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industry & Government news

DIGEST BRUSSELS GREENLIGHTS

RETURN OF UK £990M
CAPACITY MARKET

THE UK’S LARGEST fossil fuel
generators may be back in line for
almost £1 billion in backup power
subsidies this winter after the
ROW OVER WHETHER European Commission approved the
UK’s flagship energy scheme, which
was ruled illegal last year.
FRACKING COULD RESUME brought the government’s capacity
A shock European court ruling
market to a standstill last November,
IN ENGLAND DESPITE ‘BAN’ triggering an in-depth investigation
into whether the UK’s plan to pay
power plants to stay open was
compatible with EU state aid law.
The commission’s green light
BORIS JOHNSON HAS BEEN accused of CUADRILLA is expected to clear the way for
U-turning on his fracking ‘ban’ after the payments of around £990 million to
government opened the door to more the owners of Britain’s gas, coal and
shale gas drilling in future. nuclear power plants to guarantee
The Tories announced they would they will keep the lights on this
stop all fracking in England at the start winter, reports The Guardian.
of the general election campaign – but Business Secretary Andrea Leadsom
just three days later, they quietly issued said she expected that the capacity
a document which contradicts that market would also pay back £1 billion
promise, According to The i newpaper. owed to generators for last winter when
Civil servants said that “future the capacity market was suspended.
applications will be considered on their Leadsom said the ruling should
own merits” despite the ban. And they enable the capacity market to
also said there was “considerable merit” resume its role as the UK’s principal
in loosening planning laws so local tool for assuring the UK’s security
councils would no longer be able to of supply. The decision provided
block firms from drlling for shale gas. IS THIS THE END FOR UK FRACKING? confidence that its design was fit for
Green campaigners and opposition purpose, she said.
politicians accused the Conservatives of to fracking, but does not rule out Under the scheme, energy
trying to keep fracking alive through the accepting new applications. companies bid years in advance
back door. But the Tories insisted the The document says: “It should be for billpayer-funded subsidies to
ban remains in place, saying: “Fracking noted that the government has made provide backup power at crunch
is off the table.” clear that on the basis of the current times during winter. It was approved
Hydraulic fracturing has been blamed scientific evidence, and in the absence by the European Commission in
for causing dozens of small earthquakes of compelling new evidence, it has 2014, but called into question last
when it has been carried out in taken a presumption against issuing year after the energy startup Tempus
England, principally in Lancashire. any further Hydraulic Fracturing Energy successfully appealed to the
Defenders insist the technique could Consents. While future applications European Court of Justice.
bring an energy revolution to the UK will be considered on their own merits Tempus Energy said the policy
similar to that experienced in America, by the Secretary of State in accordance put energy-saving schemes at a
bringing down the cost of gas. with the law, the shale gas industry disadvantage by overlooking the
But on 1 November, the Tories bowed should take the government’s position potential to balance the energy
to pressure and announced fracking into account when considering new system using measures that reduce
would be banned “until compelling developments.” demand in favour of ramping up
new evidence is provided” that shows it Campaign groups said the revelation energy supplies.
can be done safely. There is already an showed that the fracking ban should be
indefinite moratorium on fracking in written into law. BRITAIN’S COAL AND
Wales, Scotland and Northern Ireland. A Conservative party spokesperson NUCLEAR POWER WILL
BE PAID TO KEEP THE
On 4 November, the Ministry of said: “The government has placed a LIGHTS ON
Housing, Communities and Local moratorium on fracking in England
Government (MHCLG) published a with immediate effect by making it
response to a consultation on shale gas our policy not to issue any Hydraulic
exploration that appears to contradict Fracturing Consents. This does not
the new policy. It warns firms that technically prevent applications, but it
the government is generally opposed does mean that they will be refused.”

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