Utility Week

UTILITY WEEK | 29TH MARCH - 4TH APRIL 2019 | 3 This week 4 | Seven days 6 | Interview Nicci Russell, managing director, Waterwise 9 Policy & Regulation 9 | News Nolan 'nervous' about heat decarbonisation 10 | Analysis The threat of water shortages caused by climate change 12 | View from the top Chris Russell, managing director, Tonik 13 Finance & Investment 13 | News Interserve collapse hits Pennon profi ts 14 Operations & Assets 14 | High viz Thames Water's sewerage upgrade for Wantage 15 | Pipe up The importance of empowering frontline staff 16 | Conference Sharing experience of dealing with customer debt 18 | Analysis The impact of the recent European Court judgment on the UK capacity market 19 | Chief executive's view David Smith, ENA 21 Customers 21 | News Solarplicity denies SoLR rumours 22 | Analysis Calls for tougher regulation in the business energy switching market 24 | Utility Week Live Does regulation foster transition or hamper it? 30 Community 31 | Disconnector GAS 15 | Pipe up The importance of empowering frontline staff 16 | Conference Sharing experience of dealing with customer debt WATER 6 | Interview Nicci Russell, managing director, Waterwise 9 | News Gove supports cut in River Test pumping 10 | Analysis The threat of water shortages caused by climate change 14 | High viz Thames Water's sewerage upgrade for Wantage ELECTRICITY 13 | News SSEN invests £3m in network technology 21 | News Switching fi gures up on early 2018 ENERGY 9 | News Body to advise on carbon capture 12 | View from the top Chris Russell, managing director, Tonik 13 | News Are subsidy-free renewables viable? 19 | Chief executive's view David Smith, ENA 22 | Analysis Calls for tougher regulation in the business energy switching market Leader Suzanne Heneghan Shelling out "You can be sure of Shell", so the slogan went a few decades ago. Reassuring TV ads featuring glossy cars gliding into lling stations embla- zoned with the company's familiar glowing golden scallop logo, were all part of a long heritage of iconic brand marketing for the road fuel•giant. These days the supermajor's commercial message to the public is moving on fast from just forecourts. The company, which recently proclaimed its mission to be the biggest energy company in the world by 2030, has just cranked up its pro le in the UK energy retail sector. And it suddenly feels like a landmark moment for utilities. Royal Dutch Shell's announcement this week that it was rebranding its energy supplier First Utility to Shell Energy and switching its 700,000 house- holds to renewable power (see p4), was one of the clearest indications yet of its market strategy in this area. Driven by aligning challenges and opportunities – from the societal shiŽ away from dirty fossil fuels, to electricity becoming a key direction of travel on the energy roadmap – a power battle for market share is on. And while the lines of demarcation have already been blurring between oil and utilities companies, it's all been happening rather quietly – until now. Seasoned market watchers will know Shell's interest is no whim. Along with others, such as BP, it has long been busy in the background, testing the water around renewable generation, innovation, battery storage, retail and smart technology – albeit on a relatively small scale, compared with its expansive global operations. Investment strategies have been multipronged, with targeted moves across a suite of lower-carbon solutions, such as electric vehicles, wind and solar. Business models have been – exible, whether it be to build, invest or acquire. Yet the opportunities appear to now be at their most compelling ever, a point con rmed by an industry source I spoke to this week. Shell, they said, had been taking "baby steps" for a while, getting to understand the market. And, as industry's focus shiŽ s towards "securing the energy relationship with consumers" – both at home and on the move – they are feeling bolder and more con dent they can do this, recognising the chances presented by convergence and energy mobility for international players with enough trading capacity to scale up. So, should traditional utilities be worried? Certainly, though some believe it may not be as easy as their new oil rivals think. More used to high-risk, high-return models, there are doubts over how they might fare long term in operating lifeline, regulated companies with com- plex social responsibilities. It should make for an interesting journey ahead. Suzanne Heneghan, acting editor, suzanneheneghan@fav-house.com DOWNLOAD: Reducing bad debt, generating effi ciency and improving the customer journey https://bit.ly/2EbKRH5 See the Community section, page 30 If you are responsible for your company's outsourced or internal customer service centre we can deliver compelling cost savings to your business, with a typical rate for an FTE of just £10 per hour. Synergy operates an established Contact Centre in a modern and thriving part of Durban, South Africa employing experienced and highly educated staff. We already successfully work with a number of UK utilities across a range of services: If you would like to see our operation for yourself we can fly you, at our cost, to South Africa. Here we will give you a full tour of our facilities, a presentation on how we work and access to our professional teams. 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