operating companies.
- £2m which will improve cycle access at railway stations to ensure that bike users can get to and from the station conveniently and safely, and to improve cycle facilities across the rail network as opportunities are identified.
Ofgem publishes a comprehensive review of Britain’s energy supplies
Energy regulator Ofgem has highlighted the challenges to Britain’s gas and electricity supplies. Chief among these challenges are a growing exposure to a volatile global gas market and power stations nearing the end of their life.
Ofgem has drawn up four energy scenarios to assess the energy security risks over the next 10-15 years. They reveal a range of potential risks to supplies when exposed to shocks. Further, Ofgem identifies the need for investment of up to £200 billion in power plant and other infrastructure over the next ten years to secure both energy supplies and climate change targets. The need for this investment arises at a time of volatile world energy prices and Britain’s increasing dependence on gas imports.
Ofgem chief executive, Alistair Buchanan, said: “Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets. However, there is still time to act. Ofgem will be putting forward proposals in the New Year based on the consultation to ensure that Britain’s energy industry can meet the challenges ahead.”
Ofgems three scenarios highlight a number of risks:
- Britain will face significant levels of gas imports, in particular for gas power plants to replace lost nuclear and coal-fired capacity. This increases our exposure to uncertainties in the global gas market, supply disruptions and potential price increases.
- Significant changes in the way in which we generate and consume power may be needed to manage the variability associated with increasing reliance on wind power.
- Given the massive levels of investment needed, there is a high likelihood of rising consumer bills, especially if oil and gas prices continue their underlying rise since 2003
Commission puts consumers first
Two European Commissioners were in London on 29 September for the opening of the second meeting of the Citizens’ Energy Forum. The Forum has been set up to tackle problems faced by energy consumers across the EU, and to propose practical solutions. Organised by the European Commission, it brings together consumer associations, industry, national regulators, and national government authorities to work on key issues such as billing, smart metering or protecting vulnerable consumers.
“A gas or electricity bill should be the best indicator of energy consumption for the average consumer, the bills must be simple, accurate and allow comparisons between providers. Accurate billing is an important issue for consumers. Energy companies are invited to make their bills better understandable, more frequent and based on actual consumption,” said EU Consumer Commissioner Meglena Kuneva. Her colleague, EU Energy Commissioner, said: “It is essential that we work closely together to promote the interests of consumers. We need to deliver real results that make a difference.”