Utility Week

Utility Week 12 12 2014

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

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UtILItY WeeK | 12th - 18th December 2014 | 15 Policy & Regulation The delegates Tony Smith, chief executive, ccWater "Customer satisfac- tion is not actually that strong. It's not as bad as energy, but it's probably not as strong as it should be going into the future. The price review can help with that. I think it's really a good basis to try and recover that." Chris Bennett, head of UK rIIO delivery, National Grid "With totex, you are able to look at the whole cost base and deliver innovative solutions. It is a mas- sive step forward from RPI-X. There will be challenges along the way that will come along, but [the price review] is very good to drive value." Richard Bienfait, Chief executive, Affinity Water "In terms of totex, I know that many people have said this removes any capex bias, but if it's going to remove the capex bias, I think it is going to create other biases. I think it's going to encourage accelera- tion of investment at the start of the invest- ment period." Five key points: The key influence for AMP6 will be the outcome delivery incentives rather than the shift to totex. Stakeholder engagement is crucial to ensure the best value solution is implemented. There is still a lot of work to do for the sector to be ready for competition – both in terms of compa- nies' preparedness and in creating the market . The extension of five-year price control periods to match other sectors such as energy could move back on to the agenda. There will be sig- nificant changes and merger and acquisi- tion activity with the PR14 final deter- minations made, although it is unclear how the market will shape up. Cathryn Ross, chief executive, Ofwat "I think the big issue is not a new thing but the change in mindset. The change in mind- set is not only huge for retailers, who are looking to retain cus- tomers, but it is going to be a huge thing for wholesalers too." Milo Purcell, Deputy chief inspector, Drinking Water Inspectorate "In terms of delivery of AMP6, it's worth remembering we are a mature and success- ful industry. So we're Brought to you in association with not starting from a point of failure, we're starting from a point of strength. That is hugely important in terms our ability to deliver."

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