Utility Week

14 | MARCH 2021 | UTILITY WEEK Countdown to COP Analysis No-one must be left behind In the first of our monthly focus pieces ahead of COP26, James Wallin discusses why it is essential the energy transition is all- inclusive and not just aimed at a technically savvy urban elite. N ovember 2007: The iPhone is launched to the UK market. The initial handset costs £269 and is only avail- able on the O2 network at a cost of £35 per month. Responding to the launch, Jonathan Arber, an analyst with Ovum warns that the UK is a nation of prepay users. He says: "That's a huge section of the market that is not going to be purchasing an iPhone. In the contract segment there are a lot of people who are not going to pay £35 a month." Fast-forward just 10 years, and there were an estimated 44 million smartphone users in the UK, with Apple the overwhelming favourite. By 2020, that had increased to 55 million users – equivalent to 83 per cent of the population. It is a parallel frequently cited when dis- cussing the energy transition, highlighting the speed at which new technologies can be adopted and previous habits eroded. It is also a common reassurance when discussing the concept of a "just transition" and the challenge of ensuring that no cus- tomer is le– behind as we move to a smart, flexible and low-carbon energy system. Whether it is around adoption of electric vehicles (EVs), heat pumps or participation in demand flexibility, there is concern that the costs and benefits of these new decar- bonisation tools will not be spread fairly across society. Suleman Alli, director of strategy & cus- tomer service at UK Power Networks (UKPN), is one of those who sees the rapid adoption of smartphones as providing lessons for the energy transition. "The iPhone was a premium device when it first came out," he says. "It was only a sub- section of society that used it. Look at it now. Tech has democractised access to informa- tion and you can get a smartphone for next to nothing. "We need to go through a cycle of explo- ration. And it probably does mean that pro- sumers are going to lead the way to help us understand this. But very quickly, in order to be able to compete and win in a mar- ket, propositions will develop that can be accessed by anyone." But how long will this cycle last, and what will be the cost – on the lives of the most vulnerable and on the reputation of the energy transition? Former Ofgem chief executive, and now Fingleton director, Dermot Nolan says: "Peo- ple will be le– behind, almost certainly. Especially around EVs. "For the first few years it's likely to be about limiting cross-subsidies, trying to limit the impact on the most vulnerable and then over a few years you're trying to roll out some technological benefits from prosumers down to the second wave. That is a second-best transition, but it might be where we go." Net zero is a marketing challenge as much as it is an engineering one and will only suc- ceed if people can be inspired to be active participants. COP26 is a public conversation This is why COP26 matters so much. It is a chance for the UK as host to talk not just to other governments but to the public, both here and abroad. For this reason, SSE, as one of the major partners of the UN's cli- mate conference in Glasgow this November, has made the just transition one of the three themes of its sponsorship. The company's chief sustainability officer, Rachel McEwen, says: "We can be as enthusiastic as we want about tackling climate change but if we don't really think through the social consequences of this we could do untold damage, not just to lives but to the case for action on net zero. "The actions we take and investments we make must be grounded in legitimacy and public consent and if it isn't fair and bad

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