Utility Week

8 | JANUARY 2022 | UTILITY WEEK Annual roundup Comment The most-read stories on Utility Week in 2021 The past year has seen regulatory tussles, game-changing acquisitions, turmoil in the energy retail market and the emergence of a roadmap for net zero. But what were the stories that got Utility Week members clicking most in 2021? Utility Week editor James Wallin gives his take on what our analytics tell us about the topics that mattered most to you. I n any conversation with a utilities sec- tor leader, it will be only a matter of time before talk turns to regulation. And so, it was natural that the top-read stories of last year on the Utility Week website were domi- nated by major developments in the relation- ship between regulator and regulated. Of course, 2021 was the year of the appeal and it was appeals that dominated our top- read stories. March saw the culmination of the long-running PR19 saga, in which four water companies challenged Ofwat's final determinations on their five-year busi- ness plans. The principal point of conten- tion referred to the Competition & Markets Authority (CMA) was the cost of equity. When the CMA returned its interim verdict in September 2020 it offered a radically differ- ent equation for this crucial metric. However, by the time its final judgement was delivered the return to investors had been revised from 3.5% to 3.2%. It was in this febrile atmosphere that our most clicked on piece of content emerged. Just two weeks before the CMA opined on the water sector, the gas and transmission year. Follow-ups with the chief executives of UK Power Networks and Western Power Distribution, in which they delved into their plans to set up Distribution System Operator (DSO) functions, also featured highly. On the Move While regulation was one of the most tan- talising topics of the year, it was challenged by the intrigue of senior figures in the sector swapping chairs. And one of the best-read stories of the year combined these two pas- sions. In February, then Ofwat chief execu- tive Rachel Fletcher announced a shock move to Octopus Energy as their director of regulation and economics. A™er a year embroiled in the CMA appeals, Fletcher could be forgiven for wanting a quieter life in the tranquil pastures of energy retail. Of course, it didn't quite work out that way. Other top people moves of the year, judg- ing by interest from Utility Week members, included Nicola Shaw's departure from National Grid, Pauline Walsh stepping down from Affinity Water and a flurry of appoint- ments at Ofgem early in the year. Energy retail meltdown As alluded to above, the energy retail mar- ket proved anything but predictable in 2021. Throughout the year, and for many before- hand, senior figures across the sector had urged the government and regulator to look at fundamental reforms to allow sustain- able businesses to flourish and sharp prac- tice to be eradicated. Scant regard for these concerns was expressed in the Department UtilityWeek JANUARY 2021 JANUARY 2021 UTILITYWEEK.CO.UK The drive to net zero The energy sector finally gets a roadmap to decarbonisation INTERVIEW: Peter Perry, CEO, Welsh Water ENERGY: Has Ofgem done enough see off CMA referrals? CUSTOMERS: How to tackle new forms of vulnerability WATER: Smart networks could be a game changer THE BUSINESS OF UTILITIES UtilityWeek FEBRUARY 2021 FEBRUARY 2021 UTILITYWEEK.CO.UK Trouble in store Mounting consumer debt signals uphill struggle for utilities INTERVIEW: Jonathan Brearley Chief executive, Ofgem ENERGY: Where do we go after the Energy White Paper? ELECTRICITY: DNOs give RIIO-ED2 a cautious welcome WATER: Tackling diffuse pollution at source THE BUSINESS OF UTILITIES UtilityWeek MARCH 2021 MARCH 2021 UTILITYWEEK.CO.UK TRANSFORM WITH CONFIDENCE Photo: SSE UtilityWeek MAY 2021 MAY 2021 UTILITYWEEK.CO.UK PAN-UTILITY What's the big idea behind the National Infrastructure Bank? COUNTDOWN TO COP A lot more storage is needed to balance intermittent renewables PAN-UTILITY The pandemic is bound to see a wave of household debt Moving target Emissions reductions goals get even more ambitious TRANSFORM WITH CONFIDENCE UtilityWeek JULY 2021 JULY 2021 UTILITYWEEK.CO.UK INTERVIEW United Utilities CEO Steve Mogford COUNTDOWN TO COP Why local energy planning is essential for decarbonisation UTILITY WEEK LIVE SUMMIT Smart water networks and the new customer service reality Remaking energy retail How the sector can thrive in a net zero future TRANSFORM WITH CONFIDENCE UtilityWeek SEPTEMBER 2021 SEPTEMBER 2021 UTILITYWEEK.CO.UK ELECTRICITY Making the capacity market fit for net zero REGULATION Do strategic policy statements serve regulators right? WATER Taking the carbon out of wastewater treatment TRANSFORM WITH CONFIDENCE Asleep at the wheel Will auto switching drive consumer disengagement? ENERGY BEIS hydrogen strategy hedges bets on heat WATER Getting to grips with water process emissions ENERGY Utility Week sets out on campaign for retail market reform Energy retail smashed Wholesale price surge wreaks havoc on fragile market UtilityWeek OCTOBER 2021 OCTOBER 2021 UTILITYWEEK.CO.UK TRANSFORM WITH CONFIDENCE AWARDS Utility Week 2021 Awards shortlist revealed ENERGY RESET Customers will pay in the end for string of supplier failures GAS The sector must prepare the ground for hydrogen Keep it clean Water firms challenged over sewage discharges, but where's the funding? UtilityWeek DECEMBER 2021 DECEMBER 2021 UTILITYWEEK.CO.UK TRANSFORM WITH CONFIDENCE Utility Week is privileged to count all of the major water, gas and electricity compa- nies among our membership base, with a strong following in boardrooms across the sector. Our coverage is informed by reference to detailed analytics of what companies across the utilities eco-system are reading. Throughout 2022, we will be using this data to present monthly snapshots of the hottest topics both pan-utility and within particular sectors, alongside analysis of the emerging trends. These reports will be available exclusively to members of Utility Week, with an annual overview to be pub- lished in our January print magazines. networks had to decide whether they would challenge their own settlements from Ofgem. In the end all eight of the companies did so, with the cost of equity once again in the crosshairs, along with the much-maligned outperformance wedge (the 0.25% reduc- tion to allowed equity returns to account for outperformance). While these two appeals were o™en dis- cussed in the same breath, they were differ- ent beasts, with the energy challenges on specific points rather than whole redetermi- nations. Probably for this reason, the CMA returned a far swi™er, and less controversial, response in energy. There was little signifi- cant variance between dra™ and final pro- nouncements, with the companies gaining no ground on the cost of capital but claiming the scalp of the outperformance wedge. It will be interesting to see how Ofgem approaches the issue of the wedge in its determinations for the electricity distribu- tion networks, who presented their business plans at the start of December (see p22-23). A deep-dive into the detail of their dra™ plans was our third best-viewed story of the How some of the stories of the year were covered across our monthly print magazines

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