Utility Week

Utility Week 14th February 2014

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

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UTILITY WEEK | 14Th - 20Th FEbrUarY 2014 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | Opinion Colin Skellett, chief executive, Wessex Water 8 | Interview heidi Mottram, chief executive, Northumbrian Water 12 | Investigation David Green's doomed Ecoisland project on the Isle of Wight 18 Policy & Regulation 18 | News Yeo calls for DNOs to improve storm policy 19 | Market view Comparing European energy prices 20 | Analysis Wacc is the holy Grail 21 | Analysis Sewer flooding 23 Finance & Investment 23 | News Ofwat abandons Thames clawback 23 | Stock watch Centrica and SSE 24 Operations & Assets 24 | High viz Tidal Lagoon Power 25 | Market view Keeping up standards 27 Customers 27 | News Six companies curb final year price rises 28 | Market view What Scottish independence will mean for energy suppliers 28 | Blog Lewis Shand Smith 30 Community 30 | Subscriber focus barry Millar, Waterscan 31 | Disconnector Empowerment is key to community input Megan Darby's investigation into the life and death of David Green, an energy entrepreneur who aimed to turn the Isle of Wight into an "eco-island", is a tale of a very personal tragedy (p12). It also raises wider questions about the government's ambitions for community energy, and the role of non-experts in utilities policy. At the end of January, energy secretary Ed Davey outlined plans to increase community energy's output six-fold to up to 3GW by 2020. While this would remain a relatively measly 1.4 per cent of overall electricity, it is nevertheless a laudable aim that would turn talk of decentralising the energy market from rhetoric to reality. As energy becomes an ever more precious and scarce resource, communities will have to manage and generate it. And there's the rub. Communities by their very nature are not experts at energy generation, distribution, or management. Nor are they oen top- ranking business people, marketers or strategists. If communities are going to play a real role in the future of utilities, they need to be empowered to do so – and that means handing over more than just a cheque. Community leaders of energy projects should be given training in the management skills required and proper oversight, particularly when they have been handed public funds. The respon- sibility for Green was too much to bear. Though the situations and individuals involved are very differ- ent, there are parallels to be drawn with how customers are being brought into the regulatory process in the utilities sector. Customer input is at the heart of the RIIO and PR14 frameworks. As the partici- pants in the water industry customer challenge groups can testify, the learning process and commitment required for a non-expert to make serious and significant contributions to the oen techni- cal debate is huge. And it doesn't stop there. When they are up to speed, they are working sometimes more than 60 hours a week to get business plans across the line – and oen unpaid. If regulators and government want to maintain this level of customer input, they need to develop a framework which includes support, training and remuneration. A "big society" is all very well, but the state must fulfil its obliga- tions to those upon whose contributions it relies. Ellen Bennett, Editor ellen.bennett@fav-house.com GaS 23 | Stock watch Centrica and SSE 25 | Pipe up Chris hope WaTEr 7 | Expert view Karma Ockenden 8 | Interview heidi Mottram, chief executive, Northumbrian Water 20 | Analysis Wacc is water's holy Grail 21 | Analysis Sewer flooding 23 | News Ofwat abandons Thames clawback 26 | Market view Keeping up standards 27 | News Six companies curb final year price rises ELECTrICITY 18 | News Yeo calls for DNOs to improve storm policy 24 | High viz Tidal Lagoon Power ENErGY 12 | Investigation David Green, Ecoisland 18 | Political agenda Mathew beech 19 | Market view Comparing European energy prices 28 | Market view What Scottish independence will cost suppliers 28 | Blog Lewis Shand Smith The 6th National Utility Week Consumer Debt Conference is a must attend for all utility companies and telecoms operators who want to their collection procedures and reduce consumer debt. At this one day event you will: get the latest updates on the Retail Market Review; find out how smart meters will improve prepay services; understand how to assess the latest technology to enable customers to manage their bills; learn how to identify vulnerable customers; explore new methods to develop an efficient payment extension; understand how investing in customer segmentation can improve collection and minimise bad debt. 26 March, Holiday Inn, Birmingham city centre Website: www.uw-debt.net

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