Utility Week

UTILITY Week 26th September

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UTILITY WEEK | 26Th sEpTEmbEr - 2nd ocTobEr 2014 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | People & Opinion 8 | Interview neil robertson, chief executive, Energy & Utility skills 12 Policy & Regulation 12 | News Labour unveils its five steps to efficiency 13 | Opinion ofgem answers its critics 14 | Analysis Party conference preview 16 | Analysis Labour plugs affordability 17 | Analysis 'Simplified' tariffs still complex 18 | Market view new arbitration rules for international court 19 Finance & Investment 19 | News commissioner backs hinkley point case 21 | Market view The UK loses its green lustre 23 | Market view Energy policy waits on politics 24 Operations & Assets 24 | High viz borkum West II 25 | Pipe up mark Knowlton 26 Customers 26 | News Labour pledges social tariffs across water 28 | Market view Changing outage experience 29 | Market view Social media tips 30 Community 30 | Reader of the week Pip Fox, market development manager for utilities, microsoft 31 | Disconnector Getting to grips with the new reality At last year's Labour party conference, Ed Miliband fired the starting gun for the 2015 election, putting the affordability of energy front and centre of national debate. It was a game changer for utilities – networks and water companies as well as energy suppliers. The suppliers saw the most obvious and immediate results, with their vilification in the national press reaching unprecedented pro- portions. An undignified scramble for the political high ground fol- lowed, as the government botched together a £50 cut in household energy bills, paid for by watering down energy efficiency and social obligations, or "green crap" as they became known. The inevitable upshot was the announcement this summer of a full inquiry into the sector by the Competition and Markets Authority – a move wel- comed by the sector as a chance to finally end the game of claim and counterclaim with some cold, hard facts. Indeed, Ofgem chair David Gray admits on page 13 this week that it should have ordered the intervention earlier – though he defends the regulator from charges of having inadvertently created many of the market's failures. All this is against the backdrop of investors seriously spooked by the prospect of a price freeze, with billions wiped off the share prices of the UK-domiciled members of the big six, Centrica and SSE, alone. For energy networks, the effects have been more insidious. While they are outside the remit of the CMA inquiry (despite the best efforts of some of the suppliers), their costs are now under more public scru- tiny that ever before, with a select committee inquiry underway. Moreo- ver, the public makes little distinction between energy suppliers and networks, and its antipathy for the former surely spilled over into its angry reaction to the handling of the Christmas storms. Networks, once the backroom boy of the energy sector, are having to adapt quickly to the spotlight and learn new ways and means of communication. The effect on water companies has been more subtle. Where Ofgem can be said to have failed, Ofwat succeeded in reading the political and public mood and started the crackdown on costs before being forced to do so. The water companies have largely under- stood the need for this approach, and nearly all voluntarily passed up their full allowed price increases this year. Labour this week signalled an intention to go further, with mandatory social tariffs! Miliband's moment marked a sea change in how utilities relate to politicians, the public and the media. One year on, as Labour moves its focus to energy efficiency and low-carbon generation, the sector is beginning to get to grips with the new reality. Ellen Bennett, Editor ellen.bennett@fav-house.com GAs 18 | Market view new arbitration rules 19 | Stock watch SSE and Infinis WATEr 26 | News Labour pledges social tariffs across water ELEcTrIcITY 6 | Executive's view brent cheshire, country chairman, dong Energy 16 | Market view Labour plugs affordability 19 | Analysis commissioner backs hinkley point case 21 | Market view The UK loses its green lustre 28 | Market view changing outage experience 28 | High viz borkum West II EnErGY 8 | Interview neil robertson, chief executive, Energy & Utility skills 12 | News Labour unveils its five steps to efficiency 13 | Opinion ofgem answers its critics 14 | Analysis party conference preview 17 | Analysis 'Simplified' tariffs still complex 23 | Analysis Energy policy waits on politics 28 | Analysis changing outage experience Knowledge worth keeping Visit the Downloads section of Utility Week's website http://www.utilityweek.co.uk/ downloads Diligent: British Gas gives board portal a warm reception http://bit.ly/1sAvsnw Rolta: White Paper: Pull yourself together http://bit.ly/1qPuBgR

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