Utility Week

UTILITY WEEK | JANUARY 2022 | 27 Talking Points… "Our most immediate priority is to fi x the basics. As we all know, our performance has been unacceptable in recent years and we're focused on getting back on track. Only when we do that can we really build trust with you – our customers and stakeholders – and move forward with the rest of our plan." Sarah Bentley, chief executive, Thames water "Water companies need to be fi nancially resilient and transparent about their fi nancial structures. We have concerns on both fronts that need addressing." David Black, chief executive, Ofwat, unveiling a package of measures on nancial resilience "My three priorities coming up are climate change, climate change, climate change. We really need to refl ect on that and Ofwat is already looking at how to consider for the longer term investments to make the decisions now." Susan Davy, chief executive, South West Water Quote, unquote The news in numbers: 9% Rise in average per capita consumption of water during 2020/21. £158m Amount National Grid and SP Energy Networks have agreed to pay over the two-year delay to the Western Link subsea power line project£967m Balancing Mechanism costs for the three months to September, up from £337 million for the same period in 2020. 555MW Amount of flexibility contracted by SP Energy Networks in its latest tender, bringing its total to date to more than 700MW. 15 Major water projects have had ring-fenced funding approved through the Regulators Alliance for Progressing Infrastructure Development. We all have a duty to tackle fuel poverty Comment Simon Markall Deputy director of external aff airs, Energy UK I n December we marked Fuel Poverty Awareness Day but this is a subject that should already feature prominently in the minds of anyone involved with our sector. National Energy Action, which organises Fuel Poverty Awareness Day, estimates that there are currently 4.5 million customers in fuel poverty and the e• ect of the April price cap rise will see hundreds of thousands, possibly more than a million more households, go into fuel poverty. There's no overstating the gravity of the situation. While price rises related to wholesale are unavoidable, if we are to keep the retail market functioning and avoid the costs that come with supplier failures, we must look to see what we can do to reduce the impact on customer bills from other costs. Energy suppliers have long provided hundreds of millions of pounds in support to customers struggling with their bills – and increased this further when the pandemic started. Before the current crisis intensiƒ ed, suppliers also refreshed existing commitments to support custom- ers. Those suppliers who have signed up to Energy UK's Vulner- ability Commitment have shown numerous examples of initiatives and best practice in going above and beyond to help their most vulnerable customers. Delivering an essential product like energy comes with particular responsibilities which suppliers have always recognised. There has to be, for example, time, support and understanding given to those falling behind on payments. Social responsibilities take prec- edent over ƒ duciary ones. These e• orts haven't always been recognised by those quicker to use the sector as a political football but if nothing else, retail failures have made it clear that supplying energy is a tough business. Suppliers know as well as anyone the struggles some customers face and they also realise that there is a bigger demand for help than they can meet right now. That's why we are calling on government and Ofgem, the regulator, to reduce the impact of policy and other costs for customers at this unprecedented time. They should be looking to spread or remove the costs of supplier failures from bills, taking steps to support a vibrant and resilient retail market in future, and looking for other ways to help customers this spring. Our industry continues to do all it can, but we can't do it alone. When households are facing a• ordability issues right across the board beyond just energy bills, we need others to front up as well. Helping the fuel poor and preventing more people from falling into that bracket is a responsibility for all of us. duty to tackle

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