Utility Week

UTILITY WEEK | 3RD - 9TH APRIL 2020 | 23 Operations & Assets The fallout of Covid-19 Last week saw the launch of Utility Week's series of #AskUsAnything webinars, in which we discussed with a panel of experts the impact of the spread of coronavirus on the utilities sector. James Wallin reports. Webinar #AskUsAnything W orkforce resilience, the visibility of utilities staff as key workers and the impact of coronavirus on the energy retail sector were all discussed as part of last week's webinar. This was the first of a regular series in which we ask Utility Week members to submit their burning questions on the rapidly changing situation. Last week, Prospect published a survey of its mem- bers in which they shared their concerns around utilities companies' resilience plans, with less than half saying they had confidence in them. Sue Ferns said that in the intervening week, the situation had improved as more concrete plans were put in place. However, she pointed to ongoing uncertainty around access to personal protec- tive equipment. Nick Ellins went on to discuss some of the longer- term issues that employers are likely to face. He raised the point that even for those able to carry out their roles remotely, there would be implications of workload and isolation, which managers needed to be conscious of. Several readers had noted the lack of clarity in the definition of a key worker and Ferns agreed that the guidance from government could be seen as unhelpfully broad. She said some of her members were concerned that their workplaces were still too highly populated, making social distancing difficult. There has also been an issue with some schools and local authorities inter- preting the definitions differently. Ferns criticised the government for not giving due visibility to utilities workers and the essential operations they are carrying out. She said: "We have heard, quite rightly, about the importance of delivery drivers and supermarket workers, as well as the obviously key role NHS staff are providing. Utilities workers are one group where there is no visibil- ity for the value of their role. "This can lead to people who are out doing this work being challenged by members of the public, who think that they shouldn't be doing it. More visibility about the key role that utilities play is important, but we need balance and discipline about how that's applied." There were a number of questions about the utilities sector's reliance on contractors and the wider supply chain and what pressure the current situation would add to that dynamic. Ellins said that from his discussions with major contractors it was clear that there is real concern about the potential for utilities to cut back on all but essential work and the impact this would have on the supply chain. He warned that this could force some of the key players to abandon utilities completely. Maxine Frerk discussed queries about under-recovery of charges and the impact on future years. She said this was an example of how the consequences of the current shutdown will be felt for years to come. She added that suppliers would be particularly hard hit by the respon- sibility to offer payment breaks to customers affected by coronavirus and that the price cap would struggle to adjust to these new pressures. Ferns agreed, pointing to the long-term social justice implications, with many of the most vulnerable groups being hit hardest by the economic impacts of the pandemic. She said there would have to be a wider conversation as to whether the government needed to intervene in the ability to pay off the energy bill deficit once the corona virus pandemic was over. This led to a discussion about whether the govern- ment or regulators should intervene to assist small sup- pliers. A question had been submitted asking whether, in uncertain times, customers would be more likely to trust the big incumbent suppliers to protect their ser- vices. However, Jane Gray pointed out that these legacy retailers already tend to supply more vulnerable custom- ers than the challenger brands do. She suggested the current climate was likely to have a significant impact on switching trends, saying industry insiders were unsure whether to expect a dip in switch- ing as consumers play safe, or a spike as customers with more time on their hands search every avenue for savings. However, Gray highlighted concerns about whether the supplier of last resort process was robust enough to cope with the new pressures. James Wallin, digital editor, Utility Week To listen to a recording of the webinar, visit: https:// utilityweek.co.uk/utility-week-askusanything-webinar-will- coronavirus-change-utilities/ The second webinar will be held on Friday 3 April at 11.45am. You can register here: https://goto.webcasts. com/starthere.jsp?ei=1297437&tp_key=2d703b4dd0 and submit your questions here: https://utilityweek.co.uk/ askusanything-webinar-vulnerability-time-coronavirus/ The panel • Nick Ellins, chief executive of Energy & Utility Skills Group • Maxine Frerk, ex-Ofgem executive • Sue Ferns, deputy general secretary of the Prospect union • Jane Gray, content director, Utility Week

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