Utility Week

12 | 24TH - 30TH JANUARY 2020 | UTILITY WEEK New Deal for Utilities A renowned proponent of regional growth, it's unsurprising to hear that Northern Powergrid chief executive Phil Jones has been following the emerging political narrative with acute interest. Yet, from the off, he is keen to clarify his own per- sonal position on empowerment of the regions, and the potential impact of any regional agenda on the country's local utilities. "I have never seen the issue through a sort of 'utility lens'," he explains, "though obviously you don't have to talk about it too long before you get to that. "But first and foremost, I see it as welcome news for anyone who's a British citizen. This is good. This is about keeping the country together long term. It's much more around the wider economy – although clearly that at some point picks up infrastructure." And if anything, says Jones, taking the North as an example, it's quite possible that what might come out of this whole discussion is that one area of national infra- structure that doesn't demonstrate a regional disparity is the power networks. "I don't think I've ever heard someone say, 'the trou- ble is the North's under¬invested in its power system. At least, there's nothing to say we're not keeping pace with everybody else. "If we did have a hopeless energy structure in the North, that would be a massive hold-back on the poten- tial of the region to grow. But that isn't the case. If any- thing, [we're] probably better placed." With networks, effectively then, great regional equalisers and consistent performers, it sounds like Jones views them as existing solid foundations, already prepared to facilitate any new future growth. Regional Growth The North is primed and ready It's certainly a concept that would do no harm for their legitimacy - as trusted, reliable providers for the transitioning local communities they serve. And espe- cially now the nationalisation debate has been silenced by the election result. "I think all the evidence is that, if anything, the energy networks are in pretty good shape. They've been well invested in. Which takes us to the argument we were running before the election: the private era has delivered in spades on investment." Jones is keen to reiterate that, while he welcomes the current regional policy debate, it is not just because it could be "a gateway to depositing more money into the regional power networks". Although, he quickly coun- ters, if more money was deemed necessary to boost infra- structure activity, and was on offer, he would obviously not say no to it – particularly with the net zero chal- lenges ahead. "Where there is a need for some form of economic stimulus in these areas to catalyse growth then, yes, low- carbon infrastructure, energy infrastructure, smart cities, are a fantastic way of doing it. Because we are going to have to do that anyway [for net zero]. It's got to happen." It seems, then, an argument that could play either way, though what is unequivocal, says Jones, is the need to address other regional growth issues such as educa- tion outcomes, transport infrastructure, regional power bases and devolution. "Those ingredients that across the world are correlated pretty strongly with prosper- ous regional economies. There's clearly – to quote the prime minister and the government – some 'levelling up' needed. And there has been for ages." As CEO of one of the country's biggest regional energy networks, and chair of the sector's trade body, what does Northern Powergrid's Phil Jones make of the noises coming out of Westminster about a new era of economic change for the regions? Where do utilities fit into the big picture, and how useful could it all prove for reaching net zero? Suzanne Heneghan reports. "I've never heard some- one say, 'the trouble is the North's under invested in its power system'…all the evidence is that the energy net- works are in pretty good shape."

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