Policy & regulation

Latest updates and analysis on how government and regulators' decisions will impact the sector 

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Ofgem has approved more than £20.9 billion of spending by electricity distribution networks as part of its draft determinations for the RIIO ED2 price controls. The figure is down by £4.3 billion – or 17% - from the more than £25.2 billion of total expenditure allowances requested by distribution network operators in their business plans submitted in December. The regulator has also confirmed the baseline returns for investors for the five-year price controls, which begin in April 2023.
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The secretary of state for energy has hinted that a wide-ranging reform of the wholesale power market is on the cards, after telling MPs that the price of electricity cannot “forever” be linked to that of gas.
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The Office for Environmental Protection (OEP) has announced its first investigation will be to determine the respective responsibilities of Defra, Ofwat and the Environment Agency with regards to the monitoring and regulation of combined sewer overflows, and whether or not they have each fulfilled their regulatory duties. The body’s chief regulatory officer Helen Venn said the probe could lead enforcement activity as well as broader actions to improve legal and regulatory systems.
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Featured

Utility Week is poised to launch a new flagship event that will take a fresh approach to debating the competing objectives of affordability, sustainability and resilience. Hear from the leaders of Eon, Ofwat, UK Power Networks, and Yorkshire Water as well as some new voices joining the debate.
Market insight
The inaugural UK Utilities Risk Report, from Utility Week and Marsh, highlights the key issues keeping sector leaders awake at night. From cybersecurity to policy and regulatory blockers, extreme weather and price volatility, this report presents a snapshot of the key concerns for utilities.
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A major new report proposes key reforms to enable the energy retail market to deliver for customers and net zero. It examines where action can be taken now on easing affordability pressures, evolving regulation and wholesale markets and ensuring a healthy, competitive energy retail market.
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Latest in Policy & regulation

The gas industry has warned Ofgem that its proposals for the immediate reform of the gas cash-out regime in an emergency could backfire and cost consumers more.
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The solar sector remains deeply divided over the continuing feed-in tariff (FIT) wrangle, with some firms arguing that a drawn-out legal challenge and appeal process is more damaging for the industry than the proposed cuts.
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THE European Commission has drafted a plan ensuring cash-strapped international nuclear fusion project ITER would have funding of Euro EUR2.573 billion from 2014 to 2018.
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Gas network companies have warned the government that there is a "policy void" on the future for gas in domestic heating, as they prepare to commission a study looking at the costs and other implications of replacing gas with low-carbon electricity for domestic heating.
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In a water white paper published last month, government pledged to shake up the way we value water. Does it go far enough? How will it work in practice? Join our expert panel for a live webchat, starting at 3pm. You should see a "Cover it live" box embedded immediately below, where the discussion will take place. You will be able to add your own comments as the discussion proceeds.
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