UTILITY WEEK | APRIL 2023 |
5
KNOWLEDGE WORTH KEEPING
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Sector facing diffi cult
trade-off s
This month's magazine takes a forward look at the various challenges facing the
utilities sector as we emerge from a di cult winter.
The familiar trilemma trade-o s shine through as we re ect on the need to
tackle fuel and water poverty, while ensuring security of supply and advancing
the net zero journey.
On the latter pillar, the water sector has shown commendable ambition with
its 2030 target. However, the elephant in the room remains the pressing need to
cut down emissions in the wastewater treatment process. Ruth Williams visited
Severn Trent's Minworth plant to „ nd out about the groundbreaking research
the company has done into the possible levels of emissions from the process
(see p30-31).
The „ ndings are alarming, but once the sector can understand the scale of
the task, there is optimism that innovative solutions can be found. However,
these will not come cheap, and with pressure to keep bills low how can the sec-
tor communicate the need for this signi„ cant investment?
On the subject of a ordability, the spring Budget did provide some much-
needed support for energy customers while the fall in wholesale power prices
feeds through to household bills. The freeze in the Energy Price Guarantee (EPG)
at £2,500 is a welcome move but why were we once again in a situation where
the decision was con„ rmed at the 11th hour? While the end result was a positive
one, struggling customers were le' to worry about what April would bring while
suppliers were put in the di cult position of having to set direct debits at the
lower level with no concrete assurance there would be state support.
As Caroline Flint sets out in our interview on p8-10, there is now a clear need
to work towards targeted support for vulnerable customers. Getting this in place
for next winter may prove to be an ambition too far but at the very least serious
discussions on the design and scope of any scheme need to happen immedi-
ately.
With the energy price cap currently predicted to fall below the EPG this sum-
mer, this may herald the return of competition to the market. If so, it is essential
that this does not translate into to the race to the bottom on price that previously
dominated the market. Innovation on tari s and customer service must be a key
component of this new market, but as our analysis on smart tari s onp.12-15
shows, there is a limit to what suppliers alone can achieve.
Of course, the long-term solution to bringing down energy bills is to drive the
proliferation of cheap, low-carbon generation. However, as our analysis on p20-
21 sets out, the planning system remains as a blocker. Currently the planning
process is woefully out of step with government ambition on net zero and this
needs to change rapidly.
James Wallin, editor, jameswallin@fav-house.com
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Editor
James Wallin,
e: jameswallin@fav-house.com;
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Content director: Jane Gray,
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t: 01342 333004
Insights editor
Tom Grimwood,
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News editor
Rob Horgan
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Senior reporter
Adam John
e: adamjohn@fav-house.com;
t: 01342 332069
Water correspondent
Ruth Williams,
e: ruthwilliams@fav-house.com;
t: 01342 332069
Policy correspondent
David Blackman,
e: davidblackman@fav-house.com
Guidehouse
Strategic grid investment now is
money well spent for the future
https://bit.ly/3ZcqkJ2
Automa
Taking control of methane
emissions
https://bit.ly/402J5Q9
Letter from the Editor
James Wallin
Semtech
Standardisation across utilities
https://bit.ly/3luZNZC
