Utility Week

UTILITY WEEK | 29TH NOVEMBER - 5TH DECEMBER 2019 | 3 This week 4 | Seven days 6 | Election 2019 Labour expands targets for nationalisation 8 | Election 2019 All the main party manifestos at a glance 10 | Election 2019 Utility industry reaction 12 | Election 2019 Trade bodies hit back at Labour 13 | Election 2019 Make smart meters mandatory 13 | Expert view Gordon Allan, Amey 15 Policy & Regulation 15 | News Ofgem to implement fi xed residual charges 16 | Analysis H3O: Ofwat determined to get tough on price 18 | Expert view Rik Gunderson, Software AG 19 | Analysis Is it too late for a water company fi ghtback? 21 Finance & Investment 21 | News Renationalisation not a concern at UU 22 Operations & Assets 22 | High viz The Crossness Pumping Station in east London 19 | Expert view Amy Kemp, Populus 25 Customers 25 | News Severn Trent makes social purpose core 26 | Case study Putting the 'personal' back into customer service 30 Community 31 | Disconnector Mando: Improving experiences for vulnerable customers https://bit.ly/361toNK 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 BASEC: DNOs need tried and tested cabling systems they can rely on https://bit.ly/33WYzYv https://bit.ly/33WYzYv Leader Suzanne Heneghan New realms of renationalisation Santa may be coming to town, but surely Labour's latest vision for the utilities industry is a Christmas wish list too far? This was certainly the feeling among many within the industry this week following the Opposition's manifesto launch. It revealed Labour would add the supply arms of the big six retailers to its utility shopping spree, along with renationalising water and energy networks. One exasperated sector contact summed up the mood by brand- ing the move "absolute fantasy land". And it's been hard to miss similar industry sentiment from others who fear Labour's pledges have now become fanciful – developed in isolation while creating some huge unanswered questions. Top of the tree is what Labour's plan would be for the other suppliers currently competing with the big six. Might they welcome going up against a government monopoly? If so, is this really such a good state investment? Alternatively, would it scrap competition in the market, eƒ ectively signing the death warrant of scores of retail- ers? Or would it ever actually come to that? The devil is in the detail and we would need to know more about Labour's energy model. Co-existence can be successful, as proved in Northern Ireland, albeit on a lesser scale. And not everyone has railed against the Opposition's plans. For instance, its ambition for whole systems change with renewable energy at its core, has chimed well with the Renewable Energy Association. Signiˆ cantly, though, one colossal unknown refuses to go away: the potential impact on investors. Reports that National Grid and SSE have moved ownership of their UK operations oƒ shore suggest the sheer scale of concern – although such news is grist to the mill for an Opposition arguing the grid should be in public hands. Yet the fact remains government will need billions to bankroll net zero. Where will vital investment come from once the bill to bring utilities into public ownership is settled? It feels unlikely to be from a private sector that has had its ˆ ngers burned from nationalisation. Chief executives know there's little to be gained by commenting publicly pre-election. But they also know utilities need to do and build things, quickly, and will be quietly getting their ducks in a row. Currently, there is not enough certainty for any serious invest- ment beyond what is covered by regulation and contract. So most will be hoping this wish list simply disappears up the chimney. Suzanne Heneghan, editor, suzanneheneghan@fav-house.com See Seven Days, p4; Analysis, p6; Comment, p12 COVER STORY 6 | Election 2019 Labour's nationalisation plans just got a whole lot louder ANALYSIS 16 | Water sector braces for tough Ofwat verdict on prices HIGH VIZ 22 | The magnifi cent Crossness Pumping Station CASE STUDY 26 | Customer engagement gets personal

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