Utility Week

UTILITY WEEK | 24TH - 30TH JANUARY 20120| 11 New Deal for Utilities Are utilities part of the big plan? Regional Growth Is Boris a new Hezza? Within hours of winning an 80-seat majority for his party – many in Labour's traditional heartlands – prime minister Boris Johnson was in front of the cameras thanking voters in the north of England for "breaking the voting habits of generations". The man who just three months earlier had dubbed himself "Brexity Hezza", appeared to have already convinced some voters he could deliver on the latter part of that nickname – a reference to former Tory wet Michael Heseltine, largely credited for bringing about the regeneration of Liverpool when Minister for Merseyside in the 1980s. Pressure is now ˆ rmly on Johnson from those who put their faith in his promises to the regions – notably, to inject more invest- ment into road and rail links and to "level up" the UK economy. Reportedly, the Treasury is already now rewriting the rule book on public spending to boost growth in areas such as the North and the Midlands. It's claimed existing govern- ment project investment criteria currently favours already prosperous areas. In their manifesto, the Conservatives vowed "to unite and level up, spreading opportunity across the whole United King- dom". "We lead the world in 21st-century technologies, from batteries to bioscience… There are parts of this country that are more productive and more innovative than any- where else in Europe. And yet there are parts of the country that feel le• behind. "Talent and genius are uniformly distrib- uted throughout the country. Opportunity is not. Now is the time to close that gap." Achieving comparable levels of UK growth will require a concerted e˜ ort by all key play- ers within the regions, including utilities. Now Brexity Hezza's victory laps have subsided, those stake- holders will be watching to see what happens next. It was an election issue that rocked Westminster and sent Labour's historic "red wall" tumbling. But how might the new UK government's campaign pledges about regional growth and devolution impact utilities? T he shockwaves of Election 2019's historic Conservative landslide victory may have nally subsided, but its consequences are only just sinking in, and not least for utilities. While the spectre of public ownership has retreated, the industry's attention remains trained on what the new government's policy plans will nally look like – including what its vote-winning philosophy shi€ on regional growth and devo- lution might mean for energy and water companies. Could such regionalism be the sector's opportunity to address the consumer sentiment that lay behind sup- port for renationalisation and be a new way for utilities to build local legitimacy? As the growing disparity in productivity and prosperity between the South East and the rest of the UK became a major political football on the campaign trail (with the North of England proving a de nitive battleground) a ra€ of assur- ances about a better deal on regional funding, critical infrastructure, and govern- ance were made – and noted. There is now huge pressure on the new administration to deliver, with all eyes on the forthcoming Budget, the National Infrastructure Strategy and expected white papers on devolution and energy. Utilities across the UK already know the regions will be vital to Britain's future prosperity due to the country's planned, decentralised journey towards net zero by 2050. And they and their customers will be slap bang at the heart of that regional, clean growth revolution. The sector has been busy developing key projects in various pockets of the country for several years, from creating areas that now boast a thriving, world- leading renewables economy and growing skills base, to overseeing cutting-edge regional trials and pilot schemes forged via strong public-private sector working partnerships. And it's the reason why several key industry players have been supporting the work of regional bodies, such as the Northern Powerhouse Partnership, in bring- ing together a range of stakeholders to foster collaboration, attract investment and help accelerate local economies. As these regional bodies prepare, as promised, to hold the government to account on its (literally) far-reaching manifesto pledges, utilities know they will ultimately be playing a key role in the future vision. Enabling e-mobility infra- structure, clean energy and water resources, and generating the power to service the growing smart cities and regional hubs being talked about, will all require huge coordination and input from the industry. But how imminent a call on utilities' resources and business planning is the rising regional growth narrative likely to be? Do they already feel prepared for such policy opportunities and challenges ahead? And what further political or regulatory support might they need? Utilities have long believed themselves to be truly regional companies. Does the rising noise about regional growth provide them with the perfect opportunity to prove it? not. Now is the time to close that gap." Achieving comparable levels of UK growth will require a concerted e˜ ort by all key play- ers within the regions, including utilities. Now Brexity Hezza's victory laps have subsided, those stake- holders will be watching to see what happens next. The North is ready ☛

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