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NETWORK / 43 / MARCH 2019 I N A S S O C I A T I O N W I T H saturated market, u li es must engage more with consumers to ensure they are part of the decision-making process and feel commi ed to their role in helping to deliver the energy and water systems of the future. For water u lity Anglian Water, innova on and customer engagement is intrinsically linked. The company's Innova on Shop Window in Newmarket is a real-world test site that promotes innova on and the development of new technologies to help the business tackle the unique challenges facing the region. Similarly, the digital transforma on across the energy sector is empowering consumers via their smart devices so that they become ac ve par cipants in the system. However, James Robo om, energy lead at the Ins tu on of Engineering and Technology (IET), warns that this digital transforma on poses both an opportunity and a threat to u li es. "It will con nue to change the role of u li es, and where the value lies in the energy system," he says. "Digitalisa on is at the core of a large opportunity to fi nd new business models to capture this value but is also a threat to established ways of working." INNOVATION INHIBITORS Robo om believes the na onal energy transforma on requires a en on to true whole system op misa on, including the emergent smart energy system on the customer's side of the meter, comprising integrated home genera on, home energy storage and electric vehicle (EV) charging. And clear policy from Ofgem will be key. "It is unrealis c to expect network companies to move away from tradi onal solu ons at any great scale, before the regulator has made clear how the companies can earn returns in a world of 'non-build' solu ons and developments such as distribu on system operators (DSOs) opera ng data pla orms," he says. "Arguably, Ofgem is crea ng a barrier to successful long-term energy system transi on through its recent proposals to defi ne 'whole system' op misa on as being limited to the transmission and distribu on regulated networks." Robo om insists that customers' interests would be be er served if Ofgem addressed the issue of true whole system op misa on. He adds: "If this is beyond their current remit, we need policy makers to address some fundamental ques ons about gaps in roles and responsibili es." With concerns that the current regulatory model for energy will struggle to address the transforma on happening across the industry, Robo om believes RIIO2 must help to unlock this. An important aspect will be ensuing that regulatory models adequately support businesses in their investment in smart technologies that are strategically signifi cant and help to drive change in business models and ways of working. For the water sector, the need for further investment is o en a barrier to innova on. Stephanie Hurry, head of water effi ciency and customer par cipa on at Waterwise, raises concerns over the dearth of investment in water effi ciency innova on to date across the UK. "Although water is a key risk to businesses and lack of resilience would impact on households across the country, investment in new technologies has remained focused on energy when it comes to smart ci es," she says. "Water companies tend to be conserva ve and won't invest in technologies that have yet to mature. However, technologies can't mature and demonstrate their eff ec veness without larger TOP TECH The UWL survey looked at the current impact of technology in facilita ng transi on. Respondents were asked to rate 13 technologies on a scale of 1-10, with data analy cs coming out on top, while blockchain technology was considered to have the least impact. Other technologies that are likely to facilitate transi on include: Augmented reality Human-centric design Wearables Quantum technologies Hydrogen as a fuel Automa on technology Advances in telemetry Energy fusion technology Technology Average score 1. Data analy cs 7.6 2. Smart asset management 7.0 3. Energy storage 6.7 4. Smart meters 6.7 5. The Internet of Things (IoT) 6.7 6. Smart grid technology 6.6 7. Electric vehicles 6.4 8 Ar fi cial intelligence 6.4 9. Low carbon heat 5.5 10. Robo cs 5.4 11. Water metering 5.0 12. Water reuse 4.9 13. Blockchain 4.7