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Utility Week 1st May

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14 | 1ST - 7TH MAY 2015 | UTILITY WEEK E L E CT I O N C O U N TD O W N : 6 D AY S TO G O "We've come this far – let's see it through to even brighter days." David Cameron (Conservative) "I will lead a government that seeks to solve the challenges of our time." Ed Miliband (Labour) "The Liberal Democrats will add a heart to a Conservative government and we will add a brain to a Labour one." Nick Clegg (Lib Dems) "For the first time in 100 years, there is real change on the horizon. All you have to do is vote for it." Nigel Farage (Ukip) "Austerity has failed and we need a peaceful political revolution to get rid of it." Natalie Bennett (Greens) "We will seek to make common cause and build alliances to deliver the progressive change we want." Nicola Sturgeon (SNP) The leaders speak Summary W ith the fuse lit on the last days of this volatile election campaign, each of the parties will be doing their upmost to woo floating voters. Despite their efforts, it remains unlikely that a single party will get a majority. This means the role of the smaller and regional parties is now significant – and not only to the main parties' leaders as they plot a way to get over the magic 326 mark. The policies of the smaller parties now carry weight, since they could play a big role in developing future legislation in the politi- cal game of give and take. The SNP would back Labour's plans to force Ofgem to make suppliers cut energy bills; the Conservatives and the Lib Dems agree that competition is the best way to drive fairer energy prices; while Labour and the Lib Dems have common ground on establishing a national social water tariff. The overlap between parties is compre- hensive and complex – and something the smaller parties are relishing. Whatever the new government's colour and make up, there are some key areas it will look to act on. Helping "hard working people" with their utility bills will always be a popular policy. The choice comes down to whether this should be achieved by market forces or government intervention. This will run alongside the social policies the utilities and government offer customers, however they are funded and operated. Resilience and sustainability make up the other elements of the trilemma in energy, and apply to water as well. The next govern- ment will have to guide the industry down a precarious path that secures resources with- out any nasty stumbles along the way. This will largely rely on the investment the sectors attract, and how they are allowed to use the cash. The next government will want to avoid the mixed messages that have blighted the coalition – and allow the plan- ning system to function without constantly calling in and rejecting projects. A clear framework is vital. A clear framework is also vital for com- panies' financial arrangements – namely for their tax affairs. Tax, and ensuring "everyone pays their way", will continue be important, especially for the next chancellor's attempts to balance the books. Making the so-called Google-tax work would help. Borrowing a phrase from Ofwat, the out- comes to be delivered are clear. What is not clear is how they will be reached, and the impact this will have. Known unknowns With the polls deadlocked, a hung parliament looks inevitable – which could cede power to the small parties, says Mathew Beech. UTILITY WEEK LOBBY POLL TRACKER 26 Apr 2015 – YouGov poll Party Share Change (from 19 Apr) Conservatives 33% -1 Labour 34% +1 Lib Dems 8% 0 Ukip 14% +1 Green 5% 0 Other 4% -1 Utility Week Lobby has covered the follow- ing themes in the run-up to the election. • Resilience and sustainability • Ownership and tax • Infrastructure and planning • Investment • Social policies and affordability • Regulation and competition After the election and looking toward party conference season, Utility Week Lobby, in partnership with the Energy Networks Association, will dig deeper on these themes, exploring the policy agenda for the incoming government. UtilityWeekLobby VOTING INTENTIONS ( THREE MONTHS) Con Lab Lib Dems Ukip Green 40% 30% 20% 10% 0% 23 Jan 23 Feb 23 Mar 23 Apr 6 8 13 33 35

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