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UTILITY WEEK | 24TH - 30TH APRIL 2015 | 3 Leader Ellen Bennett This week 4 | Seven days 8 | Interview Andrew Whalley, chief executive, Renewable Energy Generation 11 Policy & Regulation 11 | News SNP backs Labour's energy price freeze 12 | Utility Week Lobby In-depth political coverage examining the party manifestos 16 Finance & Investment 16 | News Ovo moots stake sale to private equity firm 17 | Analysis Pennon blazes an M&A trail with acquisition of Bournemouth Water 18 Operations & Assets 18 | Sponsored report WNS Global Services examines the boom in offshoring 22 | Game changer Ice pigging is establishing itself as a leading pipe-cleaning technology 25 Customers 25 | News Supplier funds target vulnerable customers 27 | Market view Is the smart meter rollout's focus on in-home displays warranted? 29 Markets & Trading 29 | Market view Market risks rising for green investors 30 Community 30 | Reader of the week Andrew Beasley, Flow Energy 31 | Disconnector Water sector under starter's orders Congratulations to South West Water. Its parent company, Pen- non, this week pulled off the acquisition of Bournemouth Water in a deal that fires the starting pistol on the long-awaited M&A in the water sector. For Pennon/South West, it's a sweet deal. Bournemouth is rec- ognised as a leading municipal water company with a strong local brand and a book of non-household business that complements South West's mainly SME customer base at a pivotal moment in the run-up to market opening. The deal signals South West's intent to be a serious player in the non-household market, and suggests that the big boys such as Thames and Anglian won't have it all their way. South West Water will be looking to capitalise on the Bourne- mouth brand, and that at least is likely to survive the deal. Once the acquisition has passed the CMA – a hurdle that could take up to six months to clear – Pennon will have some tough choices to make about how it maximises the potential for efficiencies from the takeover. More deals will follow as the water sector reshapes itself ahead of market opening, and in recognition of the tough new approach to risk and reward under AMP6. Some investors, like Bournemouth's previous owner Sembcorp, will retreat while others, like Pennon, will advance. In some cases, a split between investors focused on the traditional, asset-based, regulated wholesale business and those willing to chance their arm in the retail market will emerge, and this may drive less traditional takeovers. As Ofwat chairman Jonson Cox said earlier this year, who says an acquisition has to be a simple case of a big company swallowing a smaller one whole? There is one deal that the market awaits with particular eager- ness. The first acquisition of a book of non-household businesses will signal the development of a market for customers, and give an indication of price. For those companies looking to exit the non- household retail market, that will be a crucial moment. Ofwat is expected to publish a consultation this spring on exit and licensing arrangements that should bring such a deal a step closer. Ellen Bennett, Editor ellen.bennett@fav-house.com GAS 16 | Gas Switching more than doubles in March WATER 12 | Utility Week Lobby In-depth political coverage examining the party manifestos 17 | Analysis Pennon blazes an M&A trail with acquisition of Bournemouth Water 22 | Game changer Ice pigging is establishing itself as a leading pipe-cleaning technology ELECTRICITY 6 | Interview Andrew Whalley, chief executive, Renewable Energy Generation 29 | News Market risks rising for green investors ENERGY 11 | News SNP backs Labour's energy price freeze 16 | News Ovo moots stake sale to private equity firm 18 | Sponsored report WNS Global Services examines the boom in offshoring 25 | News Supplier funds target vulnerable customers 27 | Market view Is the smart meter focus on IHDs warranted? Knowledge worth keeping Visit the Downloads section of Utility Week's website http://www.utilityweek.co.uk/ downloads Salesforce: How the cloud can help meet business objectives http://bit.ly/1EFZjlj Vodafone: Machine- to-Machine (M2M) Utilities Insights http://bit.ly/1BDpCGZ