Principal, BFY Group | I help energy companies work through big strategy, policy and regulation questions
Southampton / London, UK
Joined July 2011
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Who should pay for the costs of the gas network as demand falls?
The Government have issued a call for evidence on the topic, with views requested by 23rd December.
Some thoughts 🧵
That means the evidence submitted is likely to decide how the options are weighted. Ofgem called the disconnection arrangements "transitional" last week, so the long-term answer is what protects recovery beyond it.
Gas networks have an opportunity over the next two months to shape that, e.g. with evidence on volumes, cost drivers and savings from area-based delivery and what should trigger a change.
Link to the paper: buff.ly/w2M88gB
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David Watson retweeted
China consumed more coal in the last four years (2022–2025) than the entire world consumed throughout the 19th century.
David Watson retweeted
🚨 NEW: John Healey is reportedly considering imposing a "green tax" on imported fuel like petrol and diesel in the Budget
[@Telegraph]
David Watson retweeted
🚨 NEW: Andy Burnham and John Healey are set to force the approval of Rosebank despite the Energy Secretary's reluctance
Minister: "Both Andy and John have decided Rosebank needs to go ahead. The economic and energy security case is so strong"
[@DPJHodges]
David Watson retweeted
Factcheck: How nuclear, gas, wind and solar power are affected during heatwaves | By @MollyLempriere w/ comment from @iain_staffell @CKRosslowe @HenryPreston1 @tadroustweets
Read here: buff.ly/yfvQnUS
In the face of some horrendous hatred and vitriol on this platform, this account is single-handedly making my experience a happier one.
My usual thoughts on energy will resume, but I really wanted to share this and share the happiness 👇
A world of no standing charges hastens the need for network charges that are based on the size of your connection, and not your consumption.
Without this, those with the money for solar plus batteries opt-out of paying for the network.
A case for wider reform.
There was a lot of interest in my earlier post on standing charges.
I've built this chart showing what the standing charge pays for today - in both gas and electricity.
The PM has asked for the gas charge to go.
The underlying costs remain though, will be collected elsewhere.
David Watson retweeted
Britain’s electricity supplies are expected to remain secure this winter. ❄️
Today’s Winter Outlook forecasts a 5.9GW surplus, equivalent to a 9.5% buffer above expected peak demand.
Hear how we consider 30,000 potential scenarios in our latest forecast. 👇
Winter Outlook: bit.ly/4zQIbYF
Ofgem aims to have a single framework covering disconnections from the gas network in place from 2031.
It has said little about what that framework will contain however, and much remains to be decided 🧵
Ofgem expects industry to bring forward proposals on handovers between suppliers and gas networks, and says it will act itself if none arrive.
It also encourages networks to put safety reforms to the Health and Safety Executive.
Networks that engage early on what the future framework looks like, and who pays for it (and how), will be better placed to shape the 2031 result.
Link to the Ofgem documents: buff.ly/sCmw4hs
Image in the first post via Cadent.
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