CMS Cameron McKenna Nabarro Olswang LLP updates
Electricity storage: consenting clarity
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 25 February 2019
The Department for Business, Energy & Industrial Strategy (BEIS) recently launched a consultation on proposals regarding the consenting of large-scale electricity storage in England. As the current planning system does not distinguish between standalone and co-located storage technologies, storage developers must consider a number of issues to ensure that the electricity storage facility is consented lawfully. The BEIS's proposals provide much needed clarity in this regard.
All change for network charging – Ofgen launches significant code review
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 21 January 2019
Ofgem recently published its decision to launch a significant code review (SCR) into the electricity network access and forward-looking charging arrangements. The decision sets out the scope and guiding principles for the SCR, along with a timeline for the process. The aims of the SCR include encouraging the better use of existing network capacity and minimising future network costs.
End of the triad? Update on Ofgem's Targeted Charging Review
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 14 January 2019
Ofgem recently published its 'minded to' decision on its Targeted Charging Review. The decision sets out Ofgem's view that the residual aspect of electricity transmission and distribution network charges should be based on fixed tariffs for different classes of consumer rather than the other options under consideration (eg, usage during periods of peak demand). Ofgem also proposes to remove most of the remaining embedded benefits enjoyed by smaller distribution-connected generators.
New Ofgem guidance for operators of essential services
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 07 January 2019
Ofgem has published guidance for operators of essential services (OES) in the energy sector. The guidance aims to support OES in meeting their cybersecurity obligations under the Network and Information Systems Directive and the implementing UK law, the Network and Information Systems Regulations 2018. OES must now adhere to a timeline to demonstrate their compliance and work with Ofgem to make any necessary changes.
OPRED consults on new civil penalties for illegal oil and gas-related activity
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 03 December 2018
The Department for Energy and Industrial Strategy and the Offshore Petroleum Regulator for Environment and Decommissioning recently launched a consultation on the draft guidance to accompany the Offshore Environmental Civil Sanctions Regulations 2018. The overarching message of the new penalties regime is that the processes and outcomes of enforcement with regard to offshore companies engaged in illegal oil and gas-related activity will change considerably.
Progress, but still much to do: update on smart systems and flexibility plan
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 19 November 2018
The Department for Business, Energy and Industrial Strategy and Ofgem recently released a progress update relating to their July 2017 joint paper "Upgrading Our Energy System: Smart Systems and Flexibility Plan". Among other things, the update discusses the steps that have been and remain to be taken to improve certainty over the treatment of storage in the current regulatory regime with the aim of providing further clarity for developers of storage facilities.
Government consultation response on proposed amendments to CfD regime
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 16 July 2018
The government has released Part A of its response to the consultation on amendments to the Contracts for Difference Regime 1, primarily addressing its intention to allow remote island wind (RIW) to compete in future Pot 2 allocation rounds with less established technologies. The consultation response also refers to further proposals put to the government in relation to RIW, including improving RIW competitiveness.
Updated field development guidance published by OGA
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 25 June 2018
The Oil and Gas Authority recently released updated guidance on planning and gaining consent to UK Continental Shelf field developments. The guidance is intended to assist those involved in planning a new field development and obtaining the consent required to proceed with a field development plan. The guidance was created with the industry's input to try to achieve consistent and successful high quality and high value projects.
New Oil and Gas Authority reports share industry knowledge and plans on technical solutions for MER UK
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 18 June 2018
The Oil and Gas Authority recently released its UK Continental Shelf (UKCS) Technology Insights and Southern North Sea Salting Study reports. The reports focus on current work taking place in the industry to develop technical solutions to maximise economic recovery of UKCS hydrocarbon resources.
Energy performance of buildings and Brexit: the final cut (for now)
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 04 June 2018
The Council of the European Union has announced the agreement on the final version of the revised Energy Performance of Buildings Directive. The directive will enter into force 20 days after publication in the Official Journal and member states will have 20 months to transpose it. There are several long-tail requirements for which compliance queries will not arise until well after this period. A practical difference will be any surveillance or enforcement and the consultation on a 'green watchdog' in respect of England.
Deepwater Horizon – multiple arbitrator appointments on same incident
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 21 May 2018
The Court of Appeal has considered the extent to which an arbitrator may, without the parties' knowledge, accept appointments in several matters in relation to the same or overlapping subject matters with only one common party without giving rise to an appearance of bias. As disputes in the oil and gas industry can reverberate through the value chain, and associated insurance, the decision is of particular interest to the sector.
Oil and gas: are you in control? Parent company liability in Ogale Community v Shell
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 02 April 2018
A recent Court of Appeal decision has confirmed that a claim against an English-domiciled parent of a foreign oil and gas company may not proceed in the English courts if the claimants are unable to prove that the parent owed them a duty of care. The decision highlights that the court will look closely at the influence of group policies and the extent of practical or shared control that the parent has over the operations that are the subject of a claim.
Clearing price plummets in T-4 Capacity Market Auction
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 12 March 2018
National Grid recently published the provisional auction results for the 2017 T-4 Capacity Market Auction, with successful bidders having been provisionally awarded capacity agreements for delivery in 2021/22 at a price of £8.40 per kilowatt (kW) per year. The clearing price is significantly lower than that awarded in the 2016 Capacity Market Auction, where successful bidders were awarded capacity agreements at £22.50 per kW per year.
Oil and gas consultancy agreements: giving effect to parties' true intentions in a commercial context
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 05 March 2018
The Court of Appeal has provided guidance as to what the words "fully operational and enforceable" in an agreement might mean in the context of a production sharing agreement in Kurdistan – in particular, whether such an agreement may be considered fully operational and enforceable without ratification by the Federal Government of Iraq. In doing so, the Court of Appeal ventured into an area that is hotly contested in Iraq.
Offshore renewables: proposed updates to BEIS decommissioning programme guidance
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 26 February 2018
The government Department of Business, Energy and Industrial Strategy recently published a consultation proposing amendments to its guidance for developers and operators of offshore renewable generating stations and transmission assets in respect of decommissioning programmes. The focus of the amendments is on providing greater clarity around the decommissioning cost estimates that developers must provide in their programmes and the financial security that they must provide.
House of Lords European Committee publishes report on energy security post-Brexit
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 19 February 2018
The House of Lords European Committee has published its report on energy security in the United Kingdom following its withdrawal from the European Union. Key among the report's conclusions is that investors require certainty as to the future of UK energy policy. The report also recommends that any change in arrangements should be accompanied by a transition period that ensures consumers are protected while businesses adjust their working practices, contracts and systems.
New siting criteria for large nuclear power stations
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 12 February 2018
The Department for Business, Energy and Industrial Strategy recently issued a consultation on the siting criteria and process for a new national policy statement (NPS) on nuclear power. The NPS will apply to nuclear power stations expected to deploy after 2025 but before 2035, which have over one gigawatt of single reactor electricity generation capacity. It will establish the framework for development consent decisions on applications for new nuclear power stations expected to deploy post 2025.
Prospective vs retrospective delay analysis: new TCC commentary
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 05 February 2018
A recent Technology and Construction Court decision considers the difference between prospective and retrospective approaches to delay analysis. The decision found that the two approaches will not necessarily lead to the same answer and may provide support for the use of prospective approaches in the assessment of extension of time claims. The court's comments are likely to encourage further debate over the use of the approaches in English law.
OGA announces supply chain action plans
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 29 January 2018
The Oil and Gas Authority (OGA) has published guidance on the development of supply chain action plans (SCAPs) in respect of all new projects, including decommissioning. In introducing SCAPs into the offshore oil and gas industry, the OGA is highlighting the importance of relationships with the supply chain in maximising the economic recovery of the UK Continental Shelf and unlocking the full potential of the basin.
CfD regime: changes for future allocation rounds
CMS Cameron McKenna Nabarro Olswang LLP- Energy & Natural Resources
- United Kingdom
- 22 January 2018
The government has released its consultation on amendments to the Contracts for Difference (CfD) regime. The consultation confirms the government's intention to allow remote island onshore wind to compete in future Pot 2 allocation rounds. It also proposes changes to the CfD contract to lower the risk to consumers from conservative load factor estimates and to restrict reliefs awarded to generators in the case of force majeure or grid connection delays.
