Planning, not regulation main obstacle for UK renewables: OFGEM

London (Platts)--29Mar2006

Planning is more of an obstacle for the development of UK renewable
energy sources than the regulatory system, the chief executive of energy
regulator OFGEM, Alistair Buchanan, said Tuesday.
OFGEM is ahead of the country's planning authorities, he said, having
approved the investment plans of four major renewable projects that are now
held up at the planning stage.
OFGEM is trying to be pro-active about renewables and will call for
industry views on whether the "first come, first served" model is best for
developing more projects. "We are opening up the debate this week," said
Buchanan. "We think that the government will find it much harder to resist
intervening in the next stage of price reviews."
Speaking at the Future of Utilities conference in London, the OFGEM CEO
also said the regulator would not give a view on rumored merger activity in
the UK until "the best time for the consumer." Amid discussion of whether the
regulator should favor national champions, Buchanan remained reserved. "We
want to maximize our punch. That is when we will give a view."
The issue of foreign acquisitions was high on the discussion list at the
conference, with a straw poll of attendees revealing general disdain for any
government protection of national companies against foreign takeover. Asked to
order a list of "issues of the day," industry representatives placed the
environment and security of supply above a range of alternatives, closely
followed by mergers, acquisitions and competition.
Buchanan said OFGEM did not have a competition remit, although it does
"want to give consumers confidence that price rises do not come from market
abuses." He said the regulator was satisfied that the retail market for energy
is competitive, but that it was looking into why several small suppliers had
gone bust recently. "But we are concerned to know more details of their
business," he said. "We want to know whether the problem was really price
volatility, or whether the problem was their corporate structure."


 

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