Energy policies push up business bills

The UK's energy and climate change policies will help cushion domestic consumers from price rises. But they will lead to an increase in average bills for businesses, a new government report has concluded.
According to the report, published on 27 March, medium-sized energy users currently face bills that are already 21% higher, than would otherwise be the case, as a result of government policies. This is expected to increase in future years.
Energy-intensive users' energy costs were said to be up to 14% higher than otherwise would be as a result of policies, and this could increase to 36% by the end of the decade - largely because of the impact of the UK carbon floor price, which came into force on 1 April this year, and the EU Emissions Trading Scheme.

April Update

Industrial sectors sign up to 2020 energy efficiency targets
The UK's energy intensive industries have agreed to commit to extending energy efficiency improvement targets to 2020 as part of the voluntary Climate Change Agreements (CCA) scheme.

EU greenhouse gas emissions down 1.4% on 2011
The European Union's 27-Member State and Norway emitted around 1,876 million tonnes (Mt) of greenhouse gases in 2012, a decrease of 1.4% on 2011.

Virgin Atlantic soars to sustainable in-flight catering
Virgin Atlantic's global catering operations are to be evaluated and rated for their sustainability credentials by the Sustainable Restaurant Association (SRA).

Bluewater will be case study for future energy management projects
Bluewater's strategy for cutting its annual energy bill by 50%, with the aim to become Europe's most energy-efficient retail complex, will be a benchmark for future energy management projects, says Lend Lease's Pascal Mittermaier.

Business energy in spotlight as Ofgem tightens protections

New rules for the treatment of businesses by gas and electricity suppliers have been put forward for consultation by Ofgem.

The regulator issued its final proposals for reforms to aid businesses on 22 March, following the outcome of its Retail Market Reform investigation published in March 2011.

The key elements include extending existing licence conditions that protect micro-businesses by amending the definition. The regulator is also proposing to mandate suppliers to ensure micro-business energy bills contain contract end dates, and allow businesses to terminate their contracts at any time. Binding standards of conduct that focus on suppliers' dealings with small business are also set to be introduced.

Bombay Sapphire distillery

Bombay Sapphire distillery world's first to achieve highest level of sustainable construction
A Bombay Sapphire gin distillery at Laverstoke Mill in Hampshire has become the first distillery to achieve the highest level of sustainable construction under the BREEAM accreditation.

The Deepwater & Ultra Deepwater Exploration & Production Market

The Deepwater & Ultra Deepwater Exploration & Production Market 2013-2023
Analysis indicates that the global deepwater & ultra deepwater exploration & production market will reach a value of $83.2bn in 2013. The sector will experience strong growth over the forecast period as development of large offshore oil finds drive expenditure for ongoing projects and create an incentive for further exploration. Analysis provides a comprehensive overview of the deepwater & ultra deepwater exploration & production market taking into the various factors influencing the development of the market.

Guidance: Green Deal: How the Green Deal and Feed-In Tariffs work together

By HM Government

Updated: Guide update 19 Dec 2013.

A quick guide explaining how the Green Deal and Feed-In Tariffs work together

Detailed guide: Community Energy

By HM Government

Updated: And updated guide following the publication of the Community Energy Strategy.

The following guide is aimed at communities who may be interested in energy activities or projects.

We have recently published the UK's first Community Energy Strategy, following our Call for Evidence on Community Energy in Summer 2013.

What is community energy?

Community energy covers aspects of collective action to reduce, purchase, manage and generate energy.

Community energy projects have an emphasis on local engagement, local leadership and control and the local community benefiting collectively from the outcomes.

Community-led action can often tackle challenging issues around energy, with community groups well placed to understand their local areas and to bring people together with common purpose.

There are many examples of community energy projects across the UK, with at least 5000 community groups undertaking energy initiatives in the last five years. Examples of community energy projects include:

• Community-owned renewable electricity installations such as solar photovoltaic (PV) panels, wind turbines or hydroelectric generation.


• Members of the community jointly switching to a renewable heat source such as a heat pump or biomass boiler.


• A community group supporting energy saving measures such as the installation of cavity wall or solid wall insulation, which can be funded wholly or partly by the Green Deal.


• Working in partnership with the local Distribution Network Operator (DNO) to pilot smart technologies.


• Collective purchasing of heating oil for off gas-grid communities


• Collective switching of electricity or gas suppliers.

There are many case study examples of community energy activities across the UK in the Community Energy Call for Evidence and Strategy.

In the following sections there is further information on the options to consider, as well as sources of help and guidance.

Support available for Community Energy

Different types of community energy activity may need different types of support from organisations outside of the community. For example, your Local Authority might be able to provide advice and guidance if you are considering applying for planning permission to do an electricity generation project. You might want to talk to local businesses if you are interested in reducing the carbon footprint of your area to see how they can help.

This page provides a list of the support available through Government-funded schemes to support specific types of community energy initiatives. At the end are links to other non-Government organisations that may be able to offer further advice. In 2014, a new information resource for communities in England will be available; more details on this will follow shortly.

Community Electricity and Heat Generation

Community electricity or heat generation can enable communities to benefit from local resources. Renewable electricity and heat generation contribute to the UK's goal of reducing greenhouse gas emissions, helping your community play a part in reducing climate change. Your community may be able to receive a financial benefit from electricity and heat generation, in addition to other benefits, such as bringing everyone together or engaging people with ideas on how to save energy or money on energy bills.

If your community wants to know more about generating electricity or heat, you may be interested in the following. If you click on the headings, they will take you to more detailed pages on the relevant schemes.

Feed-in Tariffs (FITs) scheme

FITs support individuals and organisations, including communities, to generate low-carbon electricity using small-scale systems. The scheme covers solar PV panels, wind turbines, water turbines, anaerobic digestion (biogas energy) and micro combined heat and power (micro-CHP).

Currently you can receive FITs on installations of up to 5 megawatts (MW). We will be consulting in 2014 on the introduction of a higher threshold of 10 MW for community groups. Feed-in Tariffs provide a payment for the electricity that is generated; the up-front costs need to be funded eg via a local share offer or loan finance.

There are additional benefits for some community groups for FITs. Community Interest Companies (CICs), cooperatives and Community Benefit Societies (Industrial and Provident Societies which are not cooperatives) are able to fix tariff rates for a period and may be exempt from certain energy efficiency requirements for energy generated using solar PV panels. For more on FITs arrangements for eligible community groups, see the Ofgem website. Community groups which are not currently eligible for additional benefits can set up a CIC cooperative/Industrial and Provident Society (see below).

The Renewable Heat Incentive (RHI) Scheme

The RHI helps organisations including communities to meet the cost of installing renewable heat technologies. The scheme covers biomass, ground and water source heat pumps, geothermal, solar thermal, biomethane and biogas heating.

Currently the RHI is available for non-domestic installations, but the domestic RHI will launch in Spring 2014. The RHI provides payments for the heat produced renewably for 20 years, and as for FITs, the up-front costs need to be funded by the community organisation. As well as receiving RHI payments, community groups generating heat can sell the heat produced to provide a supplementary income stream.

More detailed information specifically for communities considering the RHI will be available shortly.

Heat Networks Delivery Unit

The Heat Networks Delivery Unit within the Department of Energy and Climate Change (DECC) will support local authority-led heat network projects in England and Wales. There are many funding and delivery models for these. These might include setting up energy service companies (ESCOs) that are wholly owned by the local authority, co-operative models that are owned by those they serve or joint venture companies including a private developer or financier. More information on heat networks is available on the GOV.UK website.

£15m Rural Community Energy Fund (RCEF) - open to applications

The £15m RCEF is aimed at helping rural communities in England access funding to carry out feasibility studies for renewable energy projects, fund pre-planning studies and preparation of planning applications. RCEF funds will support eligible rural projects including wind, solar, biomass, heat pumps, anaerobic digestion, gas Combined Heat and Power (CHP) and hydro through initial grants at stage 1 (less than £20,000) and loans at stage 2. For further information and details of how to apply, see the WRAP website.

£10m fund for non-rural community energy projects – opening 2014

As announced in the Community Energy Strategy, we will be launching an Urban Communities Energy Fund (UCEF) as a counterpart to RCEF for non-rural communities in England in 2014. More details on eligibility criteria and how to apply will follow shortly.

Community groups may also be eligible for tax relief through the Enterprise Investment Scheme (EIS), details of which can be found on the HMRC website. In the Autumn Statement 2013, an outline of a new social investment tax relief were given, which may be of benefit to communities. Information will be available in due course on the GOV.UK website.

Reducing energy use in your community

Reducing energy use can reduce carbon emissions, and also save people money on their energy bills. Communities working together can save energy in a number of ways.

For example, communities may get together to improve the energy efficiency of a local building; share tips on how households can use less energy on a day-to-day basis; or advise people about what support is available to help them insulate their homes.

Communities can be particularly effective at engaging vulnerable consumers and reaching those in fuel poverty.

The main Government programme for installing energy efficiency measures is the Green Deal. In July 2013, the Green Deal Communities scheme was launched to provide £20m to Local Authorities working with community groups to save energy by installing energy efficiency measures. In December 2013 this was extended to £80m.

Community groups can help access hard to reach consumers to support installation of energy efficiency measures via the Green Deal. More information is available on the Green Deal: energy saving for your home or business page. You can find out more about the Green Deal delivery through community groups or through PlanLoCaL's interactive pack for communities.

Some activities undertaken by communities relating to the Green Deal may require a licence under the Consumer Credit Act (1974). DECC, working with the Office of Fair Trading, has produced new guidance for Green Deal participants on licensing requirements under the Consumer Credit Act (1974), to help give community energy groups confidence about engaging with Green Deal.

To help support communities who want to promote the benefits of energy efficiency to others in their area, DECC has committed £430,000 funding to a new Green Open Homes national network being developed by the CSE with Bristol Green Doors. The network offers resources, advice and a new online hub to help local groups and organisations prepare, run and publicise events that show off home energy saving improvements in their communities.

If you are a charity or community interest company which would like to benefit from domestic customers' Green Deal Cashback, you can register on the Green Deal cashback website. The Green Deal Cashback scheme is a limited offer, while funds last. For further information contact the Cashback Administrator on 0300 555 0201.

Community Energy Demand Management

Some community groups who have undertaken energy generation and energy reduction projects have also considered energy demand management. With a progressively smarter grid, consumers are offered more information about their energy use and incentivised to shift their demand to help balance supply and therefore reduce the need for costly generation capacity to meet high peak demand. This also helps to accommodate renewable electricity generation, electrification of heating (eg heat pumps) and electric vehicles.

Communities wishing to undertake demand management projects will likely want to work with their local Distribution Network Operator (DNO). Such partnerships are eligible to apply to Ofgem's Low Carbon Networks Fund if they wish to pilot new approaches. Community groups may also wish to collaborate with others to bid for funding through the Technology Strategy Board Localised Energy Systems competition.

Future community energy management initiatives will benefit from better consumption data, available as a result of the roll-out of smart meters. Most households will have smart meters installed by their energy company between 2015 and 2020, although some energy companies are starting to install smart meters now.

Community Collective Purchasing and Switching

Community energy purchasing and switching can help consumers secure better deals on electricity, gas, heating oil, insulation or renewable technologies through discounts or referral fees. Community groups can bring people together to purchase collectively or switch together, saving money. The involvement of a community group can reach out to the most vulnerable members of the community who may be most in need.

We've published a practical guide to setting up and running a collective purchasing or community buying group.

In 2012/13, we ran the Cheaper Energy Together scheme which supported the development of 31 innovative collective switching and purchasing schemes for energy, and many of these schemes involved collaboration with community groups. You can read more about what was learnt from Cheaper Energy Together. A practical guide to setting up a collective switching scheme is also available.

Further information

The following organisations have produced useful toolkits and links for people interested in establishing or involved with running a community energy project:

• Scottish Government Community Renewable Energy Toolkit


• Energy Saving Trust: Agencies supplying support and guidance to communities


• PlanLoCaL videos on the overall process


• PlanLoCaL: Getting people involved


• Energy Saving Trust: How to engage your community on climate change

Governance and legal structures for community groups

A legal structure is needed to apply for the majority of grants and to qualify for loans. The following are examples of community group legal structures:

There are two types of Industrial and Provident Society:

• 
  

  Community Benefit Society (BenCom). This is set up to benefit a particular stakeholder group. They cannot operate like a private company and IPSs can offer community shares (less than £20,000 limit).

  
  


• 
  

  Co-operative Society. This is run by and for the interest of its members. Co-operatives pay out dividends to members, often on the basis of participation not investment. Each member gets one vote, regardless of the number of shares they own. For further free advice, contact the Co-operative Hub.

  
  

Community Interest Companies (CICs) cannot be formed or used solely for the personal gain of a particular person, or group of people. They have an asset lock and a limit on dividends. CICs are supervised by the CIC Regulator. CICs cannot run community share offers.

Charities are run by trustees, supported by donations and have charitable status (tax relief). They are regulated by the Charity Commission.

Joint Ventures involve a community group and one or more other bodies like a private investor who may bring business or technical skills, capital, legal expertise, local land etc.

For further advice:

• 
  The Centre for Sustainable Energy (PlanLoCaL) offers “The Source”, an online resource which offers links to various information including advice on setting up a legal structure.


• You can find out more about setting up a social enterprise on the GOV.UK pages.

Choosing a technology

The quality of a product and installation affects its performance. This in turn directly affects income and the financial payback period. Advice should be sought on installations that are less than 50kw (electricity) and less than 45kw (heat), with written estimates of outputs and costs, from MCS installer companies. Above these capacities, communities can get advice from consultants. ‘Due diligence' on technologies/consultants is part of the process.

The following links provide comprehensive information on choosing suitable technologies:

• PlanLoCaL


• energyshare guide to technologies and services

Choosing a consultant

A qualified and experienced consultant can assess on behalf of community groups the feasibility, likely performance and energy outputs, ie the long term income which repays the investment. They can also advise on the most appropriate technology.

Below 50kWs for electricity and 45kWs for heat, MCS installer companies can act as consultants. Communities are not covered by the MCS consumer code of practice but there are routes for any complaints should they arise via MCS. See the MCS site for further advice.

There is further advice on choosing a consultant on the WRAP website.

Planning permission

All renewable energy installations that involve development require planning permission. This may be granted either by a permitted development right (PDR) or by a planning application to the local planning authority. Development is defined in section 55 of the Town and Country Planning Act.

Please see the Planning Portal for further guidance and contact your local planning officer. The following links offer further information:

• 
  Planning Portal - Neighbourhood Development Plans


• 
  Dept of Communities and Local Govt - Neighbourhood Forum


• Local Govt Association's energy infrastructure planning tool.


• PlanLoCaL videos

Communities should also bear in mind that issues such as landscape, ecology, environmental and archaeology, may affect different renewable technologies. For example:

• Wind turbines can affect radar. For more information, see the Ministry of Defence information, NATs and the Civil Aviation Authority.


• Hydropower - at every capacity, installations require permits and environmental assessment by the Environment Agency (EA) or its partner organisations in developed administrations. For more information, see Hydropower: a Guide for you and your community
  

Business planning and funding

Community groups need to develop a business plan. This may have to fund an income and enough profit to pay interest on any premium or loans and give investors a reasonable rate of return. Other costs are likely to include administration, project management, communication, planning, testing, community share offers, land ownership/leasing, insurances, legal advice, installation, grid connection, ongoing maintenance, repair and taxes and decommissioning.

Funding for the up-front costs can come from loans, grants, private investors, or community share offers. Not for profit organisations like CICs and IPSs may find difficulty borrowing all of the funding for less than £1m and may only be able to raise a 50% bank loan.

Some banks specifically support community groups. These include: Charity Bank, Triodos and Cooperative Bank.

Communityshares.org.uk offers advice on community share offers. PlanLocal also have a number of useful videos on finding funding for community projects.

Risk and insurances

It is the responsibility of the community to ensure that adequate insurances are put in place, at every stage of a project. Communities may want to undertake a risk assessment at the same time as drawing up their business plan.

Communities should undertake due diligence and put in place tight legal contracts with installer companies, to cover themselves should installations not perform as expected.

Advice and information

• PlanLocal


• 
  Local Energy Scotland - database of community projects and information on loan schemes


• Community Energy Wales


• 
  Welsh community energy toolkit - with short summary of key issues


• 
  Carbon Trust - Guides on buildings and technologies


• Energy Saving Trust video case studies


• Energy Saving Trust case studies


• 
  Transition Streets – Transition Network information on community “street” programme and training


• 
  The Greening Campaign - a community network of local voluntary groups offering community groups advice about starting up, grants, legal structures, retrofits etc. It offers a news update.


• 
  Energy4all - offers resources to support community owned renewables (eg community owned wind farms)


• 
  Cooperative Enterprise Hub - free advice and support for communities on forming cooperatives.


• 
  Cooperative Community Share Fund – free advice on raising community shares


• Low Carbon Hub


• 
  CLUES “interactive triangle tool” on analysing barriers


• 
  BioRegional energy retrofit for buildings


• 
  Business in You - Department for Business website with advice on how to set up a business


• Heat map for England


• ShareEnergy


• 
  Biomass Energy Centre - online information on biomass


• Department for Communities and Local Government: Planning practice guidance for renewable and low carbon energy

Community Energy Contact Group

The Community Energy Contact Group are representatives from community energy projects who meet regularly with DECC. You can find out more about the group and read the minutes from the quarterly meetings.

Energy Capacity Gap

MPs call for biomass backing to bridge 'energy capacity gap' Government backing for biomass is urgently needed in order for the UK to meet renewable targets, ensure energy security and support jobs, according to MP Nigel Adams.

 

Ecotricity 'deepens' link between renewable energy and nature with RSPB partnership Britain's first green energy company, Ecotricity, will work with conservation charity RSPB to help protect wildlife when developing renewable energy projects.

£1bn support package for the aerospace industry

The Government has outlined a £1bn support package for the aerospace industry that will focus on increasing the energy and fuel efficiency of aircrafts.

In addition to the Government fund, industry will also pledge up to £1bn to create an institute, known as the UK Aerospace Technology Institute (ATI), which will be used to develop aircrafts that are "quieter and more energy-efficient".

Spread over a seven year period, the funding aims to boost the industry and establish the UK as the world's favoured supplier of aviation technology.

Secretary of State for Business, Innovation and Skills, Vince Cable, said: "A step change in technology is needed if these aircraft are going to deliver the improvements in efficiency and environmental performance needed to make air travel sustainable".

Budget 2013 - An Energy Budget?

With the budget just a couple of days, thoughts are turning to whether the government will take the chance to improve the UK's energy situation.

A poll by the Express - http://www.express.co.uk/news/uk/385203/Budget-2013-Brits-call-on-George-Osborne-to-cap-rising-energy-and-gas-prices - lists freezing/reducing energy bills as a top priority.

However unless there is increased actual investment generating capacity, then energy prices will continue to rise for both residential and commercial customers.

 

Grid Scale Energy Storage - missing an opportunity?

Grid Scale Energy Storage is predicted to be a £100 Billion global industry by 2015.

Energy Storage helps businesses, the economy and the environment.

1. Storing electricity reduces costs, by storing energy generated off peak and selling during times of very high demand, the average cost of energy is reduced.


2. Green technologies like Solar, Wind and Tidal don't produce power when it is required.  Large Scale Storage make these technologies far more viable.


3. Reducing the demand for energy generation at peak times means that the most inefficient generators won't need to be used.  These generators produce the most emissions per megawatt.


4. Grid Scale Storage is a truly global industry, suppliers will have opportunities almost everywhere.  The potential to export knowledge, products and service is huge.

Hopefully with all of this potential the government and our energy suppliers will invest the time and money required to meet our storage needs now and in the future.

 

The Green Book - good for the environment, bad for business

The Green Book: New Directions for Liberals in Government (http://www.green-book.org.uk) brings together 27 leading Liberal Democrats and sympathetic experts to propose radical and innovative new directions for the Liberal Democrats.

Although the full book is not available yet, the introduction and chapters give strong clues as the direction.  More "Green" taxes, hard targets for manufacturers and a reliance on community based generation and importing electricity from our European partners.

Unfortunately for businesses, this reads as higher costs.  Distributed, community generation schemes are not efficient, and will require backup sources to meet the peaks of daily demand.  Importing electricity just moved the pollution to another country.  Great for emissions targets, but higher energy losses equal higher prices.

Energy storage is the biggest issue for Green energy, and one which hold great financial rewards, unfortunately it does seem to deserve a chapter.

 

Overcharging - Faulty Meters

If the meter is faulty, then the supplier is never going to get things right, for example, the meter could record night as day and vice versa, sometimes to the clients benefit, sometimes not.

Many meters, especially larger supplies, have a multiplier fitted.  This means that for every kWh the meter reads, you have actually used 10, 20, 50 or 100 units.  If the multiplier on the meter doesn't match the multiplier on the bill, the error could be anything from double to 100 times the amount of energy you've actually used.  Again this can work both ways, if you have a site which is using much more or much less energy than you'd expect, then checking the meter is a good place to start.

South Haven Power Outage Closes Schools, Causes Disruptions

SOUTH HAVEN, Mich. — Intermittent power outages Wednesday night and early Thursday morning created enough headaches in the city of South Haven that local schools closed for the day Thursday. According to Public Works Director Roger Huff, a problem with ...

Statistical data set: Energy Companies Obligation (ECO) brokerage results

By HM Government

Updated: Results for 17 December published

Brokerage operates as a fortnightly anonymous auction where providers of the Energy Companies Obligation (ECO) can sell ‘lots' of ECO Carbon Saving Obligation, ECO Carbon Saving Communities and ECO Affordable Warmth, to energy companies in return for ECO subsidy.

Below you can find the breakdown of the results:

ECO brokerage results: 17 December 2013 (PDF)

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ECO brokerage results: 3 December 2013 (PDF)

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ECO brokerage results: 19 November 2013 (PDF)

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ECO brokerage results: 5 November 2013 (PDF)

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ECO brokerage results: 22 October 2013 (PDF)

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ECO brokerage results: 8 October 2013 (PDF)

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ECO brokerage results: 24 September (CSV)

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ECO brokerage results: 27 August 2013 (PDF)

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Detailed guide: Oil and gas: decommissioning of offshore installations and pipelines

By HM Government

Updated: Oil and gas: Leadon Draft Decommissioning Programme - added

Overview

The Department for Energy and Climate Change (DECC) regulates decommissioning of offshore oil and gas installations and pipelines using legislation under the Petroleum Act 1998.

Under Section 29 of the Act the Secretary of State is empowered to serve notice on a wide range of persons.

In the first instance this would include parties to joint operating agreements for installations, and owners for pipelines.

The notice will either specify the date by which a decommissioning programme for each installation or pipeline is to be submitted or, as is more usual, provide for it to be submitted on or before such date as the Secretary of State may direct.

A decommissioning programme sets out the measures to decommission disused installations and/or pipelines, and will describe in detail the methods to undertake the work. In some cases this process can cover a wide range of activities such as radioactive material handling, removal of debris from the seabed and environmental monitoring of the area after removal of the installation. The department aims to be transparent in its consideration of decommissioning programmes. As a result, other government departments/agencies, non-governmental organisations, members of the public and other bodies are given the opportunity to comment on the proposals set out in a programme.

Table of draft decommissioning programmes under consideration

Field Name	Field Operator	Status	Main points of the programme	Details
Leadon	Maersk Oil North Limited	Draft programme under consideration	Pipeline bundle to be left in-situ. Bundle towheads and midline structures to be removed. Spools, jumpers, risers and gas import line to be removed. FPSO to be removed and re-used at a different location.	Leadon Draft Decommissioning Programme (PDF, 3.79MB, 61 pages) Leadon Comparative Assessment (PDF, 5.2MB, 90 pages)
Rubie & Renee	Endeavour Energy (UK) Ltd	Draft programme under consideration	Renee production Manifold and Rubie/Renee Sub Sea Completions to be removed. Pipelines to be left in situ & some removed to shore	Rubie/Renee Draft Decommissioning Programme (PDF, 1.62MB, 53 pages) Rubie/Renee Environmental Statement (PDF, 5.47MB, 188 pages) Rubie/Renee Comparative Assessment (PDF, 1.54MB, 63 pages)
Murchison	CNR International (U.K.) Limited	Draft programme under consideration	Topsides and steel jacket to top of footings to be removed to shore. Proposal to leave jacket footings in place.	Murchison draft Decommissioning Programme (PDF, 5.53MB, 53 pages) Comparative Assessment (PDF, 10MB, 107 pages)

Table of approved decommissioning programmes

Field Name	Operator at approval	Operator following licence / company change	Main installations decommissioned	Approved option	Year of approval
Miller (PDF, 6.57MB, 198 pages)	BP Exploration (Alpha) Limited		Large Steel Platform	Footings to remain in place, steel topsides and jacket to top of footings to be removed to shore	2013
Schiehallion & Loyal Phase One (PDF, 1.84MB, 60 pages)	Britoil Limited	-	Schiehallion FPSO	Removal for potential re-use	2013
			Pipelines	Recovery where possible. Production flowlines to be left in situ.	2013
Ivanhoe, Rob Roy	Hess limited	-	FPSO	Removal for re-use at different location	2013
			Subsea installations	Removal to shore for recycling/disposal	2013
			Pipelines	Selective recovery	2013
Camelot (PDF, 488KB, 39 pages) Close out report (PDF, 2.27MB, 41 pages)	Energy Resource Technology (UK) Limited	-	Small Steel Platform	Removal to shore for recycling / disposal	2012
			Pipelines	Pipelines decommissioned in situ	2012
Fife, Flora, Fergus, Angus	Hess Limited	-	FPSO	Removed for re-use at different location	2012
			Subsea installations	Removal to shore for recycling / disposal	2012
			Pipelines	Full removal of un-trenched pipelines; trenched pipelines decommissioned in situ	2012
Don	Britoil Public Limited Company	-	Subsea installation	Removal to shore for recycling / disposal	2011
			Pipelines	Decommissioned in situ with selective recovery	2011
Welland	Perenco UK Limited	Perenco UK Limited	Small Steel Platform	Removal for re-use outside of UK waters	2010
			Pipelines	Decommissioned in situ with selective recovery	2010
Tristan NW Close out report	Silverstone Energy Limited	Bridge Energy UK Limited	Subsea installation	Removal to shore for recycling	2010; close-out report received January 2011
			Pipelines	Production pipeline with piggy-backed umbilical - leave in situ; jumpers, spool pieces and associated pipeline equipment - remove to shore for re-use or recycling	2010; close-out report received January 2011
Shelley Close out report	Premier Oil	-	Sevan Voyageur FPSO	Tow away for future use at another location	2010; close-out report received February 2012
			Manifold and Wellhead	Remove to shore for re-use, recycling or disposal	2010; close-out report received February 2012
			Pipelines	Production pipeline - leave in situ; umbilical - remove in sections	2010; close-out report received February 2012
Kittiwake SAL Export System Close out report	Venture North Sea Oil Limited	-	Kittiwake SAL Assembly	SAL Assembly - removal to shore for re-use. Revision to approved decommissioning programme: Completion of the removal of the SAL Assembly extended to 31 July 2012	2009; close-out report received July 2012
			Pipelines	Pipeline - flexible flowline removed to shore for re-use	2009; close-out report received July 2012
MCP-01 Close out report	Total E& P UK Limited	-	Manifold & Compression Platform	Permit granted for the disposal in-situ of the concrete substructure; topsides to be removed to shore for re-use, recycling or disposal	2008; close-out report received March 2013
Kittiwake Loading Buoy	Venture North Sea Oil Limited	-	Exposed Location Single Buoy Mooring System (ELSBM)	Removals to shore for recycling or disposal	2008
Linnhe	Mobil North Sea LLC	-	Wellhead Protection Structure	Removal to shore. Revision to approved decommissioning programme: completion of the removal of the Wellhead Protection Structure extended to 30 June 2010	2008; year of revised approval: 2010
			Pipelines	Decommissioned in situ; pipeline sections outside trenches removed to shore. Revision to approved decommissioning programme: completion of the abandonment of the pipelines extended to 30 June 2010	2008; year of revised approval: 2010
Indefatigable (Shell)	Shell U.K. Limited	-	6 x fixed steel platforms	Removal to shore	2007
			Pipelines	2 x hose bundles removal to shore; 5 x infield + export decommissioned in situ	2007
North West Hutton	Amoco (U.K.) Exploration Company - now a subsidiary of BP plc	-	Large Steel Platform	Footings to remain in place, steel topsides and jacket to top of footings to be removed to shore	2006
			Pipelines	Decommissioned in situ	2006
Ardmore	British American Offshore Limited	-	Mobile Jack-Up Rig	Re-use	2005
Ardmore	Ugland Nordic Shipping AS	-	Single Anchor Loading Systems	Re-use/removal to shore	2005
			Pipelines	Re-use	2005
Ardmore	Acorn Oil & Gas Limited	-	Subsea equipment including guide frame	Removal to shore	2005
Brent	Shell	-	Brent Flare	Removals to shore for recycling and disposal	2004
Beatrice	Talisman Energy (UK) Limited	-	Fixed Steel Platforms	Re-use	2004
Forbes and Gordon Infield Pipelines	BHP Billiton	-	Infield Pipelines	Decommission in situ - retrench any area of pipeline with less than 0.4m depth of cover	2003; close-out report received May 2005
Frigg TP1, QP & CDP1 Close out report	Total E&P Norge AS	-	Treatment Platform 1 (TP1), Quarters Platform (QP) and Concrete Drilling Platform 1 (CDP1)	Concrete substructures to remain in place; concrete topsides to be removed to shore; steel installations to be removed to shore; infield pipelines to be removed to shore	2003
Durward and Dauntless	Amerada Hess	-	Pipelines	Decommissioned in situ	2002
Hutton	Kerr-McGee	-	Tension Leg Platform	Re-use	2002; close-out report received July 2004
			Pipelines	1 x removal to shore; 1 x decommissioned in situ (with future monitoring programme)	2002; close-out report received July 2004
Camelot CB	ExxonMobil	-	Fixed Steel Platform	Re-use or removal to shore for recycling. Revision to approved decommissioning option: removal to shore for dismantling and recycling	2001. Year of revised approval: 2002
Blenheim and Bladon	Talisman	-	FPSO	Re-use	2000
			Pipelines	Removal to shore	2000
Durward and Dauntless	Amerada Hess	-	FPSO	Re-use	2000
			Subsea Facilities	Removal to shore	2000
Maureen and Moira	Phillips	-	Large Steel Gravity Platform	Removal to shore for re-use or recycling	2000
			Concrete Loading Column	Removal to shore for re-use or recycling	2000
			Pipelines	2 x removal to shore;1 x decommissioned in situ	2000
Brent Spar	Shell	-	Oil Storage and Loading Facility	Re-use as part of quay extension. Revision to approved decommissioning option: Brent Spar Anchor Blocks - removal to shore for reuse, recycling or disposal 1998	Year of revised approval: 2004
Donan	BP	-	FPSO	Re-use	1998
Fulmar SALM	Shell	-	Single Anchor Leg Mooring Buoy	Removal to shore	1998
			16” Pipeline	Decommissioned in situ	1998
Emerald	MSR	-	FPSO	Re-use	1996
			Pipeline	Decommissioned in situ	1996
Frigg FP	Elf Norge	TotalFinaElf Norge	Flare Column	Removal to shore	1996
Leman BK	Shell	-	Fixed Steel Platform	Removal to shore	1996
Staffa	Lasmo	-	Pipelines	Removal to shore	1996
Viking AC, AD, AP & FD	Conoco	-	4 x Fixed Steel Platform	Removal to shore	1996
Esmond CP & CW	BHP	-	2 x Fixed Steel Platform	Removal to shore	1995
Gordon BW	BHP	-	Fixed Steel Platform	Removal to shore	1995
Angus	Amerada Hess	-	Floating Production, Storage and Offloading (FPSO) Vessel	Re-use	1993
Forbes AW	Hamilton	BHP	Fixed Steel Platform	Removal to shore	1993
Argyll, Duncan and Innes	Hamilton	BHP	Floating Production, Facility (FPF)	Removal to shore	1992
			Catenary Anchor Leg Mooring (CALM) Buoy	Removal to shore	1992
			Pipelines	Removal to shore	1992
Blair	Sun Oil	AGIP	Pipelines	1 x Re-use; 1 x Decommissioned in situ	1992
Crawford	Hamilton Oil	BHP	Floating Production, Facility (FPF)	Removal to shore	1991
			Catenary Anchor Leg Mooring (CALM) Buoy	Removal to shore	1991
			Subsea Facilities	Removal to shore	1991
Piper Alpha	Occidental	Talisman	Fixed Steel Platform	Toppling	1988

Notification of disused pipelines

During the course of a field's life, pipelines / parts of pipelines may be taken out of use, e.g. due to corrosion, problems with reservoir pressure, damage to the pipeline, etc. When this happens, under the Petroleum Act 1998 the Secretary of State has the option of immediately calling for a full decommissioning programme. This is not always considered an appropriate option however, and so it has been agreed consideration will be given to handling suitable pipelines, under an informal decommissioning regime, thereby deferring a formal programme until the end of the field's life.

The Interim Pipeline Regime is intended to ensure out-of-use lines do not pose a risk to other users of the sea or the environment and that they are covered by an appropriate surveying and maintenance regime from the point when they are taken out of use until approval of the formal decommissioning programme, which is usually at the end of field life. It should be noted that any interim solution should not prejudice the final decommissioning options for that line, including complete removal.

The department expects operators to submit details of out-of-use pipelines / parts of a pipeline as soon as they are taken out of use. Please email Julie Benstead or complete the
Disused pipeline notification form
(MS Word Document, 82.5KB)
and post to:

Offshore Decommissioning Unit
Atholl House
86-88 Guild Street
Aberdeen
AB11 6AR

If you are an operator aware of any out-of-use pipelines that have not been referred to the Department, please also notify DECC through the same channels.

If a formal decommissioning programme is not immediately deemed suitable, details of the out-of-use pipeline(s) will be circulated to other government departments for comment. Following this, DECC will decide one of the following:

• we are content with the proposals for monitoring and maintaining the out-of-use pipeline


• we request additional information or further remedial action


• we request a formal decommissioning programme

Following confirmation a pipeline has been accepted under the Interim Pipeline Regime, the Offshore Decommissioning Unit will continue to monitor the condition of the pipeline by asking the operator to confirm the status of the pipeline remains unchanged following future surveys.

Further information

A list of all installations on the UKCS and their current status is available from the publications section of the OSPAR website

At the first ministerial meeting of the Commission for the Protection of the Marine Environment of the North East Atlantic (OSPAR) in 1998, a binding decision was agreed that set rules for the disposal of offshore installations at sea. Under the decision the dumping and leaving wholly or partly in place of offshore installations is prohibited. Decision 98/3 recognises it may be difficult to remove the ‘footings' of large steel jackets weighing more than 10,000 and concrete installations. As a result there are derogations for these categories of installations if the internationally agreed assessment and consultation process shows leaving them in place is justifiable.

DECC has been trialling a streamlined decommissioning programme template for non derogation cases during 2013. This has now been extended to 2014. Operators will therefore have a choice whether to submit a decommissioning programme in the existing format (see Annex C of the Guidance Notes ‘Format and Content') or adopt the streamlined decommissioning programme template. Operators should discuss individual cases with DECC. It is anticipated that final version templates for both non derogation and derogation cases will be available for all decommissioning programme submissions during 2014 leading to online versions on the DECC UK Oil Portal during 2015.

Further details on the decommissioning process, including the role and content of a decommissioning programme, are available in the
Guidance notes for industry on the decommissioning of offshore installations and pipelines under the Petroleum Act 1998
(PDF, 755KB, 140 pages)

A
Streamlined Decommissioning Programme Template (Non-Derogation Cases)
(PDF, 1.19MB, 30 pages)
is also available.

Cost recovery

DECC will now charge a fee in respect of offshore (oil and gas) installations and pipelines decommissioning programmes under the Petroleum Act 1998. Guidance, including the indicative fee structure, is available in Guidance – charging a fee for offshore (oil and gas) installations and pipelines under the Petroleum Act 1998.

Recommendation 2006/05

Recommendation 2006/05 was adopted at the 2006 OSPAR Commission meeting, which introduces a management regime for offshore drill cuttings piles. Drill cuttings consist of rock fragments that have been contaminated in some instances with the drilling mud used to lubricate the drill bit in drilling operations. In some cases these cuttings have been discharged to the seabed, where they can accumulate around the base of installations and at remote subsea drilling locations to form what is known as drill cuttings piles.

The management regime for drill cutting piles is based on the results of the work carried out under the UKOOA Joint Industry Project on drill cuttings between 1998 and 2004. The OSPAR recommendation, which the department implements through the provisions of the Petroleum Act 1998, introduces a two-stage approach to identify those cuttings piles that may require further investigation and to assess the best means of dealing with them. Further details, including a copy of the OSPAR recommendation, can be found in the
Guidance notes for industry on the decommissioning of offshore installations and pipelines under the Petroleum Act 1998
(PDF, 755KB, 140 pages)
.

In recent years there has been a significant and increasing number of UKCS licence assignments from large companies to smaller ones. The introduction of innovative licensing schemes has also brought a number of new companies to the UKCS. Ministers have agreed such activity should be encouraged and as well as new developments, there should be free trade in mature offshore oil and gas assets to extend field life and maximise economic recovery. At the same time, the government has a duty to ensure the taxpayer is not exposed to an unacceptable risk of default in meeting the costs associated with decommissioning.

To enable these 2 goals to be achieved, a policy was developed to ensure adequate security for decommissioning costs is maintained on a field-by-field basis. The details of this policy, including the circumstances in which the government may require the owners of offshore installations and pipelines to provide security or enter into a Decommissioning Security Agreement (DSA), are set out in annexes F and G of the
Guidance notes for industry on the decommissioning of offshore installations and pipelines under the Petroleum Act 1998
(PDF, 755KB, 140 pages)
.