Utility Week

UTILITY WEEK | 9TH - 15TH NOVEMBER 2018 | 3 This week 4 | Seven days 6 | Interview Steve Robertson, chief executive, Thames Water 9 Policy & Regulation 9 | News Scotland aspires to net zero emissions 10 | Analysis Last Budget before Brexit 12 | Analysis The deep, dark waters of utility renationalisation 14 | Chief executive's view Matthew Wright, UK managing director, Ørsted 15 Finance & Investment 15 | News Ofwat carrot and stick for Severn Trent 16 Operations & Assets 16 | High viz United Utilities solar farm 17 | Market view Smart metering is about more than cheaper bills 18 | Event Optimising the customer journey 22 | Market view Meeting the data-hungry demands of RIIO2 23 | Market view Utilities can combine talent and technology 25 Customers 25 | News Ofgem confirms level of energy price cap 26 | Awards case study Best Customer Facing Team 2018 29 | Market view Get customers on your side 30 Community 31 | Disconnector GAS 12 | Analysis The deep, dark waters of utility renationalisation WATER 6 | Interview Steve Robertson, chief executive, Thames Water 15 | News Ofwat carrot and stick for Severn Trent 16 | High viz United Utilities solar farm ELECTRICITY 14 | Chief executive's view Matthew Wright, UK managing director, Ørsted 22 | Market view Meeting the data- hungry demands of RIIO2 26 | Awards case study Best Customer Facing Team 2018 ENERGY 9 | News Scotland aspires to net zero emissions 10 | Analysis Last Budget before Brexit 17 | Market view Smart metering is about more than cheaper bills 18 | Event Optimising the customer journey 23 | Market view Utilities can combine talent and technology 25 | News Ofgem confirms level of energy price cap 29 | Market view Get customers on your side Between a Roc and a hard place Scarcely a week passes without another gale battering suppliers trying to navigate the increasingly hostile landscape that is now the energy retail market. This past week has been no exception, with no fewer than three "whammies" threatening to squeeze margins and frustrate future business planning. In no particular order, the first – and perhaps most worrying – was that aer an unprecedented 34 companies were late making their Renewables Obligation Certificate (Roc) payments for 2017/18, as-yet-unconfirmed reports state that several have now missed the final deadline – potentially adding up to a £50 million funding gap. All eyes are now on what happens next and, most pertinently, who will be expected to plug any gap. It's a fair question from a sector that has only just bailed out yet another failed small player through the market's supplier of last resort (SoLR) mechanism and levy, a fund borne by other retailers and, ultimately, their customers. Entering the mix on Tuesday came the definitive answer as to what the price cap will be on default tariffs. At £1,137, it was just £1 higher than the proposed amount. While no surprise for an industry long reconciled to the controversial policy, its repercussions for all retailers are still unknown – prompting renewed calls for Ofgem to get this critical market intervention right, particularly on whole- sale price increases, operational costs and sufficient headroom for competition. Meanwhile, just a few days earlier a letter from the regulator had landed on suppliers' desks reminding them about their smart meter commitments. As the great rollout continues its journey towards its 2020 deadline, Ofgem pointedly instructed suppliers to "learn les- sons" from mistakes made in the advanced meter rollout, particu- larly around programme governance, customer engagement and interoperability. There are a lot of pronouncements and questions around. Although resigned to the cap, the SoLR, smart meters and market volatility, suppliers who are keeping their side of the regulatory and service bargain are finding this an increasingly frustrating time in an ever tougher, unpredictable environment governed by some strug- gling market mechanisms. As one Utility Week source put it, for now it seems all we can be sure of is to expect the unexpected. 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

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