Press release: CMA considers regulation for heat networks

The Competition and Market Authority’s (CMA) study – which began in December – set out to establish whether heat network customers were getting a good deal in areas such as price, quality and service levels.

It has found that, for many, heat networks offer prices which are the same or lower than people on a gas or electricity tariff and have comparable levels of customer service.

But some customers – mainly those living in privately owned or rented properties – pay more for their heat through a heat network and, across the board, heat network customers aren’t getting the same levels of protection that gas and electricity customers receive.

The study found three main areas of concern:

  • Design and build – some property developers may try to cut the upfront costs of installing a network, resulting in higher ongoing operating costs, usually paid for by customers. Heat networks may also be installed where they are the best way to meet planning requirements, rather than the best solution for customers.

  • Monopoly of supply – because customers often have no alternative sources of heat and may be locked into long-term contracts, they cannot hold suppliers to account on price or quality.

  • Low transparency – before moving in to a property, people often don’t know that their energy will be supplied by a heat network and once people are living in the property, customer bills often fail to set out key information.

To address these issues – and given the expected expansion in the market – the CMA’s provisional view is that the sector should be regulated. This will mean:

  • consumer protections for all heat network customers, providing benefits such as complaints handling and access to an ombudsman and support for vulnerable customers

  • steps to improve the design and build of networks

  • all suppliers adhering to mandatory rules and criteria around price and quality in long-term contracts

  • measures to improve transparency including better information on networks, provision of heat supply agreements or contracts and clearer and more detailed bills

Rachel Merelie, Executive Director, Markets and Mergers, said:

“Heat networks can play an important role in cutting carbon emissions and keeping down energy bills, but some customers are not getting a good deal for this essential service.

“There is currently no regulator with responsibility for heat networks, so customers do not automatically benefit from the rights and protections that gas and electricity customers receive.

“Our current view is that regulation is now needed, to ensure that heat network customers receive equivalent levels of protection to gas and electricity customers.”

Some of our recommendations would require primary legislation. We are working closely with the UK government as well as the Scottish and Welsh governments to develop our recommendations.

The CMA is consulting on today’s recommendations until 31 May 2018 and will publish a final report in the summer.

Notes to editors:

  1. The CMA launched its market study into domestic heat networks on 7 December 2017.

  2. Heat networks distribute thermal energy to multiple properties for the use of heating, cooling or hot water. There are around 14,000 heat networks in the UK (of which 2,000 are district heating and the rest communal), together providing around 2% of UK buildings’ heat demand.

  3. The study looked at:

  • Whether customers are aware of the costs of heat networks both before and after moving into a property

  • Whether heat networks are natural monopolies and the impact of differing incentives for builders, operators and customers of heat networks

  • The prices, service quality and reliability of heat networks

  1. The study covers the whole of the UK and the CMA is working closely with governments and stakeholders in all four nations. Heat policy is devolved to the Scottish Government but not to the Welsh Government. Competition and consumer powers are reserved matters for the UK government and are not devolved.

  2. Market studies are carried out using powers under section 5 of the Enterprise Act 2002 (EA02) which allows the CMA to obtain information and conduct research. They allow a market-wide consideration of both competition and consumer issues. Market studies take an overview of regulatory and other economic drivers in the market and consumer and business behaviour.

  3. Further details of the CMA’s market study can be found on the case page.

  4. Media enquiries should be directed to press@cma.gsi.gov.uk or 020 3738 6460 / 07506710174.

Link: Press release: CMA considers regulation for heat networks
Source: Gov Press Releases

Press release: Budget 2018 and Industrial Strategy priorities for Wales

Capitalising on the Industrial Strategy and Wales’ key priorities for Budget 2018 will top the agenda at a meeting of Welsh business representatives and the UK Government in Wales in Cardiff today (10 May).

Secretary of State for Wales Alun Cairns will welcome members of his Economic Advisory Board to Caspian Point where they will explore how the positive impact of the Industrial Strategy can be maximised in Wales. Discussions will focus particularly on exploring Sector Deals, cross-border growth opportunities, removing barriers to innovation and developing new trade and investment deals to increase exports.

Welsh Secretary Alun Cairns said:

The Industrial Strategy is a vital part of the UK Government’s plan to drive growth across the whole of the United Kingdom and create more high-skilled, high paid jobs and opportunities.

New Sector Deals, growth corridors and investment in research and development are set to support the industries of the future where the UK – and Wales in particular – has the potential to lead the world. I’m keen to hear how our key businesses leaders feel Wales can play to its strengths and capitalise on the benefits to be had from embedding the Strategy firmly into our growth plans.

The Economic Advisory Board provides the UK Government with a platform to hear first-hand how businesses in Wales are faring on the ground, to hear their views on how UK Government policy is benefiting them, and what more can be done to support their ambitions for growth.

Today’s meeting will also provide the opportunity to share ideas on the measures the Welsh business community would like to see included in the Budget when it is announced by the Chancellor of the Exchequer in the Autumn.

The Secretary of State will share the proposals with the Treasury for consideration in the run up to the fiscal event later this year.

Alun Cairns added:

Since 2010, the UK Government has been implementing robust measures to help rebuild the Welsh economy.

From the commitment to abolish the Severn Crossing tolls to the City and Growth Deals that span the country, these are firm statements of our intent to boost Wales’ prosperity.

But there is still more work to be done. As we look ahead to the Chancellor’s Budget, it is important for me to have the opportunity to hear the type of policy proposals business representatives in Wales would like the UK Government to consider to further stimulate our economy.

I will be particularly interested to hear their views on the main barriers to growth and what they feel key infrastructure priorities should be. I will be sharing the outcome of these discussions with the Chancellor of the Exchequer to ensure the voice of the Welsh business community is heard loud and clear in Westminster.

Link: Press release: Budget 2018 and Industrial Strategy priorities for Wales
Source: Gov Press Releases

Press release: HR boss banned after diverting insurance pay-out into personal bank account

Dean Jacobs, 29 of Birmingham, was the sole director of L & H Construction Limited, a specialist recruitment company helping people in the mechanical and electrical industries find new work.

But after trading for a little over two and a half years, the business ran into difficulties and L & H Construction entered into administration on 4 January 2017 after HMRC presented a winding up petition for an outstanding tax bill. Upon administration, L & H Construction owed creditors close to £800,000.

Insolvency practitioners were brought in to deal with the administration but Dean Jacobs failed to cooperate with their investigations.

Administrators were then made aware that L & H Construction was awarded an insurance settlement and when asked where the money had gone, Dean Jacobs could not provide any explanation of what he did with the funds.

Further investigations by the Insolvency Service found that despite being fully aware that L & H Construction had stopped trading and owed money to creditors, Dean Jacobs diverted £60,000 from an insurance settlement straight into his personal bank account.

As a result, on 16 April 2018 the Secretary of State accepted a disqualification undertaking from Dean Jacobs. The ban became effective from 7 May 2018 and he is now banned from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company for 10 years.

Susan MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said:

Dean Jacobs put his own interests ahead of the company’s creditors and the timing of the funds he took from the insurance settlement showed a cynical disregard to those creditors.

Directors who put their own personal financial interest above those of creditors damage business confidence. We will take action against directors who do not take their duties seriously and abuse their position and they will therefore lose the privilege of limited liability trading.

Notes to editors

Dean Jacobs date of birth is February 1989 and he is known to have resided in Birmingham.

L & H Construction Limited (CRO No.09278805) was incorporated on 24 October 2014 and traded from Birmingham as a provider of specialist recruitment in the mechanical and electrical industry.

Dean Jacobs was the sole registered director from 25 October 2015 until the company went into administration on 4 January 2017. The estimated deficiency as regards creditors and shareholders was £799,361.

On 16 April 2018 the Secretary of State accepted a Disqualification Undertaking from Dean Jacobs, effective from 07 May 2018, for a period of 10 years. The matters of unfitness that were accepted were that:

On/after 06 December 2016, Dean Jacobs caused an insurance settlement due to L & H Construction Limited in the sum of £60,000 to be paid into his own personal bank account at a time when he knew L&H was insolvent and as a result creditors suffered a loss.

Disqualification

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

  • act as a director of a company
  • take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
  • be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service (England and Wales)

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7596 6187 or 020 7637 6498

Press Office

The Insolvency Service


4 Abbey Orchard Street
London
SW1P 2HT

This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.

For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.

You can also follow the Insolvency Service on:

Link: Press release: HR boss banned after diverting insurance pay-out into personal bank account
Source: Gov Press Releases

Press release: Government calls on technology firms to help tackle the UK’s biggest challenges

Today Minister for Implementation, Oliver Dowden, will announce the first round of competitions for tech specialists to tackle social challenges at the government’s flagship digital conference, Sprint 18.

The competitions will be delivered using the £20m GovTech fund launched by the Prime Minister in November 2017.

Contributing to each of the government’s Grand Challenges – the data economy; clean growth; healthy ageing and the future of mobility – the competition is designed to incentivise Britain’s tech firms to come up with innovative solutions to improve public services.

The Government Digital Service is challenging tech experts to find solutions for specific issues including tackling loneliness and how to reduce plastic waste.

The first of these competitions opens on Monday 14 May and runs for six weeks, with the remaining competitions being launched in subsequent months.

Tech firms bidding to the fund will have free rein to create truly innovative fixes. Winning companies will be awarded up to £50,000 to develop their ideas.

The companies providing the best potential solutions will then be awarded research and development contracts of up to £500,000 to build prototypes. These solutions will then be available to the public sector to purchase.

Minister for Implementation, Oliver Dowden, in the Cabinet Office said:

Our modern Industrial Strategy will cement Britain’s position as a world-leader in digital innovation and this Government is committed to providing more opportunities for tech businesses – including small firms – to access public procurement contracts. The GovTech fund encourages firms to find innovative ways to fix the big social problems we all face – loneliness, plastic pollution and national security.

Through emerging technologies, this fund will elevate British companies onto a global market while helping to deliver outstanding public services and improving lives for people.

Note to editors

The first GovTech competition opens on Monday 14 May for six weeks – see more here. It will be overseen by a dedicated GovTech team which will operate at the heart of Government and oversee the £20 million fund.

The GovTech assessment panel is made up of representatives from Department for Business, Energy and Industrial Strategy (BEIS), The Government Digital Service (GDS), Department of Digital, Culture, Media and Sport (DCMS), HM Treasury, the Innovate UK (the UK’s innovation agency), and the devolved Northern Ireland administration.

Sprint 18 will bring together digital and technology leaders to hear about the work taking place across the public sector to make government work better through the themes of Transformation, Collaboration and Innovation. Discussions will include how the UK is using its status as a world leader in digital government to help other countries, through the recently announced Global Digital Marketplace, and how departments are using Government as a Platform, which uses digital services to make government work better for citizens.

The challenges, which will all be launched in coming months, are:

Identifying terrorist still imagery (Home Office). Home Office research shows that more than two-thirds of terrorist propaganda disseminated online is still imagery. This project will support both Government analysis of, and broader efforts to remove, this harmful material.

Tracking waste through the waste chain, submitted by Department for Environment, Food and Rural Affairs (DEFRA). A new technological approach could help record, check and track waste, helping boost productivity, reduce costs, and protect both human health and the environment.

Tackling loneliness and rural isolation, submitted by Monmouthshire Council. The government recognises that rural transport is vital to local communities, and businesses. A technological solution, exploiting vehicles with spare capacity could support rural economies.

Cutting traffic congestion, submitted by Department for Transport (DfT). Greater collection and new analysis of data could help target interventions to cut congestion.

Local authorities have large numbers of council vehicles crossing their areas every day. If they can be equipped with innovative data capture systems, they could understand potholes, litter, recycling, parking, air quality and more in real-time, every day, for no added cost. This could mean reduced service delivery costs and better local services.

Link: Press release: Government calls on technology firms to help tackle the UK’s biggest challenges
Source: Gov Press Releases

Press release: Baroness Fairhead commits to boosting uptake of government-backed finance

World-class export finance offer

Speaking at today’s (Wednesday 9 May) UK Trade and Export Finance Forum, Minister of State for Trade and Export Promotion, Baroness Fairhead set out the government’s plans to put a world-class export finance offer at the heart of UK trade through UK Export Finance (UKEF).

Ahead of the publication of the Export Strategy, which will outline the government’s vision to boost UK exports, Baroness Fairhead pledged to help more UK businesses access UKEF-backed finance, particularly SMEs and companies that supply to exporters but do not yet export themselves, in order to grow their business.

Baroness Fairhead, Minister of State for Trade and Export Promotion, said:

In UKEF, the UK’s exporters have a world-class export credit agency that can provide innovative, flexible finance and insurance to help them realise their full exporting potential.

Our Export Strategy will specifically aim to make more businesses aware of UKEF’s products and services, helping them to access new opportunities overseas and grow their businesses through exporting.

The draw of UKEF support

Baroness Fairhead also announced the government’s ambitions to generate more business for UK companies through UKEF. Using the draw of UKEF support for major international projects, the government will significantly increase the contribution of UK goods and services suppliers to major projects around the world – an approach that is already creating hundreds of millions of pounds of opportunities for UK exporters.

Baroness Fairhead committed to a review of UKEF’s product suite, to ensure UKEF’s support remains comprehensive and relevant to market needs.

Baroness Fairhead said:

That’s my call to you today. We want to build our Export Strategy with you; and together with you, we can build a nation of exporters.

Baroness Fairhead spoke at the day-long forum, following a speech from International Trade Secretary, Dr Liam Fox MP, who earlier announced an agreement between UKEF and Atkins International, a world-leader in international project management and engineering projects, to grow its UK supply chain and boost UK exports, as well as UKEF support for the Dubai World Trade Centre.

The event included talks and panel discussions from John Mahon, the newly-appointed Director General for Exports at the Department for International Trade; Antonia Romeo, Permanent Secretary of the Department for International Trade; Louis Taylor, CEO of UK Export Finance; Baroness Northover, HM Trade Envoy for Angola and Zambia; and Baroness Nicholson, HM Trade Envoy for Iraq, Kazakhstan and Turkmenistan; senior representatives from multinational companies General Electric and Bechtel; and the CEO of Scottish bus manufacturer and major UK exporter Alexander Dennis.

The Export Strategy will build on the government’s Industrial Strategy, published last November, which set out a long-term plan to boost the productivity and earning power of people throughout the UK.

Background

This year UKEF has increased – and in many cases, doubled – its financial capacity to support exports to over 100 markets around the world, as the UK seeks to enforce its position as a leading player in the global market, and make world-leading UK expertise, products and services accessible to buyers around the world.

In 2017, UKEF was awarded ‘best export credit agency’ by Global Trade Review and Trade Finance magazines.

Media enquiries: Julia Beck, Strategic Communications Manager

Link: Press release: Baroness Fairhead commits to boosting uptake of government-backed finance
Source: Gov Press Releases

Press release: Highways England signs deal to help improve motorway journeys

With research showing road surface quality continues to be an area of concern with drivers, Highways England is committed to improving journeys. The company has signed up 11 firms who can be called upon when there is a need to resurface roads. The deal could see the company spend up to £3.3 billion if it was required.

Highways England’s Executive Director of Operations Nick Harris said:

We know that drivers want and deserve good quality, safe roads which is why since 2015 when Highways England was created we have replaced more than 4,400 miles of road surface.

This new arrangement will help us tackle uneven road surfaces faster, in a more cost effective and efficient way – keeping journeys safer and offering smoother journeys for the millions of drivers who use our roads every day.

It means that, over the next 4 years, Highways England can award contracts to address poor road surfaces across England’s motorway and major A roads without having to go through lengthy bidding processes to get the work done.

The framework arrangement also enables local authorities to utilise the services of the contractors, facilitating greater collaboration.

General enquiries

Members of the public should contact the Highways England customer contact centre on 0300 123 5000.

Media enquiries

Journalists should contact the Highways England press office on 0844 693 1448 and use the menu to speak to the most appropriate press officer.

Link: Press release: Highways England signs deal to help improve motorway journeys
Source: Gov Press Releases

Press release: More than 44,000 responses to future farming consultation

In the last week alone, nearly 20,000 responses were submitted to the ‘Health & Harmony’ consultation which closed on Tuesday 8 May, with farmers, food producers and environmentalists sharing their views on everything from the support we give to farmers and food producers to the broader direction of policy post-Brexit when it comes to the natural world.

Throughout the 10 week consultation, Defra hosted 17 events across the country alongside groups including the National Trust, NFU and the Eden Project, to hear first-hand from more than 1,250 representatives of the UK’s food and farming sectors.

The Environment Secretary Michael Gove said:

It’s great news that so many people have responded so enthusiastically to our consultation. Leaving the European Union gives us the opportunity to improve the support we give to Britain’s farmers. We can make farming more productive, improve the quality of the food we eat and enhance our natural environment. We’ll reflect on the many thoughtful ideas put forward in response to our consultation and bring forward our plans for legislation later this year.

The consultation included proposals to redirect payments under the Common Agriculture Policy (CAP) which are based on the amount of land farmed, to a new system of paying farmers public money for public goods, principally their work to enhance the environment. It highlighted a number of public goods which could be supported such as biodiversity, high animal welfare standards and improved soil health.

A recent WWF poll, undertaken by Populus, found that 91 per cent of the UK public want to see farmers paid to protect nature.

Responses to the consultation will now be analysed carefully and the Government will publish a response shortly.

Link: Press release: More than 44,000 responses to future farming consultation
Source: Gov Press Releases

Press release: 200,000 receive back pay as HMRC enforces National Minimum Wage

HM Revenue and Customs (HMRC) has more than doubled the number of underpaid workers getting the money they’re owed under the National Minimum Wage, according to latest figures.

In 2017 to 2018, HMRC investigators identified £15.6 million in pay owed to more than a record 200,000 of the UK’s lowest paid workers, and up from £10.9 million for more than 98,000 workers last year.

HMRC launched its online complaints service in January 2017, and this has contributed to the 132% increase in the number of complaints received over the last year and the amount of money HMRC has been able to recoup for those unfairly underpaid.

The figures are published as the government launches its annual advertising campaign designed to encourage workers to take action if they are not receiving the National Living Wage or the National Minimum Wage. The online campaign, which runs over the summer, urges underpaid workers to proactively complain by completing an HMRC online form.

The online service is a quick and easy way for anyone with concerns about not being paid the National Minimum Wage to report an employer or former employer anonymously.

Industries most complained about to HMRC include restaurants, bars, hotels and hairdressing.

If you think that you are not receiving at least the minimum wage, you can contact Acas, in confidence, on 0300 123 1100, or submit a query online

Business Minister Andrew Griffiths said:

Employers abusing the system and paying under the legal minimum are breaking the law. Short changing workers is a red line for this government and employers who cross the line will be identified by HMRC and forced to pay back every penny, and could be hit with fines of up to 200% of wages owed.

I would urge all workers, if you think you might be being underpaid then you should check your pay and call Acas on 0300 123 1100 for free and confidential advice.

Penny Ciniewicz, Director General of Customer Compliance at HMRC, said:

HMRC is committed to getting money back into the pockets of underpaid workers, and these figures demonstrate that we will not hesitate to take action against employers who ignore the law.

We urge anyone who is concerned they are not being paid the correct rates to contact us in confidence through the Acas helpline or through our online complaints form.

Further information

  • people not receiving at least the minimum wage can fill in an online pay and work rights complaints form
  • the National Minimum Wage is the minimum pay per hour almost all workers are entitled to
  • it is the responsibility of employers, no matter how big or small, to pay the correct wage to their staff, and failing to do so can result in fines of 200% of the arrears, public naming and, for the worst offences, criminal prosecution
  • see The National Living Wage and Minimum Wage campaign site
  • headline National Minimum Wage enforcement statistics for 2017 to 2018 have been published for the first time in this press release
  • a comprehensive breakdown of National Minimum Wage enforcement statistics will be published by the Department for Business, Energy and Industrial Strategy (BEIS) in late summer 2018

National Living Wage and National Minimum Wage rates

From 1 April 2018, the government’s National Living Wage rate increased by 33p to £7.83 per hour for those aged 25 and over.

The National Minimum Wage increased:

  • by 33p to £7.38 per hour for those aged 21 to 24
  • by 30p to £5.90 per hour for those aged 18 to 20
  • by 15p to £4.20 per hour for those aged 16 to 17
  • by 20p to £3.70 per hour for apprentices

Link: Press release: 200,000 receive back pay as HMRC enforces National Minimum Wage
Source: Gov Press Releases

Press release: UK welcomes Syrian Negotiation Commission

Foreign Secretary Boris Johnson and Minister for the Middle East, Alistair Burt, met with the head of the Syrian Negotiation Commission, Dr Nasr al-Hariri, today to discuss Syria’s future, and the UK’s role in helping to secure a stable, peaceful future for its people.

The Foreign Secretary said:

This visit was a significant opportunity for the UK to discuss with the Syrian opposition our shared efforts to bring this appalling human catastrophe to an end, and stop the suffering that the Syrian people have endured for over seven years.

The regime’s continuation of its brutal offensives, including its use of chemical weapons, and its refusal to engage in negotiations have underlined the challenge of reaching a political settlement. But we remain clear that only a political solution will create a stable, brighter future for the Syrian people. Nasr al-Hariri and the Syrian opposition have again expressed their willingness to engage in direct negotiations with the Syrian regime and Russia without preconditions.

The UK remains at the forefront of the humanitarian response: at the recent Brussels Conference we pledged to provide at least £450 million this year, and £300 million next year, taking the total UK humanitarian funding to £2.71 billion since 2011. This assistance will help to alleviate the extreme suffering in Syria and provide vital support in neighbouring countries.

Further information

Media enquiries

For journalists

Link: Press release: UK welcomes Syrian Negotiation Commission
Source: Gov Press Releases

Press release: Man who attempted to murder four children has sentence increased

A man who attempted to kill 4 young children by beating them with a hammer before deliberately driving into a stone wall has had his sentence increased after the Solicitor General, Robert Buckland QC MP, referred it for being too low.

On 22 August 2017 Owen Scott, 29, was driving with the children, aged between 9 months and 8 years. Possibly due to a cocaine and cannabis-induced psychotic episode, Scott attacked the children with a hammer, striking their heads multiple times. He then deliberately drove his car, containing the children, at over 90 mph into the stone wall of a pub outside Huddersfield.

All 4 children were left with devastating injuries, and medical reports have suggested there may be lasting psychological damage and cognitive impairment. Two of the children require ongoing medical attention, and one will be wheelchair dependent for life.

Scott was originally sentenced to life imprisonment with a minimum term of 13 years 188 days at Sheffield Crown Court. Today, after the Solicitor General’s reference, the Court of Appeal increased his minimum term to 24 years.
Commenting on the sentence increase, the Solicitor General said:

“Four children’s lives have been devastated by Scott’s actions, and the physical and mental scars will stay with them for the rest of their lives. I am pleased that the Court of Appeal has agreed to increase Scott’s sentence to properly reflect the seriousness of his crime.”

Link: Press release: Man who attempted to murder four children has sentence increased
Source: Gov Press Releases