Utility Week

UTILITY WEEK | 12TH - 18TH OCTOBER 2018 | 3 This week 4 | Seven days 6 | Inside story A report from the Labour and Conservative conferences 10 | Interview Matthew Vickers, chief executive and chief ombudsman designate, ombudsman services 13 Policy & Regulation 13 | News Penrose calls for 'bold' review of watchdogs 15 Finance & Investment 15 | News Gresham House plans £200m battery fund 16 Operations & Assets 16 | High viz Yorkshire Water's thermal hydrolysis plant in Bradford 18 | Market view Effective communications are vital to a zero-carbon future 19 | Chief executive's view Danielle Lane, UK country manager, Vattenfall 20 | Awards case study The Pollution Prevention initiative at South West Water 23 Customers 23 | News Toto ranks bottom in customer service 24 | Analysis Only a third of customers who complain are happy with the response they get 28 | Analysis Water companies set out their plans to deal with extreme weather events 30 Community 31 | Disconnector GAS 13 | News 'Exploit' CCS and biomass technology 16 | High viz Yorkshire Water's thermal hydrolysis plant in Bradford WATER 13 | News Redwood urges more water competition 23 | News Minister questions structure of sector ELECTRICITY 23 | News Consumers to shape future of EV charging ENERGY 13 | News SMETS1 deadline extended – again 15 | News Spending review to focus on efficiency 15 | News Green group invests £1.6bn in first year 18 | Market view Communications and zero-carbon 19 | Chief executive's view Danielle Lane, UK country manager, Vattenfall 24 | Analysis Most utility customers who complain are unhappy with the response 28 | Analysis Water companies' plans in the wake of the Beast from the East Changing times ahead for regulation B link and you might have missed it, yet the potential creation of a new utility "super-regulator" was quietly unveiled last week. What felt like the Conservatives' response to Labour's call to renationalise utilities didn't feature in chancellor Philip Hammond's speech to party conference. It appeared instead amid a package of measures, featuring a root and branch review led by the National Infrastructure Commission (NIC) into the world of UK regulation and including the potential establishment of a single, multi-utility regulator. Utility Week, however, was quick to seize on the news, amplified 24 hours later by a junior minister to delegates at a gathering tucked away on the fringes of the political media circus. But while industry voices have not been short on reaction or theories, most noticeable is that no-one seems particularly surprised by any of it – despite the development potentially affecting utilities' business models for years to come. In fact quite the opposite. The feeling is that a review was inevita- ble – overdue even – given that little about regulation has changed for decades, but the energy, gas and water landscapes have shied radically. Certainly, during a debate on the future regulation of utilities at Utility Week Congress this week, those regulators present accepted that there were examples of a single regulator model working in other countries. However, as Ofwat's Rachel Fletcher pointed out, the key ques- tion was less about whether there were fewer or more regulators, and more about how to answer some of the huge future challenges ahead – such as how you get investment through efficiently, how you help the country become more productive, and how best to deal with vulnerability and affordability issues. Either way, tackling those factors together is something regulators are likely to be expecting to do much more of in the months ahead. It remains to be seen whether a shake-up ever happens. Some industry voices speculate that the news is merely a cynical ploy to send a warning shot across regulators' bows. Whatever the findings of the NIC's review, and whether they lead to a super-sized authority or not, there has been a fundamental shi in the way we are now thinking and talking about regulation in response to a new, far wider narrative. Suzanne Heneghan, acting editor, suzanneheneghan@fav-house.com Leader Suzanne Heneghan Talend: Sponsored Free Water Case Study: optimising water supplies https://bit.ly/2CEQQpf IFS: Sponsored report: Getting Ahead in the Diversifying Energy Market https://bit.ly/2MXkFkI Unify: Sponsored Free Water Case Study: Transform CX and deliver exceptional omnichannel experiences https://bit.ly/2CEQQpf

• Cover