Utility Week

UTILITY WEEK | 20TH -26TH MARCH 2020 | 15 Finance & Investment Investment management company Equitix has bought around 187,000 smart meters for £291 million from Smart Metering Systems (SMS). The portfolio, belonging to SMS subsidiary Crail Meters, had an average asset life of around 4.7 years and generated £18.4 million of annual index- linked recurring revenue as of 31 December 2019. Equitix snaps up smart meter portfolio for £291m SMS said it expects to receive £282 million in total. As part of the deal it will continue to manage the devices for Equitix. At the end of last year, SMS had a portfolio of more than 1.2 million domestic smart meters, with a further 2 million on order expected to add around £40 million in group revenue. Alan Foy, chief executive of SMS, said: "This transaction realises considerable cash returns and demonstrates the substantial value of our smart meter portfolio." He added that the portfolio would deliver a significant and sustainable increase in dividends. "With a strengthened balance sheet, we will also be in a much stronger position to invest in the sizeable UK smart meter rollout programme, which UK Power Networks unleashes open data Electricity network operator makes its operational data visible, available and transparent UK Power Networks has launched a new online portal giving "unprecedented access" to its operational data. The information is arranged in three themes: facilitating net zero, network data, and strategy and innovation. The company says the open data will help organisations identify the best location for electric vehicle charging infrastructure. Much of the information is being released for the first time, including details on electricity network equipment and the data underlying UKPN's future energy scenarios for electricity distribution. The network operator is also running a month-long crowdsourcing forum to gather views via social media and email on what other data should be released. Ian Cameron, head of customer service and innovation at UKPN, said: "We know this is a first step in a long road, but we are determined to make as much of our operational data as possible visible, available and transparent because there is enormous potential. "Genuinely creating a collaborative culture around data has the potential to revolutionise this industry and help us build a modern, digitised energy system that's ready for net zero. That's why we're asking the industry and wider stakeholders to engage, comment and tell us what data is most useful. Together, let's use data to unlock the benefits for all." The creation of a data catalogue was one of three key initiatives recommended by the Energy Data Taskforce in its 2019 report. Its chair Laura Sandys said: "The challenge of net zero will only be delivered through collaboration, and sharing and opening up data is crucial to our common mission." TG ENERGY Energy system must adapt to keep pace with innovation The rapidly evolving nature of the energy system may trigger reform of its regulation, the energy minister has said. Kwasi Kwarteng said that while solutions to issues such as heating and power generation might be "politically difficult", they were inherently "quite simple" problems to deal with. He added that the interrelationship between energy systems, networks and regulation was "intellectually very demanding" because nobody has ever tried to decarbonise in the way the UK has committed to by 2050. "We are really in uncharted waters: regulation and institutional architecture are quite challenging issues," he said. "The system that is evolving will be very different to the one we have inherited because it's a completely different model for energy. Our job is to make sure that the institutions as they evolve can keep pace with innovation." WATER Bristol and Wessex hit by credit rating downgrades Bristol Water and Wessex Water have both been downgraded by credit ratings agency Moody's. Bristol, which referred Ofwat's final determination on its business plan for the next five years to the Competition and Markets Authority (CMA), received a "negative" outlook. It was downgraded from Baa1 to Baa2 over concerns about the uncertainty and delay created by the appeal process. Moody's said the downgrade reflected its view that Bristol would be unable to maintain financial ratios in line with guidance for the previous Baa1 rating. It does not expect any increase in allowances to be sufficient for Bristol to restore the former higher rating. Wessex Water, which accepted its final determination, was also downgraded. Its outlook remains "stable", but Moody's reduced the company from A3 to Baa1 because of its "exposure to significant cut" in the allowed wholesale return. Ofwat chairman Jonson Cox last week dismissed fears over the financing of water companies a¦er a ra¦ of credit rating downgrades. He said the threat of downgrades was a tool to put pressure on the regulator. Ofwat's final determination is for Bristol to cut bills by 14.8 per cent. The company is also allowed a wholesale totex of £420.4 million – much lower than Bristol was expecting, and a total revenue of £553.3 million. Wessex has to cut bills by 13 per cent and is allowed £2.1 billion on totex and a £2.4 billion revenue allowance. The company has set out its dissatisfaction that it now has to make cuts instead of investing in resilience. Move will help identify best EV charging locations is central to the establishment of a decentralised and decarbonised energy system," he said. Achal Bhuwania, deputy chief investment officer for Equitix, said: "This acquisition aligns with our business objectives of investing in the country's sustainable energy transition initiatives, which we are excited to be part of." This week ENERGY

• Cover