Utility Week

UTILITY WEEK | 8TH - 14TH NOVEMBER 2019 | 25 Operations & Assets I f you've been thinking about Brexit recently, (and let's face it, most of us have), you'll have noticed the prominent place that Northern Ireland has in negotiations around the UK's departure from the EU. And of course, the focus on Northern Ireland belies its unique circum- stances in the Brexit context. It's not just on matters Brexit that Northern Ireland is distinct. With a multi-utility regulator operating in relatively small markets, in a cross-border context (the single electricity market), and with a di‚ erent model of retail regulation, it is clearly unique. And this uniqueness provides an opportunity. It helps us to use W hen we talk about national critical infra- structure many people forget about the gas network, and how vital it is. Running and maintaining this national critical infra- structure brings with it its own unique challenges. Many parts of our gas network are over 100 years old. The streetscape above A gas network for the future must be part of the national infrastructure debate. Gas Kate Jones Director of West Midlands Network, Cadent many of these pipes has changed beyond recognition since they were installed, and we have even had to move rivers to keep them safe. Even the materials used di‚ ers greatly – our teams are constantly replacing old metal pipes, or even wood or asbestos ones, with modern plastic pipes that are ‰ t for the future. But it is not just our network that we have to respond to – we also have to meet our customers' needs and expectations. Our network must be safe for the communi- ties we serve. As part of the UK's national critical infrastructure we must ensure the security of our network. Our network has to be able to sup- port peak demand and one-o‚ events, such as the Beast from the East. Customers also expect the least possible disruption. Our network must deliver at low cost for the consumer. We also have to consider all of our customers, including those in fuel poverty. And we are also looking to the future – making sure that the gas network, as part of the UK's national critical infrastructure, will deliver on these needs and expectations for years to come. Our day-to-day work, looking at securing our IT systems, monitor- ing our pipes and responding to emergencies, is all about ensuring this national critical infrastruc- ture is ‰ t for the future. We are looking carefully at the future role of gas – helping to get more biogas on to our network, and leading the way in demonstrating the role for hydrogen in the future. The full text of Kate Jones' column can be read at: utilityweek.co.uk A cross-utility focus can bring strategic focus and gains, says Jenny Pyper. Regulation Jenny Pyper Northern Ireland Utility Regulator utility approach really adds strength to our programme of work with vulnerable consum- ers, on things like critical care registers and promoting aware- ness of utility services. There's also a positive bene‰ t in terms of learning and development. Working across three fairly diverse sectors gives us the kind of perspec- tive that allows us to learn and adapt how we do things. We've learnt from our engagement on water network price controls as a basis for engaging consumers, and we've learnt from our work on electricity and gas network price controls. And it doesn't end there, because having the shared knowledge in one organisation across three utility sectors, such as on consumer service measures, adds to the process of developing these for individual utilities. It also promotes a consist- ency of approach, giving a broader dimension to the meaning of predictability that is such a feature of UK regulation. Practically there are also real organisational bene‰ ts of cross utility-working. The UK-Ireland-EU axis across three sectors provides a broad vista for our work, which enriches our learning and allows us to take the best bits from best practice elsewhere. In this regard the UK Regula- tor's Network really adds value to our learning. There is also the big payback as a relatively small cross-utility regulator in the abil- ity of our sta‚ to work on three di‚ erent utility areas under one roof. Being able to deploy our professional sta‚ across the di‚ erent utility areas, such as on our programme of price control reviews, allows us to manage our resources most eŽ ciently. Of course, there is a need to recognise challenges in all of this. Not all of our utilities are at the same stage of their develop- ment. You could also argue that having a mobile team able to work across three utility areas reduces specialisation. There is the real-world chal- lenge of working as a cross-util- ity regulator on a cross-border basis. And this is writ large by the impact of Brexit. Yes, working cross-utility can work, especially in a unique place like Northern Ireland, but we should also not lose sight of some of the challenges we face. "We are looking carefully at the future role of gas." our cross-utility focus to provide strategic coherence and make our work more joined up. Being cross-utility means our strategic objective of enabling a low- carbon future has the strength of being a goal across electricity, water and gas. This alignment provides practical synergies. It has the bene‰ t of allowing us to draw on thinking and analysis across three di‚ erent areas to give a real robustness to our approach. This has allowed us to review and enhance our approach to things like asset management and cost reporting. What's more, this synergy is also a boon to our work on protecting consumers. The cross- Utility Week Congress 2019 was sponsored by Congress review continues overleaf

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