Downloads / Power Regulation

Funding nuclear power and radioactive waste

Professor Gordon MacKerron, SPRU, University of Sussex The UK Government expects substantial new investment in nuclear power as part of its approach to reducing carbon emissions and improving energy security.  It argues that it will not subsidise nuclear power but that it is taking \’facilitative actions\’ to smooth the path to substantial nuclear investment.  Achieving new nuclear investment will require investors to believe that the balance between risk and expected reward is sufficiently positive for them to commit very large sums.  (If each of the designated ten future nuclear sites were to have one reactor each located on them, the total addition to capacity would be c. 16,000 MW at a capital cost that would almost certainly exceed £20 bn.,  possibly by a large margin.) This paper examines the various commercial risks to which nuclear power is subject and concentrates on the degree of comfort that current plans for radioactive waste management will offer investors.  This analysis will examine both current \’physical\’ plans e.g. the need for operators to provide for around 160 years of on-site storage for spent nuclear Read more…

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Funding nuclear power and radioactive waste - Presentation.pdf 305.39 KB
22nd
Sep
2010

Price Signals from the Electricity Distribution Networks

Miss Rita Shaw, Electricity North West / University of Surrey  The paper/ poster explores the current regulatory framework around network pricing and discusses the extent to which this is ‘cost-reflective’. The fourteen electricity Distribution Network Operators (DNOs) provide distribution network services to all the demand and generation customers connected to their networks. Each DNO’s total income is fixed by a price-control regulatory system set by Ofgem. The DNOs set charges for connection and use-of-system in order to recover their allowed income. Their charging methodologies must meet licence obligations to ensure that their charges support development of an efficient distribution system, facilitate competition and, as far as practicable after considering implementation costs, reflect the DNO’s costs. Altogether the charges should provide the right signals to network users about network costs. The issue of fair and cost-reflective pricing was raised by the Sustainable Development Commission’s in-depth review of Ofgem, published in September 2007. The review suggested changes to the structure of transmission and distribution network charges to favour low-carbon generators. One suggestion was a discount on network charges for low-carbon electricity generators. Read more…

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Cost-reflective-pricing-and-the-electricity-distribution-networks-pres.pdf 282.15 KB
24th
Sep
2008

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