Utility Week

16 | 19TH - 25TH JULY 2019 | UTILITY WEEK Policy & Regulation Analysis W hile its tactics are already losing the shock factor, there is no deny- ing the impact Extinction Rebellion had when it launched its fortnight of frustra- tion back in April. Its approach caught industries and authorities off guard and seemed able to pen- etrate public consciousness about climate change in a way that perhaps only Sir David Attenborough had managed up until that point. The message was a simple and effective one but the evidence base behind many of its flagship demands was shaky. Its call to decarbonise the UK by 2025 is dismissed as impractical by many experts, yet it was deemed a reasonable enough position to be one of the questions posed to the then-five candidates for the Conservative crown dur- ing the BBC's live debate. If there is a pragmatic side to this approach, it is presumably the theory that setting unreasonable demands makes ambi- tious ones seem more reasonable. Even so, the unintended consequence is to make the public sceptical about just what a feat net zero emissions by 2050 really is. Utilities in the firing line The theory is the same for the renationali- sation debate. Labour's shadow chancellor, John McDonnell, said in an interview last weekend that the policy would have "no net- cost" because all the industries being taken back would pay their way. McDonnell was at pains to point out in that interview that he does not see all sectors as ripe for nationali- sation – but utilities are sure-fire targets. He was one of many Labour MPs who turned up for the official launch at Westmin- ster last week of campaign group We Own It's People's Plan for Water – its blueprint for renationalisation. While water has clearly been picked as ostensibly the most straightforward industry to tackle first, that doesn't mean We Own It has no designs on the energy sector. It seems to think multiple nationalisations could be pushed through simultaneously and is work- ing on a people's plan for energy, it says. The hallmarks of the proposals for the water sector are set out in the box (right), but none of it is costed, nor is there any real idea of what the initial price of buying the indus- try back would be. It may appear pointless to engage in this kind of evidence-averse, wishlist approach to lobbying and I'm sure there will be many readers wondering why exactly Utility Week is indulging We Own It's approach. The problem is that the lobby group and the Labour party have adopted a very simple Clamour grows for renationalisation With a new "People's Plan" for water hitting the streets, James Wallin asks whether the sector is making it too easy for renationalisation to gain traction. Utility Week says "The water sector must keep its promises" If promises are going to be set, they must be met. The easi- est way to giš victory to the opponents of privatisation is to backtrack on commitments. That is why Utility Week this year launched its New Deal for Utilities campaign, a platform to show the indus- professionalism. Most impor- tantly, we collectively need to share the roadmap for future success and the solutions to the many hurdles the utility sector has in front of it. If we can move the argument away from accusations about the past and towards aspirations for the future, we can wrestle the agenda back. James Wallin, digital editor try's commitment to forge a new social contract with the public drive forward improvements to resilience, transparency and the role of utilities within the wider fabric of the country. Shadow chancellor John McDonnell admitted to The Sunday Times that he has not spoken to any utility bosses about his fervour for renation- alisation, nor does he intend to because "we have a thorough analysis of where they've gone wrong… I don't need to see the chief executives of the compa- nies to explain that to me". This complacency cannot stand. The sector must be open about the mistakes that have been made since privatisation but also highlight the benefits it has brought and continues to bring in terms of investment and

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