Utility Week

UTILITY WEEK | 20TH - 26TH SEPTEMBER 2019 | 3 This week 4 | Seven days 6 | Interview Lord Deben, chair, Committee on Climate Change 10 | Utility of the Future In search of limitless cheap electricity with nuclear fusion 15 Policy & Regulation 15 | News Smart deadline may be extended to 2024 16 | Analysis Ofwat faces determined fi ghtback on PR19 19 Finance & Investment 19 | News £500m to be invested in green technologies 20 Operations & Assets 20 | High viz Yorkshire Water's Loftsome Bridge eel screen 21 | Expert view Mark Livingstone, director, Navigant 22 | Market view Transparency is needed 22 | Market view The Internet of Energy 23 | Expert view Kerry Scott, global practice leader for social inclusion, Mott MacDonald 25 | Analysis The skills gap 27 Customers 27 | News Supplier fi nds 26,000 'unsafe appliances' 28 | Interview New 'silent revolution' for gas 30 Community 31 | Disconnector DOWNLOAD: How to beat the digital disruptors at their own game https://bit.ly/2MfKXA8 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. For further information please contact steve.cripwell@synergyoutsourcingltd.co.uk / 020 7932 4171 or toby.selves@synergyoutsourcingltd.co.uk / 020 7932 4116 Double your successful meter installation rate and halve your costs with MATS - the new Universal SMETS2 Commissioning Mobile App from Cloud KB. It works with all DCC Adapters, supplier interfaces, workflow and job scheduling systems. MATS' purpose-built 53 Million Smart Meters by 2020? YOU MUST BE QUACKERS! AN APPSOLUTE MUST IFS: Sponsored report: Getting Ahead in the Diversifying Energy Market https://bit.ly/2MXkFkI Leader Suzanne Heneghan Big news from Ovo We've always known Ovo had big plans – the ambitious poster child of challenger brands and its enigmatic chief executive have always promised nothing less than disruption. But Ovo's bid to acquire SSE's retail arm is a landmark moment, not only for the company but the entire energy industry. In a week of momentous announcements that also saw the European Commis- sion grant Eon leave to take over Npower's parent company Innogy, the big six as we knew them are set to change forever. If the £500 million SSE deal gets the regulatory go-ahead, it will see Ovo's 1.5 million customer base swelled by SSE's 3.5 million. And we will witness a star market agitator – founded a mere decade ago – catapulted into the big league overnight. Ovo, said to have been investing heavily in scaling up, has come up on the inside track. And it's a merger proposition that must surely tick the box on market competition – with an insurgent poised to take over an incumbent. Yet, unsurprisingly, sector speculation is rife about whether this is a masterly stroke by Ovo or a high-risk gamble. The company, renowned for its agile business model and exten- sive (though not universally) digitally savvy customers, is poised to inherit millions of SSE accounts – many of whom will be on stand- ard variable tariŠ s and be less engaged with their supplier. But it is precisely this legacy that one industry source this week viewed as a major factor in Ovo's favour. "One of the key points new brands Ž rst raised was how there was a big chunk of customers who didn't engage and were being disadvantaged. This is a brilliant chance for Ovo to show that even disengaged people who don't move around can get a good deal." Ovo would also be inheriting a loyal SSE customer base, thanks to generally consistent satisfaction levels. Of course, operating on a grander scale in an increasingly low- margin business will bring its own challenges. And any lingering Scottish brand loyalty may be tested north of the border if the companies are ultimately uniŽ ed under one overall name. Nothing is certain in a market where the unexpected is the new normal. Except for the fact that the big six are no longer untouchable. Suzanne Heneghan, editor, suzanneheneghan@fav-house.com MARKET VIEW 22 | The Internet of Energy INTERVIEW 28 | Former Cadent CEO Chris Train COVER STORY 4 | Energy Ovo bids for SSE's retail business INTERVIEW 6 | New Deal for Utilities Debate panellist Lord Deben ANALYSIS 16 | Ofwat faces a fi ght over PR19

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