May 17, 2020

Keystone XL Would Only Create 35 Permanent Jobs

energy digital
Keystone XL
Keystone XL pipeline
Oil
Admin
2 min
From half a million to a mere 35: who do you believe?
According to TransCanada's figures, should the Keystone XL pipeline be approved, over half a million permanent jobs would be created—a misle...

 

According to TransCanada's figures, should the Keystone XL pipeline be approved, over half a million permanent jobs would be created—a misleading figure at best.

In a study commissioned by the company in 2010, TransCanada claims that the pipeline would create 118,935 non-permanent jobs, with 20,000 openings in construction and manufacturing. It also estimates that the pipeline's construction would create 553,235 permanent jobs due to increased US oil supply.

A report released this week from the State Department, however, estimates much smaller figures. In addition to downplaying the environmental concerns of the construction of the pipeline, it estimates that the project would only create 42,100 jobs during the construction phase of one to two years, which would then diminish to a mere 35 permanent position thereafter for maintenance and inspections.

The long partisan debate over the subject has notoriously floated a plethora of confusing jobs numbers (see chart below).

"Completion of the Keystone XL Pipeline extension will bring over 1.4 million barrels of oil per day into U.S. markets and create more than 100,000 American jobs," House Energy and Commerce Chairman Fred Upton (R-Mich.) said in 2011

But would the proposed pipeline actually have a significant impact on the US oil market, considering that the majority of the oil that would reach refineries in Texas would be located in free trade zones in the Gulf where supplies could be shipped off to foreign buyers (without paying US taxes)?

“...it will divert tar sands from the Midwest to the Gulf, raising American oil prices and likely also gasoline prices,” the NRDC's Susan Casey-Leftkowitz writes. “An Oklahoma to Texas tar sands pipeline will mean more tar sands converted to diesel and available for export overseas. It will mean less tar sands remaining in the US, even while Americans bear the risks of the pipeline.”

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Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

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