Utility Week

UTILITY WEEK | 7TH - 13TH SEPTEMBER 2018 | 3 This week 4 | Seven days 6 | News SSE-Npower merger moves a big step closer to completion 8 | Interview Chris Scoggins, chief executive, MOSL 12 Policy & Regulation 12 | News Higher load factors for CfD schemes 13 | Chief executive's view Johanna Dow, Business Stream 15 Finance & Investment 15 | News Water sector to invest £50bn in 2020-25 16 Operations & Assets 16 | High viz The Jubilee Pool lido in Penzance, Cornwall 16 | Market view How utilities can optimise operational efficiency 19 | Opinion Randolph Brazier, ENA 21 | Analysis The water sector's initiative to resolve bilateral communications 23 | Market view Optimising field force operations 26 Customers 26 | News Action on leakage must be taken now 27 | Market view The development of an open data standard for the energy sector 26 | Analysis Harris Interactive research reveals the smart meter rollout is proving an uphill struggle 30 Community 31 | Disconnector GAS 16 | Market view How utilities can optimise operational efficiency 27 | Market view The development of an open data standard for the energy sector WATER 8 | Interview Chris Scoggins, chief executive, MOSL 13 | Chief executive's view Johanna Dow, Business Stream 15 | News Water sector to invest £50bn in 2020-25 16 | High viz The Jubilee Pool lido in Penzance 21 | Analysis The water sector's initiative to resolve bilateral communications 26 | News Action on leakage must be taken now ELECTRICITY 12 | News Higher load factors for CfD schemes ENERGY 6 | News SSE- Npower merger moves a big step closer 19 | Opinion Randolph Brazier, ENA 23 | Market view Optimising your field force 26 | Analysis Harris Interactive research reveals the smart meter rollout is an uphill struggle Who will shed a tear for Npower? It all seemed to start out so hopefully. Back in the noughties, energy giant Npower fielded a distinctly positive image – an unmissable fixture at England's test cricket grounds where the German-owned company sponsored the quintes- sential English game to build the profile of its recently acquired UK energy supply business. But the dream was soon to turn sour. Npower was later to become synonymous with poor customer ser- vice – consistently coming bottom of the league tables. Little surprise, then, when a proposed tie-up with SSE's retail arm became the only game in town. News that the Competitions and Markets Authority (CMA) has now given a provisional blessing to the merger suggests strongly that the biggest shake-up of the energy sector in years will go ahead (see p6). Given the thrust of the CMA's first stage report, it is hard to see a change of tack when it delivers its final verdict in October. So, what could this mean for the rest of the market? Could we be seeing more movement soon? Well, given that the competition watchdog concluded last week that the blossoming of start-up firms over the past five years should be sufficient to rein in energy prices, it is undoubtedly plausible. There is little in the CMA's conclusions that would preclude further merger activity in energy retailing. Even Citizens Advice, which speaks up for the more vulnerable end of the consumer spectrum, doesn't seem too perturbed about the potential tie-up. Yet, none of what we will we soon be calling the "big five" look to be in as weak a position as Npower did in the run-up to last year's announcement, so have less incentive to consolidate. Meanwhile the introduction of the cap on standard variable tar- iffs will inevitably reduce the scope for companies to undercut one another on their default prices. That said, the CMA's conclusions will be of interest in the board- room of Eon's German parent company as it continues to shuffle its pack of energy businesses. And of course some smaller suppliers – albeit at the more intensely competitive end of the market – are already looking at sell- ing up to cash in on recent growth in customer numbers. The CMA's report is an amber light for further consolidation in the energy retail market. David Blackman, policy correspondent Leader David Blackman 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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