Utility Week

UTILITY WEEK | 6TH - 12TH JULY 2018 | 3 This week 4 | Seven days 6 | News Professor Martin Cave is set to take over as chair of Ofgem 8 | Interview Steven Edwards, chair of the regulatory committee, Energy Networks Association 11 Policy & Regulation 11 | News Watchdog says cheap green power is viable 13 | Chief executive's view Michael Roberts, Water UK 14 | Analysis Can marine renewables stack up against offshore wind and nuclear? 16 | Pipe up Nick Ellins, chief executive, Energy & Utility Skills 17 Finance & Investment 17 | News Investment trumps dividends at Thames Water 18 Operations & Assets 18 | High viz The UK's first energy-positive office at Swansea University 21 Customers 21 | News Amendment could delay energy price cap 22 | Analysis Coping with sudden surges and drops in demand on the grid 25 | Analysis Can the UK stay in the EU's ETS or the IEM after Brexit? 26 | Event Looking for common ground at this year's Energy Summit 28 | Analysis Lessons from those who have already embraced blockchain 30 Community 31 | Disconnector GAS 21 | News Northern Gas Networks group calls on customers to engage WATER 13 | Chief executive's view Michael Roberts, Water UK 17 | News Investment trumps dividends at Thames ELECTRICITY 11 | News Watchdog says cheap green power is viable 14 | Analysis Can marine renewables stack up against offshore wind and nuclear? 22 | Analysis Managing swings in demand during the World Cup ENERGY 6 | News Professor Martin Cave set to head for Ofgem 8 | Interview Steven Edwards, Energy Networks Association 18 | High viz The energy-positive office in Swansea 21 | News Amendment could delay energy price cap 25 | Analysis UK participation in EU schemes post- Brexit 26 | Event Energy Summit 28 | Analysis Lessons about using blockchain Questions to answer in the seat of power It's a big job, but who better to take the Ofgem chair than the man who championed the retail price cap? Certainly, that must be what business secretary Greg Clark thought when he proposed Professor Martin Cave to lead the regula- tor through one of the biggest shake-ups for energy bills this winter. But could it really be that straightforward, even for a highly expe- rienced regulatory economist whose specialist subject is competition law? While he'd gain support from some quarters for bolstering Ofgem's stance with suppliers, he'd face some tricky rounds himself aer taking over from David Gray – someone generally well thought of by the industry. And what might be the three toughest questions Cave could face aer sliding into the top seat? The first must surely be how to maintain institutional knowledge levels and continuity when Gray finally walks out of the doors at Canary Wharf, following some other big recent Ofgem departures. His strong networks background will be particularly missed during the RIIO2 review. The second would be how to answer any concerns about the change raised by the two different sides of the sector. Those in networks will be hoping to see the reasonably apoliti- cal regulation of monopolies continue, while those in supply and generation will ask what the political appointment could mean for them. As one industry source predicted: "Ofgem looks set to stay far more politically involved than it ever really should be." Yet dealing with the contradictory nature of government – which champions free markets until they create results that play poorly with voters – sounds like it could be an ongoing challenge for a Cave tenure. The third big question must be how the regulator's chief execu- tive might react to his new boss. The relationship between Cave and Dermot Nolan would be key as Ofgem steps up to oversee the energy transition. Building that relationship, and understanding who does what – both in the public eye and out of it – would need to be at the top of Cave's list. (See Inside Story, p6.) Suzanne Heneghan, acting editor, suzanneheneghan@fav-house.com Leader Suzanne Heneghan Knowledge worth keeping Subscribers to Utility Week can access premium content and exclusive research, available to read online or as downloadable documents. http://www.utilityweek.co.uk/

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