Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Electric Power

UK regulator looks at extending RAB model to large heat networks

Electric Power | Nuclear | Natural Gas | Oil | Crude Oil | Metals | Steel

Market Movers Europe, Oct 14-18: Oil markets focus on Putin's Saudi Arabia visit; Brexit looms over carbon market

Electric Power

Platts Market Data – Electric Power

Commodities | Energy | Electric Power | Emissions | Renewables | Natural Gas | Natural Gas (North American)

Northeast Power and Gas Markets Conference, 14th Annual


EU exporters see opportunity as US cancels some Turkish rebar imports: sources

UK regulator looks at extending RAB model to large heat networks


CfDs may not cut it for heat challenge

Ofgem supporting BEIS on re-think

Post-default tariff regime needs thought

London — There may be energy infrastructure investments beyond new nuclear, such as large heat networks, that could benefit from a regulated asset-based financing model, UK energy regulator Ofgem said Thursday in a 2019-2023 strategy document.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

This summer the UK government is due to issue a White Paper detailing how a regulated asset base funding model could be used to support new nuclear build. The approach is used extensively to incentivize monopoly gas and power networks.

Ofgem said a key priority to 2023 was to "develop effective ways of deploying regulated asset base (RAB) financing models for low carbon technologies." This could include very large heat networks, Ofgem said.

The use of district heating or the conversion to low carbon gas -- through biogas and/or hydrogen -- would substantially reduce carbon emissions from heating, the regulator noted.

"With Government accepting the Committee on Climate Change's recommendation for a net zero carbon dioxide emissions target by 2050, there is an increasing focus on decarbonization and particularly in the transport and heat sectors," it said.

There are concerns, however, about the ability of the existing Contract for Difference/Capacity Market regimes to deliver new nuclear and certain other technologies in a cost-effective way, it said.

This is because of the longer-term nature of these investments, the financial risk in delivery, and the long lead time for payments under low carbon CfDs.

As such Ofgem said it was supporting the Department of Business, Energy and Industrial Strategy in examining the efficiency and viability of funding low carbon power through RAB models.

"This would also play a key role in achieving our priority to support decarbonization at the lowest cost," it said.

More generally, the regulator said it needs to prove it is capable of delivering major change to the energy system by:

  • developing a successor regime to the current default tariff price cap, which expires no later than 2023;
  • concluding RIIO-2 gas and power network price controls for 2021-2026 at least cost while supporting decarbonization;
  • and delivering a large-scale extension of flexibility markets.

-- Henry Edwardes-Evans,

-- Edited by Alisdair Bowles,

Related factbox: EU CO₂ price hits 11-year high

Related story: EU Commission president candidate proposes 50% EU CO₂ cut by 2030