The lack of any coherent long-run plan for addressing a highly intense and long-lived greenhouse gas, SF6, commonly used as an effective insulator in electricity substation equipment, is problematic. In this commentary, we argue that Distribution Network Operators, the firms that own and operate the lower-voltage networks, must establish a common reporting methodology proposed by Ofgem - both for SF6 leakage and for their SF6 inventories. This is too fundamental to ignore.
Energy losses – the cost and carbon impacts of energy that is lost as it flows across the networks to the end-customer, is a vital but overlooked area that needs tackling. It accounts for around 15-20% of customer electricity network bills and around 1.5% of the UK’s carbon emissions. What particularly concerns us is that there is no clear ‘ownership’ of distribution losses.
While generally supportive of the substance behind the Business Plans, we call for far more consistent metrics. Affordability is a critical customer issue, but the focus on short term bill impacts should not lead Ofgem to cut back on investment to improve resilience. Two areas that need further attention are energy losses and the greenhouse gas SF6, commonly used as an effective insulator.
Sustainability First has been a strong advocate of innovation funding in the energy and water sectors. We hope that the following points are helpful as Ofgem learns from past experience with the Network Innovation Allowance (NIA) and the NIC and considers its future approach to the Strategic Innovation Fund (SIF).
A coherent response is needed to the energy crisis which is both fair and delivers net zero. We set out the need to actively engage civil society and argue for urgent energy efficiency investment. We explore options for providing social protection both short-term to help people this winter and medium to longer-term to ensure retail energy markets are fit for the future.
As customers face an ongoing energy crisis there is an urgent need for targeted financial support. But the crisis has also underlined the need for wider energy savings and efficiency including a push for home insulation. This would not only help households struggling this winter but is essential in tackling the pressing challenge of climate change and the net zero transition.
This technical paper is a welcome expert contribution and 'explainer' from Dr Chris Harris. It sets out basic economic considerations in energy supplier hedging and discusses how these may interact with energy volumes, wholesale prices and the price-cap in a period of major uncertainty. He raises important questions about our near-term readiness and resilience for a cold winter and he stresses the short and longer-term imperative for energy saving.
This briefing paper aims to stimulate discussion about the principles that should underpin decision making by policy makers, regulators, companies, investors and others in essential services to support the transformational shift taking place towards sustainability.
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