Page 7 - Gi_April2022

industry & government news

BOSSES OF BUST ENERGY SUPPLIERS ‘UNLIKELY

TO BE HELD TO ACCOUNT’, EXPERTS WARN

A CALL BY MPs for Ofgem to be given Directors Disqualification Act 1986, rocketed last autumn.
extra powers to hold bust energy which bans directors if they are found The Conservative MP for North
company founders to account is likely guilty of unfit conduct. East Bedfordshire asked: “About the
to prove futile, experts say. Currently this includes fraud, trading companies that have exited, have you
It follows confirmation that the while insolvent, or using company money got any powers of redress on those
energy price cap is rising by a huge or assets for personal benefit or not companies? Because there’s obviously an
margin this year, with energy bills set to paying tax, among other misdemeanours. opportunity for a company to get into the
jump by £693 from April – a rise of 54 However, Mr Rycroft said that to energy market, they price themselves low,
per cent according to The i newspaper. target directors of energy companies and get lots of customers.
It will hit around 22 million specifically and allow Ofgem to increase “They pay themselves a lot of money
customers who are already struggling to fines, a brand-new statute would need as executives and businesses and then
afford other everyday essentials such as to be approved by Parliament. poof – the business goes bust but they
food, rent and fuel. He added: “It would be unusual to pay themselves.”
A series of electricity and gas target specific industries like this, but Mr Fuller asked what current redress
providers have gone bust amid the it is possible.” powers the regulator has in these
energy price crisis. Earlier this year, MP Richard Fuller, circumstances.
Gary Rycroft, a member of the a member of the Business Energy and In response, Jonathan Brearley, Chief
Law Society’s council membership Industrial Strategy Select Committee, Executive Officer of Ofgem, said no
committee, said that “in theory” the UK questioned Ofgem on its lack of action such powers existed, adding: “We don’t
government could introduce secondary after 27 “challenger” energy companies have redress in those circumstances, I
legislation to extend the Company went bust as wholesale energy prices think we should.”

NEW COMMITTEE LAUNCHED TO HELP UK

GOVERNMENT AVOID HYDROGEN POLICY PITFALLS

THE CLIMATE CHANGE Committee’s In a statement, the Commission said
(CCC) former Vice Chair Baroness it is concerned that the strategy is not
Brown is among the members of a currently ambitious enough – or clear
new Hydrogen Policy Commission, enough on support to meet long-term
which will advise policymakers as the goals – to attract private investment.
green and blue hydrogen sectors scale Earlier this year, trade body the
up in the UK. Energy Networks Association (ENA)
Senior representatives from the recommended that the government
Conservative Party, Labour Party and target 10GW of low carbon hydrogen
Liberal Democrats will join Baroness generation by 2030 and provide extra
Brown as Commission members, funding to deliver this target.
as well as experts in hydrogen from Other concerns that have been
the UK’s private sector and senior voiced about the strategy include its
academics, reports sustainability focus on blue hydrogen, made using
website edie. natural gas co-located with carbon
The Commission will, in the first capture technology; and whether
instance, conduct an assessment the government is prioritising the
of the UK government’s Hydrogen right end-user sectors of hydrogen to
Strategy, with a report due out later maximise cost and carbon savings. FORMER CCC VICE CHAIR BARONESS BROWN
this year. It has planned an eight- The Commission will assess these in the global technology race.
month engagement programme with concerns as well as identify a pathway “Hydrogen is a real opportunity for
representatives from industry and for the UK government to become a the UK, with a key role to play in the
academia, as well as senior officials global leader in the export of hydrogen resilient zero-carbon energy system
from national and local government. and related technologies. Baroness we need to meet the challenges of
The Hydrogen Strategy was Brown has stated that, at present, the the changing climate and of global
published last August and builds on the UK risks “repeating the same mistakes” politics,” said Baroness Brown. “The
commitment made in the 10-Point Plan made with wind turbines and battery UK missed the boat on battery and
for the UK to host 5GW of “low carbon” technologies, which have allowed wind technology, we can’t afford to
hydrogen generation capacity by 2030. nations including China to pull ahead miss the boat on hydrogen.”

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17/03/2022 11:14
News.indd 2
News.indd 2 17/03/2022 11:14