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UTILITY Week 10th October 2014

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14 | 10th - 16th OctOber 2014 | UtILItY WeeK Policy & Regulation Liberal Democrat party conference Stuck in the middle with Nick The Lib Dems met in Glasgow this week striving to cast themselves as the only true centre ground party, says Mathew Beech. The key questions: F or the Liberal Democrats, their party conference in Glasgow was very much about trying to re-establish, even redis- cover, their identity. Away from the persistent whispers about who could replace Nick Clegg (Ed Davey, Danny Alexander and Norman Lamb are the names doing the rounds), the Lib Dems are trying to appeal to their core voters and prove they are the same party the electorate voted for back in 2010, not the one tainted by a toxic association with David Cameron's Conservatives. This becomes even more signif- icant when viewed in the light of Lord Ashcro's latest poll showing the Lib Dems tied for fourth place with the Green Party on 7 per cent of the vote. Energy secretary Ed Davey was one of the leading Lib Dems shout- ing about his party's achieve- ments in government – the top phrase in Glasgow. He claims he and the Lib Dems are behind the "radical" transformation of the energy sector, which has seen the big six's stranglehold on the mar- ket collapse from 98 per cent to 92 per cent. The Lib Dems are keen to take ownership of the positives that have been coming out of the Department of Energy and Climate Change over the past four years. It is their department; these are their policies; and they are doing every thing they can to let every- one know it. The lesson, with only seven months to go until the general election, has been learnt that they have to push their record of deliv- ery on the doorsteps. They have to remind people that the government is a coalition fea- turing the Conservatives and the Lib Dems. The Lib Dems are keen to highlight their green record (the amount of renewables has doubled since 2010), but Davey is also up for the affordability fight with Labour, and has gone toe-to-toe with Labour shadow Caroline Flint on the energy efficiency agenda. Energy efficiency was Labour's energy highlight this year. Five million homes over ten years will have their energy efficiency improved, was the pledge from Labour. Davey promised that the short-lived Green Deal Home Improvement Fund would be jolted back into life with £100 million of new fund- ing. With the promise of insu- lation and easier switching, coupled with a five-point plan that includes council tax breaks for energy efficient homes, it is clear that the Lib Dems are tackling Labour head on. The likelihood of a Lib-Lab coalition aer May is diminish- ing, as the Lib Dems realise it would cast them as the nasty party – pushing for further spending cuts and reining in Labour's spending. It's not something the party faithful would welcome. The point of the conference has been to spread distrust of the Tories and Labour, while tackling the Greens by estab- lishing their own environmen- tal credentials. It has been a shiing to the middle ground vacated by the other major par- ties because of Ukip. The whole event has been a love letter from the party. They are pleading that they are still the same party voters fell in love with in 2010, and that they have laid back and thought of England when bunking up with the Tories. If successful, the Lib Dems will be back in government limiting Labour's instinctive desire to spend, spend, spend, or reining in the Conservatives' cuts, cuts, cuts. If the wooing fails to entice the voters back, there is always the possibility – whis- per it – that Davey could get the top (Lib Dem) job. Overheard at the conference "It's like being stuck in a big Lib Dem prison – you can't find your way out." An exhibitor on the maze-like nature of the conference venue "What a dreary announcement from Ed Davey. They're not exactly serving up gems are they?" Overheard in the press room "I can reassure you I've seen no firm evidence that it was my appointment in October that led to the extreme weather events that we saw over the winter, no matter how I voted on equal marriage." Dan Rogerson on his appointment as water minister Our roving political correspondent Mathew Beech covered all three main party conferences and put the same important questions to senior politicians at each. What is the future for Ofgem? I do understand the frustrations that people have had with Ofgem. What we have done is take through additional powers so that Ofgem has had its role beefed up and we now also have the investigation into the energy market, which is going to be very welcome and the CMA has got significant power that make it far from toothless. There is cause for optimism on the horizon for energy. Jo Swinson, consumer affairs minister What is the most important part of the energy trilemma (affordability, sustain- ability, security)? "I don't agree with the Conservatives and Labour that there is this trade-off between going green and affordability. If you want to cut your energy bills permanently, the best way is energy efficiency. "That can cut your bills permanently and your carbon emissions. So you can go green and have permanently lower bills. It's really depressing that the Conservatives and the Labour party haven't understood that." Ed Davey, energy secretary Are the water companies treating customers fairly? "Fairness is in the eye of the beholder. "Going in to the next [price review] period, we will have a process that is more open and allows people to understand how the companies operate. Companies under- stand the needs of their customers and how to offer a great customer service. They've moved on a great deal [since privatisation]. "In terms of price, we will see something that much more reflects the costs that com- panies have, and the fact that prices will not see a huge increase is really positive." Dan Rogerson, water minister Ofgem: Thumbs up The reinforced regulator plays a central role in the Lib Dems' plan to promote competition in the energy market.

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