Utility Week

I N A S S O C I A T I O N W I T H UTILITY WEEK | 25TH - 31ST JANUARY 2019 | 25 7.1), smart meters (4.8 versus 6.0), electric vehicles (4.2 versus 6.3) and M&A ac vity (4.1 versus 4.9). Other trends likely to drive transi on include climate change and step changes in sustainability, as well as changes in government, changes in workforce and convergence of services. Headline trends rela ng to new technologies are likely to include the digitalisa on of energy, the Internet of Things and augmented or virtual reality. "Different people will have different interpreta ons of what the energy transi on means, and this will naturally colour their view of what outcomes are expected and desired," explains Stewart Reid, head of DSO and innova on at Sco sh and Southern Electricity Networks (SSEN). "Clearly there is a pressing need to decarbonise, and to do so in an affordable manner for households and businesses. Our role is to enable opportuni es, iden fying and facilita ng new markets which can accommodate different perspec ves, and aspira ons for delivering a low-carbon, secure and smart energy system," he says. While Reid admits that there remains uncertainty across the industry about what the transi on to a decarbonised, decentralised and digitalised system will look like in prac ce, for SSEN it will almost certainly introduce a fundamental change in the company's rela onship with its customers. "Customers engaging with energy in new and innova ve ways will have greater opportuni es to harness energy, through small-scale renewables, balance against peak load, perhaps through their electric vehicle or ba eries owned in the home and provide demand side response," says Reid. "For SSEN it's important to be prepared for, and where appropriate help manage this transi on. It is unclear how these new technologies will interact, ASK THE INDUSTRY On a scale of 1-10, to what extent do you think your industry is in a state of transi on? John Sco , director, Chiltern Power "There are some great things happening with real innova ve technologies coming through but I'm s ll le wondering how these new innova ons will be scaled up and rolled out reliably if we haven't got whole system thinking." George Day, head of markets policy and regula on, Energy Systems Catapult "I would score this as 6 and growing. There is lots of innova on and new ideas, but incumbents (and our beloved gas boilers) are s ll dominant and looking difficult to shi in many market segments." Ian Barker, managing director, Water Policy Interna onal "I would score this at a 6-7, especially on core issues such as customer engagement, resilience and the environment. But it really is a mixed picture across the industry." Stewart Reid, Head of DSO and Innova on, SSEN "As an industry we are clearly past the point of return on the transi on to a flexible network. If a passive network scores 1, and a fully flexible network is a 10, I would put the industry at a 5." David Elliot, group director, strategy and new markets, Wessex Water "Some businesses are clearly transi oning more than others. The industry itself is probably around 5 or 6." Andrew Burgess, deputy director, electricity network charging and access, Ofgem "One of the exci ng but also challenging factors is uncertainty about the scale and pace of change. We've already seen quite a lot but there's more to come. As regulator, we are challenging the industry to respond and ensure consumers benefit. My view is 8 to 10 and there are many sta s cs that demonstrate this." As regulator, we are challenging the industry to respond and ensure consumers benefit II

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