UTILITY WEEK | NOVEMBER 2022 |
5
KNOWLEDGE WORTH KEEPING
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Nothing is certain,
except uncertainty
This magazine goes to press at a time of complete political turmoil, making it
slightly tricky to write about anything with any degree of con dence.
In the weeks leading up to publication we have seen a partial U-turn on the
Energy Price Guarantee, a row over the introduction of a revenue cap for low-
carbon generators and water companies threatened with £250 million nes for
serious pollution incidents. By the time you read this, there may well be other
interventions, threats or U-turns added to the list. Such is the fevered climate
at the moment, the sector has become almost numb to even the most dramatic
developments.
As our analysis this month shows, one of the few things that unites Con-
servatives and Labour is the policy of talking tough on utilities companies. This
is particularly the case for water company bosses, who were targeted by both
parties in their annual conferences. The sector has become used to these attacks
but despite their growing ferocity the response remains muted. Former Ofwat
chairman Jonson Cox has urged water company bosses to "publicly face into
their performance shortfalls and not hide behind their trade association, Water
UK, or regulators". Is it time for the sector to come out ghting?
Energy retailers, who have faced their own share of public scrutiny over the
past year, are scrabbling to keep up with the U-turns. When the Energy Price
Guarantee was rst announced by prime minister (at the time) Liz Truss, a
pledge to keep it in place until April 2023 would have been widely welcomed.
However, the climbdown from the promise of a two-year freeze has added
unnecessary uncertainty and worry. While nding a more targeted solution
is the right thing to do, serious discussions about this should have been well
underway by now. Well-intentioned though it was, the two-year price guarantee
has ended up wasting a month of planning for a longer-term solution.
Investor con dence is the theme running through much of our coverage this
month, from fears over the impact of a revenue cap on low-carbon generators
to the more immediate headaches caused by rising interest rates for a highly
geared sector. While many of the sector's critics would seek to downplay these
concerns, it is short-sighted to ignore the signi cant need for investment across
the sector – around everything from maintaining resilience, to supporting
customers and progressing net zero. As Energy UK's chief executive has pointed
out, investor trust is taken for granted at the country's peril.
James Wallin, editor, jameswallin@fav-house.com
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Editor
James Wallin,
e: jameswallin@fav-house.com;
t: 01342 332015
Intelligence editor
Nadine Buddoo,
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t: 01342 332054
News editor
Tom Grimwood,
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Senior reporter
Adam John
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t: 01342 332069
Water correspondent
Ruth Williams,
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t: 01342 332069
Policy correspondent
David Blackman,
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Itineris
Customer service is all the more
important as the cost of living
crisis bites
https://bit.ly/3BAp3Sc
Autonomous working: the key to
customer satisfaction?
https://bit.ly/3LLlEop
Letter from the Editor
James Wallin
Mastercard
Billing and payments: Are you
doing enough to support your
customers?
https://bit.ly/3R4RKfA
