Utility Week

Utility Week 18th October 2013

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

Issue link: https://fhpublishing.uberflip.com/i/192720

Contents of this Issue


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GAS 26 | News £9m boost for Scottish energy efficiency 28 | News Europe faces energy security threat WATER 6 | Viewpoint Alan Sutherland Wics 16 | Market view Let water companies disaggregate 22 | High viz United Utilities' aqueduct ELECTRICITY 8 | Interview Brent Cheshire, Dong Energy 14 | Market view Tough times for biomass 18 | Market view ROCs versus CfDs 24 | Market view Distributed generation: a threat and an opportunity 27 | Market view Helping the hard to reach Energy 13 | Political Agenda green taxes are splitting the coalition 14 | Analysis What will Europe think? 17 | News Ofgem and transparency 23 | Pipe up we must all try to stop energy theft 24 | Market view Outsourcing field operations 26 | I am the customer Mervyn Kohler, Age UK 28 | Open market Stephen Fitzpatrick, Ovo Energy This week Leader Ellen Bennett 4 | Seven days 6 | Opinion Alan Sutherland, Wics 8 | Interview Brent Cheshire, UK country chairman, Dong Energy Miliband's challenge must be faced down 13 As industry leaders from electricity, gas and water gathered at the Utility Week Congress in London this week, there was one story on everybody's lips. Ed Miliband's proposed energy price freeze continues to reverberate throughout the industry, causing by turn irritation, anxiety and outright anger. The Labour leader scores an A for politics, if nothing else. His proposal seized the spirit of the moment. The next election will be fought on the cost of living, and in water as well as energy, affordability is now the overriding concern for the electorate and hence for their elected representatives. But the other two sides of the energy "trilemma" remain. Sustainability and security of supply are not going to go away, and energy companies do not have the luxury of thinking only as far ahead as the next election. So what are they to do? Two things became clear at the Congress. First, no one believes a price freeze would work. The energy companies would say that, wouldn't they – but Decc's director of energy markets Simon Virley, surely an impartial witness, seems to agree. He admitted it was "extremely difficult to see how EMR is compatible and consistent with a price freeze". Second, energy suppliers truly believe they have nothing to hide. Eon chief executive Tony Cocker called on the Competition and Markets Authority (formerly the Competition Commission) to launch a full investigation into the sector. When pushed, he even said Eon might consider referring the market to the CMA itself. A CMA investigation would cause a year or more of uncertainty for the market, which would affect investment to some degree. But frankly, thanks to Mr Miliband, investors are going to be twitchy until 2015 at least, no matter what else happens. Let's be realistic: it's going to get worse before it gets better. SSE will not be the only supplier to hike its rates this winter and there will be further price rises in the years ahead. The suppliers say they are charging a fair price and making a fair profit. Let's get away from Miliband's mudslinging and see whether an independent group of experts agrees. Ellen Bennett, Editor ellen.bennett@fav-house.com Policy & Regulation 13 | News Oettinger hits out at energy policy nationalisation 13 | Politics Mathew Beech writes 14 | Analysis Will UK energy policy initiatives fall foul of EU rules? 15 | Market view Biomass takes some knocks 16 | Market view Let water firms split up 17 Finance & Investment 17 | News Ofgem to revisit issue of profit transparency 18 | Market view ROCs versus FITs with CfDs 22 Operations & Assets 22 | High viz United Utilities' Haweswater aqueduct 24 | Market view Outsourcing field operations 26 Customers 26 | News Energy bosses call for competition inquiry 27 | Market view Helping the hard to reach 28 Markets & Trading Utility Week's annual Utility Industry Achievement Awards will once again be held at the Grosvenor House Hotel in London's Mayfair. Put 9 December in your diaries for the biggest events date in the utility calendar. More than 1,200 of the great and the good of the utility industry will meet to toast the winners and share a glamorous evening of dancing and entertainment accompanied by a celebrity host. This year's categories are: Capital Project Management Award; Community Initiative of the Year; Customer Care Award; Digital Utilities Awards; Environment Award; IT Initiative of the Year; Marketing Initiative of the Year; Staff Development Award; Supply Chain Excellence Award; and Team of the Year. 9 December, Grosvenor House Hotel, London Website: http://www.utilityweekawards.co.uk/ 28 | News UK and Denmark interconnector 30 Community 30 | Subscriber focus Ryan Davies, Wessex Water 31 | Disconnector UTILITY WEEK | 18th - 24th October 2013 | 3

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