Utility Week

environmental outcomes set out in the government's 25-year environment plan. Last year, government announced that it expects water companies to invest up to £5 billion as part of Winep to improve environmental outcomes from 2020 to 2025. According to the EA, the programme will "help tackle some of the biggest challenges facing the water environment, from the spread of invasive species and low flows, to the effects of chemical and nutrient pollu on". As well as throwing down the gauntlet to water firms by se ng out the Winep obliga ons, the EA is encouraging water companies to work together to deliver innova ve catchment-based solu ons and to share examples of best prac ce in environmental management and saving water (see analysis, p10). The EA is also leading the development of a Na onal Framework for Water Resources, which brings together water companies, regulators and other water users. "We are also suppor ng and facilita ng regional water resource groups," says Dacey. "These regional water resource collabora ons will be crucial to inform the next round of water resource management plans. "We see control and reduc on of leakage as a fundamental component of water resource management planning and work closely with Ofwat on this issue." Collabora on is key Simon Chadwick, central opera ons director at United U li es (UU), agrees that the collabora ve approach advocated by water regulators is integral to building resilience across the sector and transi oning to a more sustainable water system. "The most important thing is to look outside the tradi onal company boundary and build on the interrela onships between the assets of the water companies and the assets of other related sectors and the associated funding regimes," says Chadwick. "At the local level, greater u lisa on of sustainable drainage systems can help improve resilience further in the sector WHAT DOES THE ENERGY REGULATOR SAY? Andrew Burgess, deputy director, electricity network charging and access, Ofgem Our energy system is changing rapidly as we now have more renewable electricity genera on and in the future we will be hea ng homes and businesses with electricity or cleaner forms of gas. New technology and services are developing. Millions of electric vehicles will also be on the roads in the coming decade. We need an energy system that can support these changes at a lower cost to consumers. Together with government we are revamping 20-year-old energy regula on so that it doesn't hamper progress towards a smarter, more flexible energy system. We are working to bring in a smarter, fairer and cleaner energy system. We need to capture the benefits of new technology, new approaches and cleaner forms of electricity genera on and lower the cost of the system for consumers. We also need regula on that supports innova on and new ways to help consumers engage more in the energy market, and cut their bills. There are some areas where the industry is making significant progress. For example, as part of the smart system update, we highlighted the work the industry, the government and ourselves are doing to remove barriers to smart technologies, enable smart homes and businesses and make markets work for flexibility. To date, we have completed 15 of the 29 ac ons and we are commi ed to implemen ng the remaining 14 by 2022. The energy system is changing rapidly, and regula on must change too. In this changing world, firms should focus on changes that deliver real value to consumers. Our work is shaped by five consumer outcomes. I would advise all u lity companies to consider what changes they could make within their business to help ensure that consumers benefit from lower bills, lower environmental impacts, improved reliability and safety, be er quality of service and be er social outcomes. In this changing world, firms should focus on changes that deliver real value to consumers II I N A S S O C I A T I O N W I T H UTILITY WEEK | 29TH MARCH - 4TH APRIL 2019 | 27

• Cover