Utility Week

UTILITY WEEK | 14TH - 20TH DECEMBER 2018 | 3 This week 4 | Seven days 6 | Inside story The Pensions Regulator takes Southern Water to task 8 Policy & Regulation 8 | News Government: Ofgem should regulate heat 10 | Analysis A review of 2018 15 | Analysis The range of new resources now available on utilityweek.co.uk 16 | Market view Why the smart world needs the right data 17 | Voices Laura Sandys presents the case for redesigning regulation 19 Finance & Investment 19 | News Thames Water profits plunge by 69 per cent 20 Operations & Assets 20 | High viz The Harvard Center for Green Buildings and Cities' HQ 21 | Expert view Martin Wells, partner, KPMG 22 | Market view How water companies can put the customer first 23 | Market view Capgemini makes some predictions for 2019 24 Customers 24 | News Yorkshire: 'We want frank discussion' 25 | Chief executive's view Chris Earle, Verastar 26 | Analysis Energy firms fight fuel poverty 28 | Market view Learning from Royal Mail 30 Community 31 | Disconnector GAS 10 | Analysis A review of 2018 WATER 6 | Inside story TPR takes Southern Water to task 19 | News Thames Water profits plunge by 69% 22 | Market view How water companies can put the customer first 24 | News Yorkshire: 'We want frank discussion' 28 | Market view Royal Mail lessons ELECTRICITY 20 | High viz The Harvard Center for Green Buildings and Cities' HQ ENERGY 8 | News Government: Ofgem should regulate heat 15 | Analysis New resources available on utilityweek. co.uk 16 | Market view Why the smart world needs the right data 17 | Voices Laura Sandys on redesigning regulation 21 | Expert view Martin Wells, KPMG 23 | Market view Capgemini's 2019 predictions 25 | CEO's view Chris Earle, Verastar 26 | Analysis Energy firms fight fuel poverty 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 Water still in regulators' sights The year appears to be ending just as it began – with water sector finances back in the spotlight. This time around the salvo comes not from environment secretary Michael Gove about businesses with "opaque financial structures", but the pensions regulator, which rapped Southern Water for prioritising shareholder dividends over payments into the company's pension pot – despite the scheme's multimillion-pound deficit. As one industry observer in our analysis on p6 points out, it's not a good look. As a result of the intervention, Southern will now pump £223.5 million into its scheme over 12 years to clear the shortfall quicker, compared with £170.5 million under its old plan. Publicly, the company has responded well, also introducing a sharing mechanism with the scheme, to kick in if dividends exceed a certain level. Privately, it will feel like another stark reminder that water busi- nesses and their financial models remain very much in the sights of regulators – and policymakers. With some tough feedback expected on PR19 business plans due in the new year, and the political mood music around renationalisa- tion ever present, the end of the year hasn't delivered the gladdest of tidings for water company executives. And things don't look any easier for the year ahead. Strong voices As regular readers know, Utility Week prides itself on reflecting what is happening at the very highest level of our industry, including what leaders are really thinking about the burning issues driving the utilities agenda. With this in mind, in this issue we launch "Voices", a series of regular, thought-provoking opinion columns from some of the most respected voices within the sector. Reflecting on the key developments of the day and the challenges ahead, they will inform timely and frank debate and, where appro- priate and possible, aim to help engender change. This exclusive, rolling programme of insightful comment, which will continue throughout 2019 in what promises to be another landmark year for utilities, is one not to miss, as can be seen on p17 where our first regular contributor, Laura Sandys, offers recommen- dations for redesigning regulation. Suzanne Heneghan, acting editor, suzanneheneghan@fav-house.com Leader Suzanne Heneghan

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