Utility Week

UTILITY WEEK | 19TH - 25TH OCTOBER 2018 | 7 Interview T here's an unerring positivity about Peter Emery when we meet at Electricity North West's central Manchester headquarters. An unseasonal autumn sun has made a surprise appearance in the city, but the Indian summer is not the reason for the network boss's upbeat mood. Two years into his tenure as chief executive and things are going well – despite this being one of the most tur- bulent periods ever for the energy sector, with more uncertainty ahead. "That just makes it all the more exciting," enthuses Emery. "It's actually a really positive time. There's an unprecedented degree of change – which is a handful – but great opportunities. There's a lot to be gained if we get this right." Emery was the new kid on the block when Utility Week first met up with him in 2016. It was apparent he envisaged asking a lot of questions about the regulated monopoly while he bedded in, following roles at Exxon Mobil and Drax. And it was clear he'd soon be driving change and pursuing innovation. Today those plans are materialising throughout the northwest network, with "purpose and principles" in place, several new projects in train, and a workforce closely involved with the process. There's a lot going on, he says, but then there has to be, with changing consumer demand, digitalisa- tion, electric vehicles, decentralised generation, and decarbonisation all competing for the chief executive's attention. It's an emerging picture requiring huge man- agement attention. Yet Emery seems unfazed, albeit quick to point out he advocates evolution not revolution. "It's been helpful coming into the industry without any preconceptions. Also, I have good leadership teams who keep me on the straight and narrow if I get over- enthusiastic. I'm very excited about this business." Emery's vision may well be making ground, yet he has a gargantuan to-do list, including seeing the com- pany fulfil its price control commitments under RIIO-ED1 through to 2023. The number one priority over the next five years, he says, is delivering on ED1 for consumers, on reliability, service and cost. Second is the DSO (distribution system operator) transition, including starting to develop capa- bilities. Third is "working hard" with Ofgem on RIIO2. "It's vitally important that there's a good outcome for ED2 negotiations. The networks are a key enabler of decarbonisation and economic growth and if we don't get RIIO2 right, we're going to be snatching defeat from the jaws of victory." Like many network chief executives, Emery seems broadly happy with RIIO. "This is a negotiation but there's something in it for Ofgem, government, custom- ers and shareholders. And there's incentives to improve. That's a great basis on which to run a business like this. "We've got visibility on the whole process. Our inves- tors are patient capital. At the moment it's very transpar- ent, they understand what the regulator's doing and are making satisfactory returns." Has it been strange adapting to a regulated approach? "Not really. It comes down to it being quite helpful. It is trying to encourage us to improve the business, and we had gaps where we could." Yet he accepts RIIO-ED2 may spell change. "Ofgem is listening but it has a tough job, as do the DNOs [distribution network operators], in such an uncertain environment."

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