Utility Week

Utility Week 5th June 2015

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UTILITY WEEK | 5TH - 11TH JUNE 2015 | 23 Finance & Investment Three things that have to change Five key points to take away 1. The regulator must be careful not to stifle innovation 2. A system architect is needed to encourage collaboration between the distribution and transmission companies 3. The gap between suppliers and networks must be bridged 4. The networks must leap into the foreground and build a new relationship with customers 5. Use new technologies such as apps to appeal to consumers and give them a sense of ownership Simon Harrison group strategic development manager, Mott MacDonald Speaker insights • A regulatory environment for networks, and perhaps also for power markets, that is focused around rewarding capacity and system services rather than energy transportation. • A mature conversation about how innovation can be facilitated in supply, and indeed in networks, within a context of physical constraints on network asset systems. In other words, finding this balance to allow innovation to flourish, whilst also allowing cost effective network solutions. • The idea of re-thinking what network utilities need to be so that they can become the catalysts of change in this environment and make money from doing that, rather than risk becoming stranded in a cost- reducing downwards spiral that leads nowhere. "Distribu- tion busi- nesses are making a lot of investment in the US. But in some mar- kets that have com- petitive retail electric- ity supply, it's proving challenging to deliver both the full value of those investments across enhanced utility operations and customer enablement for increasing pen- etration of distributed energy resources." David Shepheard managing director, North America Resources operating group, Accenture "We're two years into RIIO and my view is that the innovation mech- anisms that have been put in place have provided some good stimulus. In some cases there are things we would probably have done anyway, but in other places I think we are doing things and looking at things that we would not otherwise have done had not those mechanisms been in place. Which I think is a positive tick for the RIIO framework." Stephen Parker regulation director, Northern Gas Networks "We need to be clear on what we would like to do and we also need to find the right money or the right incentives to support innovation." Remy Garaude-Verdier smart grids project manager, Electricite Reseau Distribution France (ERDF) Brought to you in association with

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