So what’s it up to? No doubt the company is taking an old fashioned negotiating stance and asking for more than it wants, or would accept. It probably relishes the prospect of a referral to the Competition Commission, which might be more sympathetic to special pleading than Ofwat in the current climate. Thames also has to reassure its investors that it will be able to recoup the massive costs of the Tideway Tunnel as they are incurred, and in so doing, protect its credit rating. It is effectively spreading these costs three ways – the AMP6 settlement (and later price reviews), the proposed AMP5 recovery, and the specific levy that will hit customers later in the process. Thames risks the ire of the regulator – but it’s playing a long game.
Meanwhile, a Utility Week Freedom of Information request revealed that the government has spent more than £16 million to date on the Green Deal. The single household that has so far had work completed could have its cavity walls filled with gold for that!
On a more serious note, the Department of Energy and Climate Change (Decc) says it has no current plans for further marketing spend on the programme. It seems the energy industry has been handed responsibility for the Green Deal without the public sector support that should accompany a so-called flagship initiative. It’s tempting to conclude that Decc has already realised that the Green Deal is going to fall far short of its ambitions and is quietly distancing itself, limiting any further reputational damage or financial hit.
Ellen Bennett
This article first appeared in Utility Week’s print edition of 30th August July 2013.
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