Utility Week

UTILITY WEEK | 15TH - 21ST NOVEMBER 2019 | 7 Election 2019 continued overleaf With both investors and the utilities taking the prospect of public ownership seriously, around half of respondents to our survey said they would welcome a pledge from prime minister Boris Johnson to pursue renationalisation of both the water and energy indus- tries, with the over-55s significantly more likely to be against such proposals. Yet industry enthusiasm for structural change is far from forthcoming. Lawrence Slade, chief executive of Energy UK, said private investment in energy, amount- ing to £13.1 billion in the past year alone, had revolu- tionised the industry. It has created a power sector that is world-leading in decarbonisation while creating green jobs, boosting economic growth and delivering increased choice and reducing costs for customers. "Meeting net zero will require continuing investment by private markets and the danger is that a lengthy and complex reorganisation of the sector's ownership struc- ture will jeopardise the billions of investment required and put a check on our progress to net zero, at the very time we need to be stepping up the pace," he says. Trade association Water UK said its research sug- gests that taking essential utilities into government ownership is nowhere near as popular as some politi- cal commentators suggest: "It's clear that people are concerned that nationalisation would risk turning back the clock to the days when service and quality failures were far more common, and cash-strapped governments wouldn't pay for the improvements needed," a Water UK spokesperson said. Satisfaction Customer satisfaction has taken centre-stage across the market, with moves to simplify switching and more vis- ibility around customer gripes. The long-awaited energy price cap, which came into force on 1 January this year, set out to protect customers on poor value default tariffs. Meanwhile, since July last year, suppliers have been required to submit complaints data to Ofgem on a monthly and quarterly basis. They also publish domestic complaints data on their websites, including their "top five" reasons for complaints and the measures they are taking to improve how they handle customer complaints. Our survey certainly found that respondents would like to see the government take more action on bills, the cost of utility services and what are perceived to be excessive profits. Although 41 per cent of respondents said they would like more government action on poor service, our survey suggests high levels of satisfaction among customers. Just 16 per cent of respondents said they did not feel they received good performance and value for money from "The danger is that a lengthy and complex reorganisation of the sector's ownership structure will jeopardise the billions of investment required." LAWRENCE SLADE, CHIEF EXECUTIVE, ENERGY UK NEW ENERGY DEVELOPMENTS IMPROVING UTILITIES NATIONALISATION ENVIRONMENT AND SUSTAINABILITY Yes, we need nuclear power stations in the mix No, we should not seek to build more nuclear power stations Don't know/unsure Yes No Don't know/ unsure Question: Government is consulting on new ways to finance the construction of new nuclear power stations. Do you support this? Question: Assuming utilities remain in the same ownership model as now, what, if anything, would you like to see the government try and act on? Question: Do you think that prime minister Boris Johnson will be a champion of sustainability and the environment? Question: Would you be happy to allow for additional charges to your energy and water bills if it meant that utility companies could invest more in tackling climate change? Question: The Labour party is proposing to renationalise water companies and energy networks if it came to power. Would you like to see the new prime minister Boris Johnson pledge to do likewise? Question: Reducing carbon dioxide emissions from heating and electricity has to be paid for. Which method do you support for paying for this? 40% 64% 54% 53% 49% 46% 44% 41% 2% 36% 25% 51% 25% 24% …for water …for energy Via direct taxation which is fairer to those on lower incomes I think this will slip down the agenda under his leadership I think he will promote and champion this agenda Via a charge added to energy bills – as happens now Don't know/unsure Don't know/unsure 30% 22% 48% Yes No Don't know/ unsure Rising prices Clamp down on excessive profit Leakages (water companies) Poor service Cost of service High/excessive executive pay Incidents of pollution (water companies) Other 51% 50% 29% 21% 25% 24% Yes No Don't know/unsure 38% 42% 20%

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