Utility Week

12 | DECEMBER 2022 | UTILITY WEEK Pan-utility Event Tackling the trilemma The inaugural Utility Week Forum was held in November – bringing together senior fi gures from across the sector to discuss the challenges of balancing sustainability, aff ordability and resilience. What are the consequences of a loss of legitimacy in utilities? This was a topic that repeatedly resur- faced at Utility Week Forum, where speak- ers from across the sector gathered to debate the potential trade-o s in delivering net zero, maintaining security of supply and ensuring this is all done at lowest cost to consumers. One of the key takeaways for me was the concern about a lack of trust in utilities, with energy bills in the eye of the storm that is the cost of living crisis and following a summer of bad headlines for the water sector. It was a point picked up by former Ofwat chair Jonson Cox and the regula- tor's current CEO, who called on company bosses to talk more openly about things like sewage discharges (see coverage overleaf). The conference revealed some titbits from exclusive consumer research by Util- ity Week, in association with Charles River Associates (CRA), into public attitudes to various sector topics. This found that almost 90% of respondents thought govern- ment should at least consider the renation- alisation of energy and water companies. The public perception of utilities is important not just for the sector but also for the net-zero journey. Another dominant theme was that the zeal for hitting net zero remains undimmed across the utilities sec- tor, despite the pressing challenges around a ordability. In fact, many speakers made the point that decarbonisation is the ulti- mate answer to driving down energy use and therefore bills. However, this will require a new way of communicating with the public – with a trusted relationship at its heart. CRA's Simon Ede suggested utilities need to "earn the right to play" in a new-look market where they have a very di erent relation- ship with the customer. The need to encourage domestic " ex- ibility – both as an active part of the energy mix, but also as part of the solution to the cost of living crisis – was raised in several sessions. But again there was concern as to whether energy companies have the legiti- macy to deliver this message. There were frequent calls for government to commit to a proper education campaign about the bene• ts of shi– ing and reducing demand. These were generally coupled with a plea for action on energy e— ciency. For UK Power Networks chief executive Basil Scarsella, resilience is the key to trust. He insisted that if distribution network operators cannot ensure electricity is avail- able to consumers "in any way they wish and not be restricted in when they use it", then they have failed in their duty. Alongside trust, transparency would feature prominently if the conference were condensed to a word cloud. Energy UK's Dhara Vyas, for instance, insisted that "pro• t should not be a dirty word" and that companies have a story to tell about their role in facilitating decarbonisation and why this needs investment to be attracted. These fascinating points will all inform a new initiative to be set up on the back of Forum, which will seek to progress greater collaboration across utilities to build trust and play that crucial role in enabling net zero in an a ordable and resilient manner. by James Wallin View from the chair

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