Ofgem boss calls for truce in row over electricity market overhaul

A picture


The head of Britain’s energy regulator has called for an industry truce in the deepening row over plans to overhaul the electricity market,A decision on whether to replace the country’s single electricity market with several market zones, each with their own price, is expected within weeks,It could mean that homes in areas where there is an abundance of electricity generation will pay lower prices than those in areas of high demand and low generation capacity,But as the decision – to be taken by the energy secretary, Ed Miliband – approaches, energy organisations have ratcheted up their opposing campaigns in what sources have described as one of the energy industry’s “ugliest” drives in years to pile pressure on the government,The campaigns have included contradictory paid-for research by third-party consultants, opinion surveys and coordinated open letters to government departments in the hopes of swaying the debate.

The row, which has been particularly lively on social media, prompted a rare intervention by Ofgem’s chief executive this week against “lobbying on polarised positions”.Instead, Jonathan Brearley urged companies to hold “an honest conversation” about the plans.The proposals have been divisive in the industry, with those in favour of the change – including Octopus Energy, the UK’s biggest home energy supplier – arguing a series of zonal markets could create a more efficient energy system with less waste and lower bills.Those opposed – which include some of the biggest renewable energy developers – fear that a radical upending of the market risks undermining green energy investment at a crucial juncture for the government’s clean energy investment ambitions, which could ultimately wipe out potential savings on bills.Energy companies are planning to spend more than £70bn by the end of the decade to rewire Britain as part of the shift to clean energy, and as more households switch to electric cars and heat pumps.

“This has been the most bruising debate to play out in the energy industry in the last 15 years,” an industry source told the Guardian late last year.“I’ve fallen out with people; there have been some very nasty arguments.”Brearley told an industry conference: “I recognise there are a lot of divided views about the way forward.There are clear benefits of a zonal system, but equally there are risks that any change undermines investment and drives up costs.”“We need to balance system efficiency, with the lowest cost of investment, and the needs of the customers we serve.

”The call for calm came after Brearley raised eyebrows in the industry earlier this year by coming out in favour of zonal energy pricing.He later said his views were personal, rather than that of the organisation.“I have my preference, but thankfully this decision that will be made by the secretary of state,” Brearley said.“And, ultimately, when the secretary of state decides, let’s get behind that and deliver for customers.”
politicsSee all
A picture

Reeves to make case for trade deal in first meeting with US treasury secretary

Rachel Reeves will fly to Washington next week to meet her American counterpart for the first time, as the British government looks to intensify negotiations over a UK-US trade deal.The chancellor will be in the US from Tuesday to Friday for the spring meetings of the International Monetary Fund. At the heart of her visit, though, will be talks with the US treasury secretary, Scott Bessent, whom British officials regard as one of their most likely allies in negotiating a deal.With Donald Trump talking about coming to the UK for a state visit in September, officials are increasingly hopeful they can agree tariff reductions in the coming months or even weeks.The US president and Keir Starmer spoke to each other by phone on Friday afternoon, with trade top of the agenda

A picture

Green party candidate tries to evict Labour opponent from property

A Green party council candidate is attempting to evict his Labour opponent from a house he owns using a no-fault notice, despite his party supporting a ban on exactly such kinds of eviction.William Pedley, who is standing for the Greens in the Victoria ward of North Northamptonshire council, has served a section 21 notice on his tenant and political rival Kelly Duddridge, who has lived in the property for 10 years.Duddridge remains in the property but says the threat of eviction has caused her and her family significant stress, while Labour has accused Pedley of hypocrisy given his party’s opposition to no-fault evictions. Other Green party politicians have been accused of showing hypocrisy by calling for more clean energy while opposing solar farms and electricity pylons in their local areas.Duddridge told the Guardian: “I am trying not to think about having to move away from the house

A picture

British Steel on a razor’s edge: inside Starmer’s Scunthorpe rescue mission

By next weekend, a cargo ship carrying more than 50,000 tonnes of coking coal from Australia will dock at Immingham. In other circumstances, its arrival would be unremarkable. But the moment Navios Alegria reaches the Lincolnshire port will be the culmination of the government’s high-wire act to keep the UK’s last steel furnaces running.MPs were recalled from their Easter recess last Saturday to pass emergency legislation handing the government control over British Steel, which operates Britain’s last two blast furnaces capable of producing steel from scratch using coke and iron ore.Long-running talks between the government and Jingye Group, the Chinese conglomerate that owns the Scunthorpe plant, broke down 10 days ago after executives declined an offer of £500m to keep the furnaces running

A picture

What to look for in May’s local elections: Tories on defensive and Reform hoping for gains

The English local council elections on 1 May are a big test for the three parties almost tied in the national polls: Labour, Reform and the Conservatives. The Liberal Democrats will also be hoping to do well in areas where they are strong and have a big aim of displacing the Tories as the second largest party in local government.As the polls suggest, the contest is wide open. The Conservatives are in the worst position as they are defending the most seats in more than 900 wards, which they won at the high-water mark of Boris Johnson’s popularity in 2021. Of the 23 authorities holding elections, 19 are controlled by the Conservatives and just one by Labour, with the others under no overall control

A picture

Ken Burley obituary

My friend Ken Burley, who has died aged 80, was a town planner with a public service ethos. A member of the Royal Town Planning Institute, he worked professionally in local authorities and voluntarily in numerous capacities.From 1974 to 2004 he worked for Doncaster metropolitan borough council, progressing from assistant chief planner for development plans and research to retire as head of planning services and acting head of strategic development. His work helped steer the borough through significant land use and social changes as the local economy pivoted from coal mining towards alternatives.Ken led the team that wrote the borough’s unitary development plan, creating strategic and local planning policies

A picture

Ministers scramble to avoid Labour rebellion on disability benefit cuts

Ministers are scrambling to avoid a damaging rebellion this summer when MPs vote on controversial cuts to disability benefit payments, even offering potential rebels the chance to miss the vote altogether.The government is due to hold a vote in June and dozens of Labour MPs are worried it will hurt their constituents and could cost them their seats.Possible solutions include allowing backbenchers to abstain – a major climbdown from earlier votes, when rebels were disciplined or suspended from the party. Ministers are also looking for ways to mitigate the cuts with extra spending on measures to tackle child poverty, including extra benefits payments for poorer parents of children under five.One Labour MP said: “When people abstained on the winter fuel vote, they were warned that it had been taken by the leadership as voting against the government