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UTILITY WEEK | 14Th - 20Th March 2014 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | Opinion Mark Powles, chief executive. Business Stream 8 | Interview richard Bienfait, chief executive, Affinity Water 13 Policy & Regulation 13 | News Ofgem to investigate slow storm response 14 | Market view The burden of EMr falls on energy suppliers 15 | Analysis Two fast-tracked in water 16 | Market view The UK is not alone on emissions 19 Finance & Investment 19 | News Senior investor not put off by lower Wacc 20 | Market view It's time to look again at gas 21 | Analysis What will Osborne do with the carbon floor price? 22 Operations & Assets 22 | High viz Dong Energy 24 | Analysis ENW's take on training 25 | Expert view hP talks tipping points 26 | Market view renewables and rural communities 27 Customers 27 | News Fallon signals action to aid heavy industry 28 | Market view Smart meters and small suppliers 30 Community 30 | Subscriber focus Judith Shapiro, ccS association 31 | Disconnector Fast-tracking leaves many in the slow lane The wait is over and for all but two water companies, the result this Monday was a crushing disappointment. Some companies would have privately known that "enhanced" status could be nothing but a pipe-dream, while others would have been optimistic of securing that coveted accolade. In the event, the two that did, South West Water and Affinity Water, would not have been the odds-on favourites (see our interview with Affinity chief executive Richard Bienfait on p8). Ofwat has been clear about the reasons these two succeeded (analysis, p15), and as Karma Ockenden suggests in her Expert View on p7, it's highly likely they will accept the conditions outlined by Ofwat in January and progress to fast-track status. It's good news for them, since they will be able to enjoy a package of benefits including multi-million pound financial incentives, financed by increases in customer bills, which is a bizarre reward for having made those bills affordable in the first place. What of the other companies? Whatever disappointment, frustra- tion and anger they felt on Monday morning will stay hidden. It would be a brave company that criticised the regulator in the mid- dle of a price review, though plenty will be turning the air blue in private. As water companies struggle to get to grips with a brave new world (PR14, the Water Bill, competition, affordability, increased flooding, new technologies) the pace of change can sometimes seem staggering. The many changes happening to PR14 en route can only add to this sense of disorientation, though as Ockenden points out, the companies will be relieved to be spared the hurdle of being sepa- rated into "standard" and "resubmission". This does mean, though, that all the companies have to effectively resubmit – a further round of judgement being handed down, with companies graded "good" or "bad", with all the impacts on staff morale and investor confidence that entails. Fast-tracking is in vogue for regulators. Ofgem did it, for RIIO, and only Western Power Distribution among the distribution compa- nies won out. This has le the other networks restless, particularly because Ofgem is perceived to have moved the goalposts part- way through the process. Perhaps for the regulators, it's a case of "divide and rule". In future price reviews, as the regulatory process continues to evolve, a bespoke approach tailored to each individual company might be a more sophisticated solution. Ellen Bennett, Editor ellen.bennett@fav-house.com GaS 13 | Political Agenda Mathew Beech 20 | Market view It's time to look again at gas WaTEr 6 | Chief executive view Mark Powles, Business Stream 7 | Expert view Karma Ockenden 8 | Interview richard Bienfait, chief executive, Affinity Water 15 | Analysis Two fast-tracked for Pr14 ELEcTrIcITY 13 | News Ofgem to investigate slow storm response 16 | Market view The UK is not alone on emissions 22 | High viz Dong Energy 24 | Analysis ENW's training initiatives 26 | Market view renewables and rural communities ENErGY 14 | Market view The burden of EMR on energy suppliers 21 | Market view The Budget and the carbon floor price 21 | Analyst view Martin Brough 25 | Expert view hP's Jean crisp 28 | Market view Smart meters and small suppliers 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