Utility Week

20 | 18TH - 24TH OCTOBER 2019 | UTILITY WEEK Finance & Investment Almost a third of businesses claim to have delayed innovation projects in the past 12 months due to the political uncertainty over Brexit, research from Schneider Electric has revealed. The research, published in the company's 'Rethink Energy' report on 15 October, found 31 per cent said they had delayed projects while 13 per cent had cut budgets for key PAN-UTILITY 'Brexit uncertainty' halts investment in sustainability projects projects, including those aimed at tackling sustainability. In total, 400 large businesses were surveyed, along with 120 SMEs and 2,000 UK consumers. While sustainability remains "firmly" on the boardroom agenda, the number of busi- nesses choosing to delay projects has increased by 25 per cent in the past two years, Schneider Electric claimed. The research found that while businesses view sustainability and efficiency as a long-term necessity, 74 per cent fear that implementing sustainable work- ing practices will have a negative impact on their bottom line, up from 54 per cent in 2017. Eighty- five per cent of business leaders said they felt torn between doing the right thing for society and the right thing for their business. Ovo Group surpasses £1bn in revenue Group results reveal a 25 per cent increase in revenue, but an operating loss of £51 million The Ovo Group exceeded £1 billion in revenue but saw gross profit fall by £52 million in 2018. Releasing its latest financial results for the year to 31 December, the group revealed a 25 per cent rise in revenue to £1.042 billion, while at the same time posting an operating loss of £51 million. The company's gross profit was £94 million, which was down from £146 million in 2017. It made a loss before tax of almost £54 million, compared with a £6 million profit in 2017. Ovo's customer base grew by 39.3 per cent, finishing the year with 1.3 million customers. During the past year, the company has continued to invest heavily in new technology through its Kaluza divi- sion. Ovo is also now supplying energy to households in France, and has plans to supply energy to domestic customers in Spain and Australia by the end of the year. Stephen Fitzpatrick, chief executive and founder of Ovo, said: "The energy industry is going through enor- mous change, driven by new technology, digitisation and the falling cost of renewables and storage. "We have been investing in market-leading technol- ogy to support the energy system of the future, both in the UK and internationally, with the 2018 results in line with our financial plan." Ovo recently announced its intentions to severely shake up the energy retail market with its planned acquisition of the retail arm of big six incumbent SSE for £500 million. In February, Japanese firm Mitsubishi purchased a 20 per cent stake in the business for £200 million. AJ ELECTRICITY WPD spends £4.2m to safeguard supply Western Power Distribution (WPD) has announced it is spending £4.2 million on safeguarding power supplies to 18,000 customers in Nottinghamshire. The work involves installing two new 33kV circuits from Toton to Long Eaton, rebuilding Toton and Long Eaton sub- stations and decommissioning existing cable circuit and overhead lines. The cabling work began in early October and is expected to be complete by 31 May next year. ELECTRICITY ENW to replace overhead lines Electricity North West (ENW) is replacing overhead power lines in Uppermill, Greater Manchester, with underground power cables, as part of a £150,000 project. The company said the network upgrade will maintain supply to almost 1,000 homes and increase resilience in bad weather. Tony Broome, operations manager at ENW, said: "The overhead power lines have been in place for 56 years and are coming to the end of their operational life. "It's our job to make sure that everyone in the North West constantly receives a reliable power supply and that's why we're investing £150,000 install- ing 750m of new underground power cables." GAS Cadent in £3.5m mains upgrade North West gas network manager Cadent is investing £3.5 million to upgrade mains in Cheshire. Cadent says 27,000m of underground pipes will be replaced in Winsford over 12 months. The work will upgrade some pipes that have been used since the 1940s. More than 87 per cent of the town's 13,000 homes use gas for central heating. The underground pipes are reaching the end of their safe working lives and have been identified for replacement as part of a UK-wide programme. ELECTRICITY SSEN's £8m cable project in next phase SSEN's £8 million upgrade programme to improve the resilience of central Reading's electricity infrastructure is now reaching its next phase. The multi-million pound project involves the replacement of nearly 4km of high-voltage underground cable and the upgrade of the local substation serving the town's residential and business customers. The works will futureproof the network and its supply, allowing further commercial and residential connections. Fitzpatrick: results 'in line with financial plan' The biggest drivers of sustain- ability initiatives for large busi- nesses are long-term financial stability and improved brand reputation. Meeting government sustainability targets and help- ing to mitigate climate change were also top five drivers. SMEs were six times more likely to only make changes to cut their impact on the environ- ment if legislation demanded it. This week

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