Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government
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GAS 13 | Political Agenda 22 | Market view Facing down objectors 19 | Investor view Daniel Wong WATER 6 | Chairman's view Alan Sutherland, chief executive, Wics 15 | Market view Getting contractors onboard 17 | News Severn Trent profits hit 25 | News Social tariff debate ELECTRICITY 13 | News DNOs face £60m hit 18 | Analysis Green subsidies under pressure 19 | Analysis Electricity shares 20 | High viz Statoil's Hywind project 28 | News Ofgem consults on grid balancing Energy 08 | Interview Steve Riley, CEO & president, GDF Suez Energy UK-Europe 14 | Analysis Net closes in on networks 21 | Pipe up John Henderson 25 | I am the customer Joel Windels 25 | News Ovo offers flexible tariff 26 | Analysis Npower's Utility Warehouse deal This week Leader Ellen Bennett Affordability farrago hits regulated sectors There must have been sighs of relief at Millbank this week when the papers landed. "Ofgem orders local electricity companies to cut costs to consumer"; "Ofgem orders electricity providers to cut costs" – a welcome break from the usual "toothless watchdog" rhetoric, played out once again this week when Ofgem's interim chief executive, Andrew Wright, was hauled up in front of the Energy and Climate Change Select Committee (p17). The news that the regulator had sent all but one of the distribution network companies back to the drawing board on their ED1 business plans will have been less popular in network offices up and down the country, however. Contrary to Tim Yeo's assertion that the networks "may be getting away with murder" (p14), these price- egulated businesses are actually held rigorously to account r and, unlike their supplier brethren, had all just proposed cutting their prices, which would have fed through to consumers' bills. This wasn't enough for Ofgem, though, which took issue with cost efficiency at all the networks except WPD. It must be nice for Ofgem to flex muscles it can only dream of in the supply market, but issues with the business plans aside, it's unfair to simply visit the sins of the suppliers on the networks. It wasn't just networks feeling the pinch. As the RIIO fast-track was announced, Labour took the affordability fight to the water sector. The proposal of an amendment to the Water Bill making social tariffs compulsory was another smart political move, hot on the heels of Labour's promised price freeze (should it win the next general election). It's smart because it would give Labour all the credit for "cutting water bills for the poor", while the water companies would shoulder all the responsibility. It seems that all you need to win the argument in the utilities sector at the moment is to cry "affordability". Let's hope sensible dialogue returns in time to stem the flow of renewables investment now leaving the country and resolve the longer-term issues such as abstraction reform. Meanwhile, what's a beleaguered utility to do? Well, selling 770,000 of your retail accounts for £218 million while securing a 20-year guarantee that your wholesale operation (where you make the majority of your profits) will retain their business might not be a bad place to start (p26). Ellen Bennett, Editor ellen.bennett@fav-house.com 4 | Seven days 6 | Opinion Alan Sutherland, chief executive, Wics 8 | Interview Steve Riley, CEO & president, GDF Suez Energy UK-Europe 13 Policy & Regulation 13 | News DNOs face £60m hit 13 | Politics Mathew Beech writes 14 | Analysis Energy networks in firing line 15 | Market view Contractor models for AMP6 17 Finance & Investment 17 | News Suppliers and profit 18 | Analysis Green subsidies under pressure 19 | Investor view Daniel Wong, Macquarie 20 Operations & Assets 20 | High viz Statoil's Hywind project 22 | Market view Facing down the objectors 25 Customers 25 | News Social tariff debate 26 | Analysis Utility Warehouse strikes big with Npower deal 27 | Market view Making the most of social video 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: www.utilityweekawards.co.uk 28 | News Ofgem consults on grid balancing 30 Community 30 | Subscriber focus Neil Whiter, South West Water 31 | Disconnector UTILITY WEEK | 29th November - 5th December 2013 | 3