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UTILITY WEEK | 17Th - 23rd OcTObEr 2014 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | People & Opinion 8 | Research Utility Week and TcS look at rIIO and network transformation 13 Policy & Regulation 13 | News clegg: 'ban unabated coal' 14 | Political agenda Party conference roundup 17 Finance & Investment 17 | News Energy company profits fall 20% 18 | Analysis Why Affinity Water is set up nicely for the future 20 Operations & Assets 20 | High viz Airlight Energy's Foto dish 21 | Pipe up dominic Thasarathare 22 | Market view Field workers and Google Glass 23 | Market view Industrial applications will drive smart wearables 25 Customers 25 | News decc cuts Eco target despite opposition 27 | Market view Smart metering needs the right messaging 28 Markets & Trading 28 | Market view xxx 29 | Market view Water trading is easier said than done 30 Community 30 | Reader of the week david Gascoigne, KPMG 31 | Disconnector For Ofgem, it's a matter of principle And so to this week's Utility Week Congress in Birmingham, where the future role of regulation is at the centre of debate. The conversa- tion begins with Ofwat chief executive Cathryn Ross reflecting on the experience of PR14, now drawing to a close, which has overtly sought to remove the regulator from the dialogue between water company and customer. Ofwat has instead required companies to develop the best business plan they can, in consultation with their customers, and then put that forward to the regulator. While this ap- proach has suited some companies more than others, it has certainly brought about a culture shi across the sector. Now Ofgem is seeking a similar shi in its fraught regulation of energy suppliers. The energy regulator's chief executive, Dermot Nolan, told delegates that Ofgem wanted to see a move over the next couple of years from prescriptive, intrusive regulation to a principles-based approach, centred on the principle of treating customers fairly. This may or may not be a response to the criticism that has been aired in the early stages of the Competition and Markets Authority (CMA) inquiry, to the effect that Ofgem's market interventions have themselves had negative consequences for consumers. It certainly learns from financial services, where the Treating Customers Fairly regime is well established, and is a world away from such interven- tions as the Retail Market Review, and detailed regulation governing the layout of an energy bill. While there are necessarily significant differences in the regula- tion of monopoly and competitive sectors, the trend is the same. Both Ofwat and Ofgem are seeking to end prescriptive regulation, encourage companies to think deeply about what is in the best inter- ests of their customers and take a mature and responsible approach to delivering that. In energy, the CMA inquiry would presumably set down some guidelines and recommend any necessary structural changes to the market. It's hard to argue with the direction of travel. Principles-based regulation is a sensible approach that encourages competitive and customer-centric behaviour. It can also create uncertainty and confusion among businesses more used to ticking regulatory boxes. As congress chairman and CMA member professor Jon Stern pointed out, the regulatory regime must find a balance between predictabil- ity and flexibility. This will be the work of Ofwat and, perhaps more challengingly, of Ofgem over the months and years ahead. Ellen Bennett, Editor ellen.bennett@fav-house.com GAS 21 | Pipe up dominic Thasarathare WATEr 17 | Stock watch Water sector stable 18 | Analysis Why Affinity Water is set up nicely for the future 19 | News campaign to prevent sewer blockages 29 | Market view Water trading is easier said than done ELEcTrIcITY 13 | News clegg pledges to ban unabated coal 20 | High Viz Airlight Energy's Foto dish 22 | Market view Field workers and Google Glass 28 | News Nuclear restarts on schedule, say reports ENErGY 8 | Research rIIO and network transformation 17 | News Energy company profits fall by 20% 23 | Market view Industrial applications will drive smart wearables 25 | News decc cuts Eco target despite opposition 27 | Market view Smart metering needs the right messaging 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