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Hinkley C’s £6bn cost hike tests UK’s nuclear resolve
A further £6 billion cost increase at Hinkley Point C will test the government’s commitment to funding future large-scale nuclear projects, according to energy industry experts. EDF has admitted that construction of the 3.2GW power plant is now estimated to cost as much as £32.7 billion.
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‘Archaic’ Treasury rules threaten heat pump rollout
Around two thirds of the £150m allocated this year by the government for its flagship home heating upgrade scheme looks set to be clawed back under “archaic” Treasury rules, a leading figure in the heat pump sector has warned.
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£250m water pollution fines ‘still on the table’
Government is still pursuing hefty fines of up to £250 million as a deterrent to polluters, Therese Coffey confirmed. The Defra secretary demanded detailed plans on how water and sewerage companies intend to address each combined sewer overflow in their region as the sector works to minimise the risk of harm from discharges.
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Hydrogen ‘mixed messages’ undermine boiler scheme
Government "mixed messaging" and "misinformation" about hydrogen’s future role in home heating is unhelpful because the fuel is "not a serious option in the short to medium-term", peers have warned. A Lords committee concludes that the uptake for the Boiler Upgrade Scheme has been undermined by government messaging on hydrogen.
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T-4 capacity auction clears at record high price
The four-year-ahead (T-4) Capacity Market auction has cleared at a new record high price of at least £60/kW/yr. According to National Grid Electricity System Operator (ESO), the descending-clock auction for delivery starting in 2026/27 cleared in the third round covering the price range £60-65/kW/yr.
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Bevan calls for fact-based water debate
In his final water-related speech as head of the Environment Agency James Bevan called for a debate about rivers and pollution based on facts, rather than "wild assertions, myths and outright untruths". He said every person has a role to play to improve the water environment but said water companies and farmers as "the main polluters" need to address culture and behaviour change as well as invest in assets and infrastructure.
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Ofgem seeks alternatives to forced PPM installs
Ofgem is exploring options to reduce the need for prepayment meters to be installed in consumers’ homes following the recent outcry over alleged supplier malpractice. Meanwhile the regulator’s chief executive Jonathan Brearley has called for installations to be reversed and compensation offered where rules have been broken.
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Natwest CEO to chair energy efficiency taskforce
Alison Rose, the chief executive of Natwest, has been announced as the co-chair of the government’s Energy Efficiency Taskforce. The group, which will be jointly led by energy minister Lord Callanan, has been tasked with helping to reduce national energy consumption by 15% over the next seven years through insulation measures, boiler upgrades and other energy efficiency initiatives.
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UK faces £62bn green investment shortfall
The investment climate for low carbon generation has “deteriorated significantly” in recent months, with the UK facing a potential £62 billion shortfall over the next decade, industry experts have warned. A report published by Energy UK states that without “rapid government intervention” the UK’s energy security and net zero targets will be undermined due to a lack of private sector investment, with “crippling consequences for the country”.
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Portsmouth awards £208m reservoir contracts
More than £200 million of contracts have been awarded by Portsmouth Water for the construction of Havant Thicket reservoir and the connecting pipelines. After Ofwat approved the revised budget for the first reservoir in 30 years, the deals were agreed for the scheme that will deliver water supply resilience in Hampshire to benefit Southern Water customers.
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Extreme weather events drive up Affinity leaks
A long hot summer and plunging December temperatures caused significant increases in the number of burst pipes Affinity Water repaired through the year. Year-on-year, teams repaired 256% more leaks in August and 196% more in December when two extremes of weather impacted pipes. Teams worked around the clock, utilising digital sensors and AI to detect problems in the network.
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January sees record EBSS redemption rates
More than £7 billion from the Energy Bills Support Scheme (EBSS) has been provided to 98% of eligible households, with January seeing a record number of prepayment meter (PPM) vouchers redeemed. To date 76% of all EBSS vouchers have now been redeemed.
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Thames Water seeks contractors for £500m framework
Thames Water has fired the starting gun on procurement of a £500 million framework relating to its above-ground assets. The 10-year framework covers water and wastewater assets and relates to all above ground plant, equipment and structures.
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Weekend press round-up: Japanese owners put SES Water up for sale
The Japanese owners of SES Water are reportedly putting the business up for sale due to their reluctance to inject fresh equity into the highly-geared company. Meanwhile, Grant Shapps, head of the newly-formed Department for Energy Security and Net Zero, discusses his plans to make British energy the cheapest in Europe. This and more in Utility Week’s latest round-up of the weekend’s papers.  
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