Utility Week

UTILITY WEEK | 22ND - 28TH FEBRUARY 2019| 21 Finance & Investment Views from the table: Jenny Harrison, nance director, UK Power Networks "The impact of the political and social position we now fi nd ourselves in means utilities have even more to do to explain and demonstrate the contribution we make to society." Brought to you in association with: Abby Farrell, wholesale nance director, Southern Water "The CFO now seems to own the data integrity and the data strategy. Historically that wasn't the case, and that's a big challenge – the vast quantity of data." CFO Insight report Utility Week in association with Oracle interviewed CFOs about the challenges they face and their changing roles. How do you keep shareholders happy and nancial plates spinning at a time of huge upheaval in the secotr? Key points: • Utility CFOs would like to see the debate on pro ts and returns "properly informed" and based on fact not hysteria. • Water CFOs expect a "very challenging price review", especially following the negative credit rating given to some. • CFOs are having to make di… cult decisions around competing demands for investment, such as upgrading ageing infrastructure, climate change resilience and cyber security – and the quality of this decision-making is the di‰ erence between success and failure. • CFOs are far more involved in their businesses than 20 years ago and nance leaders must help drive the CEO's and board's vision for the business, its core operating models and how those can be made better over time. • Brexit is creating uncertainty • New investment streams are opening up, with pension funds looking to support long- term sustainability projects. • Financial decisions will increasingly need to weigh up social good. Download the full pdf for free at:https://bit.ly/2sXnY44 "It's important to be honest about our performance – good and bad." Liz Barber, Yorkshire Water group director of nance, regulation and markets "All this public and political scrutiny is putting regulated utilities under more pressure than they have ever been before." Jane Pilcher, treasurer, Anglian Water "Both Ofwat and Ofgem have made it clear their expectations regarding customer outcomes/outputs will only increase going forward." Richard Khaldi, water specialist, PA Consulting vocal in this area. It was suggested that the widely reported proposed sale of Electricity North West will be an interesting testbed for whether investors are still interested in UK utility companies. There was a general observation that if investors nd the network operator attractive despite the impending reduced returns being imposed in RIIO2, it will strengthen govern- ment and Ofgem's hand in pushing ahead with its strategy – particularly if it's an exist- ing investor in the market. A recent Utility Week report, written in association with Oracle (see box, right) found that CFOs feel they have developed a greater understanding of the operational side of their business, and the larger issues impacting the sector as a whole. But despite the challenges ahead, there is a sense of optimism and an appetite for not just retain- ing value – but adding the highest possible value to their companies. One thing is sure, these are tough times for utility companies, and nance chiefs are faced with numerous challenges. How do you keep shareholders happy and financial plates spinning at a time of huge technological change, tougher regulation and political uncertainty? Utility Week in association with Oracle interviewed CFOs about their challenges and changing role. Brought to you in association with CFO INSIGHT REPORT Why today's CFO needs to adapt to thrive

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