Pavilion Energy formed to Supply Asia's Rising Gas Demand
Pavilion Energy Pte. Ltd. (“Pavilion Energy”) has been incorporated by Singapore investor, Temasek, with an initial authorised capital of S$1 billion, to tap into Asia’s growing energy demand.
As the region’s economies continue to transform and urbanise, the demand for clean energy, especially Liquefied Natural Gas (LNG), is expected to increase.
According to the International Energy Agency, the global use of gas will rise 50% by 2035, from the 2010 levels. Gas will account for a quarter of the world’s energy mix, especially with increasing demands from large economies such as China which is replacing coal with gas as an energy source.
Pavilion Energy will look to partner with energy industry leaders and players to meet the region’s growing gas needs. It may also co-invest alongside Temasek, which has been stepping up its investments in the energy and resource sectors over the last few years.
Pavilion Energy has appointed one of the most respected oil and gas industry leaders, Tan Sri Mohd Hassan Marican, the former President and CEO of Petronas, as the chairman of its Board. Pavilion Energy will also enlist the expertise and experience of other well regarded industry captains and business leaders such as Mr Liew Mun Leong, former CEO of the CapitaLand Group, to reinforce its business and corporate governance leadership.
The company has also appointed Mr Seah Moon Ming as its Chief Executive Officer. Mr Seah joined Temasek in March as Senior Managing Director, Special Projects, to establish the new energy business entity. He was most recently the Deputy CEO of ST Engineering, overseeing ST Aerospace, ST Electronics, ST Kinetics and ST Marine.
Mr Seah said, “To secure long term and stable supply of LNG to our customers in Singapore and the Asian region, we will be sourcing our LNG supply from multiple sources and various partners in North America, Europe, Asia, Africa and Australia.
“We also expect to participate and invest in various parts of LNG value chain to ensure long term LNG supply. These could include LNG trading; investing alongside international oil and gas companies as partners to develop upstream LNG projects; building of LNG storage and re-gasification terminals; and investing in LNG shipping. Long term secure and reliable supply is critical to success in the LNG business.”
Over the coming months, Pavilion Energy will work to set up the various parts of its operations and it expects to be operational in September 2013.
SOURCE: Pavilion Energy Pte. Ltd.
Ofwat allows retailers to raise prices from April
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:
- 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.
- 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.
- 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.
"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 Ventures, Wave 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.