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UTILITY Week 3rd October 2014

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UtILItY WeeK | 3rd - 9th OctOber 2014 | 13 Policy & Regulation Conservative party conference Utilities not on the agenda Labour can huff and puff about high energy and water bills, for the Conservatives it's all about the deficit. Mathew Beech reports. The key questions: L ast week, Labour unveiled its five-point plan to boost the energy efficiency of five million homes across the UK. It was a key message that was quickly drowned out by the cacophony of criticism of party leader Ed Miliband for forgetting to mention the deficit in his keynote speech. One week later, the Conserva- tives face having their conference overshadowed as well – this time by Ukip defector Mark Reckless – and the ongoing concern that any- one could be next to jump ship. But at least the Conservatives don't have to worry that a Farage furore may overshadow any new energy policy announcement – there wasn't one. Those in Tory blue say there is no need – they are keeping to the course of energy policy that has been set over the past four years. The party line is that invest- ment in energy infrastructure is up under the Conservative-led government, and the UK's energy supply is secure – especially with vast shale gas reserves beneath out feet. The rather meek response to Miliband's populist price freeze for the "hard-working people" of Britain is a promise that changing energy supplier will help cut bills by up to £200. Amber Rudd, the new parlia- mentary undersecretary for climate change, went as far as to say the government is already treating energy efficiency as an infrastruc- ture priority, with homes benefiting from the Green Deal and the Energy Company Obliga- tion and help in tackling the affordability issue. Rudd and energy minister Matthew Han- cock are both new to their briefs, and they are not spoiling for a fight with their political opponents. Diving in probably isn't the wis- est thing for them to do while they are still getting to grips with the sector. Liz Truss, the new environment secre- tary, didn't even make a passing reference to Labour's national affordability scheme pledge for water customers, or challenge Labour's promise to give the regulator new powers – whatever they may be. Last year, the lack of energy chat was understandable – the Tories were still reel- ing from Labour's price freeze pledge. This year, the dearth of energy policies – or indeed any discussions about utilities in general – is a by-product of the party's focus on unification. This has been a conference where the uncertainties of the party – pulled front and cen- tre by the headline-stealing exploits of Ukip – have had to be dealt with. The core Con- servative audience has been appeased with promises of tax cuts and the traditional shouts of being the party of business. The obvious disquiet sur- rounding energy (renew- able energy – and in particular onshore wind – is a subject to raise the ire of the party's rank and file) has been pushed to the background. The less said on energy, the better. If nothing is said, there can be no flare-ups from dis- gruntled councillors, or heckles from the floor. The disjoint between what the top brass know needs to be achieved and what other parts of the party want – more coal, shale gas, no onshore wind, farmland for agriculture not solar panels – has been hidden. Plastered over the top is a feel-good, tub-thumping veneer of Britishness, a call to arms for the businessmen and women of the UK, a cry that the Tories will secure the future of a united UK. Energy, once again it would seem, has been pushed into a dark corner – out of sight and out of mind. Overheard at the conference "…boys will be boys and enjoy building great big wind turbines, or opening nuclear power stations, and very oen demand-side is an aerthought." Peter Aldous MP  "Whenever I see those Iraqi nuclear experts in white coats, I can't help but think we trained them here in the UK." David Willetts MP  "The Green Party is actually the most damaging party for the environment. "They put through policies that are ridiculous and talk out against things like nuclear." An astrophysics graduate at a Praseg fringe event Our roving political correspondent Mathew Beech will be covering all three main party conferences and putting the same important questions to senior politicians at each. What is the future for Ofgem? "Ofgem is an independent body. It is doing a really important piece of work for us all. We are leaning on them for various initiatives which they have been delivering on so there is no prospect of that [scrapping Ofgem] at all." Amber Rudd, parliamentary undersecretary of state for climate change What is the most important part of the energy trilemma (affordability, sustain- ability, security)? "I'm driven by what I think the consumer wants and what I think is going to be their priorities. So when I think about the con- sumer obviously they need to have the lights on, but we also need to have costs that are affordable otherwise they can't switch them on. But all three are essential." Amber Rudd, parliamentary undersecretary of state for climate change Are the water companies treating customers fairly? "Yes, and we will see what happens when we get to December [and the PR14 final determinations]. "Under the price review, if they aren't seen to be engaging and consulting with customers, they will be hammered. "I think the big game-changer this time is that water companies will be rewarded for introducing innovation. I think that could revolutionise both customer satisfaction, customer return and the delivery of services for customers." Anne McIntosh, chair, Efra committee Ofgem: Thumbs up Competition is key for the Conservatives – and they want Ofgem to oversee the growth of smaller suppliers in the energy retail market.

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