May 17, 2020

Offshore Oil Drilling Stopped in Belize

energy digital
Belize
Oil
reef
Admin
3 min
Belize's barrier reef
Yesterday, Belize's Supreme Court declared offshore drilling contracts issued by the Government of Belize (in 2004 and 2007) null and void, provid...

 

Yesterday, Belize's Supreme Court declared offshore drilling contracts issued by the Government of Belize (in 2004 and 2007) null and void, providing a dramatic and potentially definitive setback to The Government of Belize and the petroleum prospecting companies issued the contracts.

The ruling, handed down by Justice Oswell Legall, was in response to a case brought by Oceana, COLA, and the Belize Coalition to Save Our Natural Heritage. It effectively ends the Belizean government's immediate effort to allow offshore oil drilling in the Meso American Reef, the second largest barrier reef in the world.

The court overturned the contracts after determining that the government failed to assess the environmental impact on Belize's ocean, as required by law, prior to issuing the contracts. The court also found that contracts were made to companies that did not demonstrate a proven ability to contribute the necessary funds, assets, machinery, equipment, tools and technical expertise to drill safely.

Oceana has campaigned against offshore drilling in Belize for more than two years. In 2011, after collecting the 20,000+ signatures required to trigger a national referendum that would allow the public to vote on whether or not to allow offshore oil drilling in Belize's reef, the Government disqualified over 8,000 of these signatures effectively on the basis of poor penmanship, stopping the possibility of a vote. Oceana answered by quickly organizing the nation's first ever "People's Referendum" on February 29, 2012 in which 29, 235 people (Belize's entire population is approximately 350,000) came from all over the country to cast their votes. In this historic vote, 96% voted against offshore exploration and drilling. The government subsequently almost lost its majority in the national election that followed these votes. Oceana is fighting for a complete ban on offshore drilling in Belize and believes the Government of Belize should allow the people to express their opinion in an official referendum.

"This is a great day for the people and country of Belize and its democratic process and it shows that we, as ordinary citizens, need not sit back and only complain about all the wrong decisions our Government makes, but that we can use the Judiciary system to settle them," said Audrey Matura-Shepherd Vice President of Oceana in Belize.

Oceana has long voiced its concern about the potentially devastating impact of an oil spill on Belize's reef and its economy, which depends heavily on tourism and the barrier reef. The companies were granted the oil concessions essentially in secret. Princess Petroleum, whose contract was just overturned, began as a hotel and casino company before it was granted concession to explore for oil. The company was granted exploration rights by the Government of Belize over the Blue Hole, a UNESCO World Heritage Site and popular travel destination made famous by legendary ocean explorer Jacques Cousteau.

Bill Lahey, a senior partner at the law firm of Anderson & Kreiger that helped represent Oceana in this case said, "Anderson & Kreiger is honored to have helped Oceana win this major victory which protects one of world's most precious barrier reefs and tourism in Belize."

SOURCE: Oceana

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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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