Utility Week

UTILITY WEEK | 7TH - 13TH FEBRUARY 2020 | 3 This week 4 | Seven days 6 | Utility of the Future Why DNOs must accelerate their transformation into distribution system operators 11 Policy & Regulation 11 | News Ofgem errors will cost customers £800m 12 | Regional growth and utilities An interview with Northern Powerhouse Partnership chief executive Henri Murison 19 Finance & Investment 19 | News £25m of maintenance for Heysham 2 reactor 20 Operations & Assets 20 | High viz Hybrid Air Vehicles' Airlander 10 21 | Market view How to improve the way wastewater treatment assets are managed 22 Customers 22 | News Utility Warehouse to pay £650k after error 24 | Analysis Is the honeymoon over for Ovo 26 | Event Getting the fundamentals right in the battle for customer engagement 30 Community 31 | Disconnector Leader Suzanne Heneghan Brearley steals a march on doubters The hot seat looks like it just got cooler for Ofgem's new chief execu- tive. Leadership is all about timing, and Jonathan Brearley's decision to mark the start of his tenure at the top by releasing a "decarbonisa- tion action plan" seems to be playing well with industry so far (see news,p4). The move has got Brearley ahead of growing dissatisfaction across the energy industry and environmental lobby groups about Ofgem's stance on decarbonisation and the impact on its duties of the 2019 net zero emissions commitment. While the action plan stops short of requesting a formal change to Ofgem's remit – something which was called for in a number of industry forums last year – it squarely acknowledges the need to strike a better balance between protecting the interests of current and future customers, and speci† cally how it can bene† t the latter by incentivis- ing the creation of a zero-carbon economy. Speaking to Utility Week, one industry source described the plan as "an excellent start" – an appraisal Brearley's embattled predecessor could only have dreamed of towards the end of his run in one of the toughest jobs in regulation. Other reviews agree that the action plan has sent out an important and welcome message to an industry and investment community that has been crying out for such certainty for years and which was becom- ing increasingly frustrated with a perceived reluctance at Ofgem to set its policy baseline against the context of the government's legally binding decarbonisation agenda. Likewise, the report's critical nod to anticipatory investment will be welcome news to network operators. They have long argued this is the most eˆ cient way to meet future demands for EV charging and heat – investing in vital infrastructure to get ahead of a wave they have been managing, so far, to just about ride. Brearley's background – notably his early work at the Department of Energy and Climate Change on the Pathways Project; his designs for EMR (Electricity Market Reform) and, most recently, network price con- trols – shows he is steeped in the industry and its future challenges. If he was aiming to convince his industry that he's the right man for the top job at Ofgem at a transformative time for the sector, he's certainly made an impression. What's key now is how he engages with stakeholders to develop the new regulatory tools and approaches needed to make his vision a reality. Suzanne Heneghan, editor, suzanneheneghan@fav-house.com COVER STORY 6 | Utility of the Future DNOs need to get serious about the DSO transition REGIONAL GROWTH 12 | Talking with a Northern accent HIGH VIZ 20 | Taking the emissions out of air travel EVENT 26 | The Utility Week Customer Summit 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

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