Utility Week

THE SHAPE OF WATER With Ofwat preparing to publish its ini al assessment of business plans as part of PR19, the issue of transi on and planning for future challenges is high on the water agenda. But what does this period of change and its resul ng uncertainty mean for water companies in real terms? The UWL survey took an in-depth look at the state of transi on across the sector and some of the major barriers that risk impeding progress for water companies. Currently, the sector is seen to be in a greater state of transi on than individual businesses. On average, respondents scored their business at 7.0 and the wider industry as 7.4. According to one respondent, transi on in the water sector means "delivering customer expecta ons in a cost effec ve and efficient manner". Similarly to energy u li es, the customer must be both catered for and an ac ve par cipant in the water sector's transi on to a smarter, more resilient and more sustainable future. But Ian Barker, managing director at consultancy Water Policy Interna onal, raises concerns that the sector is not yet doing enough to engage with its customers. "Adop ng new technologies, smart metering in par cular, will be a major part of this move to be er engagement with customers," he says. The UWL survey found that water metering is expected to reach its pping point for mass take-up in 2026, while water reuse technologies will be a li le slower un l 2029. Overall, Barker admits it's a "mixed picture" across the water sector. The approach to environmental issues exemplifies this, with some companies excelling, while others really struggle to meet standards. Barker says: "Technology will play a role in monitoring areas such as sewerage and wastewater. But ul mately companies must be more proac ve in dealing with issues long before they become a serious problem." Mark Smith, chief execu ve of consultancy WRc, which ones may be favoured by households and businesses, and crucially the speed with which they are taken up." "Electricity networks must be prepared to accommodate significant and poten ally rapid change during the energy transi on," he adds. Sara Vaughan, director of poli cal and regulatory affairs at Eon UK, is confident that the industry's colossal transforma on will deliver a future that is decentralised, decarbonised and digital. "Eon, and indeed the wider energy industry, are u erly unrecognisable from when I joined; and it is not the same industry now as it will be in the next ten years," says Vaughan. "We've made huge strides in decarbonising the UK economy – to that point, carbon emissions have declined to levels last seen at the end of the nineteenth century and have fallen 42 per cent since 1990. "We're seeing a similarly seismic shi with u li es, moving from large, integrated, centralised companies towards becoming digital-oriented, customer-focused organisa ons." Vaughan believes consumers must be at the heart of the transforma on of the current energy landscape. While taking advantage of new technologies, such as solar panels, smart thermostats, electric vehicles and ba ery storage, there must also be thought given to how homes and businesses can play a key role in the way the energy system operates. And energy efficiency should be the key star ng point, according to Vaughan. "We believe [energy efficiency] should be made a na onal infrastructure policy, so we can tackle the seven million-plus customers with solid wall homes currently without adequate Ultimately companies must be more proactive in dealing with issues long before they become a serious problem. II P R E S E N T S 26 | 25TH - 31ST JANUARY 2019 | UTILITY WEEK Ian Barker, managing director, Water Policy International

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