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UTILITY WEEK | 26TH JUNE - 2ND JULY 2015 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | Interview Keith Anderson, chief executive, Scottish Power Renewables 9 Policy & Regulation 9 | News Water licences readied for market opening 10 | Utility Week Lobby Select committees take shape 12 | Event Leader's Briefing: Totex 14 | Analysis Onshore wind subsidies slashed 17 Finance & Investment 17 | News Borealis makes bid to enter UK water sector 18 | Market view UK green attractiveness 19 | Analysis National Grid reassesses its assets 20 Operations & Assets 20 | High viz Eon closes Killingholme 22 | Market view Play it safe with cyber security 23 Customers 23 | News Customers will foot bill for grid upgrade 25 | Market view Disability blind spot 26 Markets & Trading 26 | News Bills still high despite record low gas prices 28 Community 28 | Market view UW Stars full review 30 | Reader of the week Peter Kocen, UKPN 31 | Disconnector Still a political football "It ain't broke, so don't fix it." That's the broad thrust of the evidence the major energy companies gave to the Competition and Markets Authority (CMA), according to the hearing summaries published this week. While the evidence varied in detail, most companies agreed on the major points: there is no abuse of power in the wholesale market; energy companies are making a reasonable return, not profiteering; and retail market reform (RMR) and other regulatory interventions have distorted the market and stifled innovation. Chances are the CMA will agree with them. The noises com- ing out of the body have been conciliatory and investors, usually adept readers of the wind, are already relaxing as the prospect of a forced break-up dwindles. As we reported last week, a recent note from Citigroup said: "Market concerns for a possible break up have diminished to near zero. Of bigger interest in our opinion is any remedies imposed on the number, level and flexibility of tariffs and the discrepancies in profitability between customers that have never switched and those which have shopped around." So expect RMR to be on the table, along with consideration of standard variable tariffs and measures to protect "sticky" customers. There's just one problem: customers still don't trust energy companies, and a CMA remedy that essentially preserves the status quo isn't going to change that. So it's over to the companies to find a market solution – and indeed, some already are. Eon is setting the pace, with its early announcement of plans to split the global busi- ness in two, keeping the Eon brand for the renewables and cus- tomer-facing arm. Centrica's long-awaited strategy announcement this summer will provide its answer to the dilemma. Both companies were first movers on smart meters, suggesting they see smart tech- nology as the key to detoxifying the customer relationship. The CMA recommendations, expected shortly, may well be less drastic than originally hoped or feared. But the energy market is transforming anyway – and not just among the big six. Reports this week that National Grid's Steve Holliday will end his successful tenure next week open the door to a strategy shi, adding weight to speculation that it plans to sell its metering business, and perhaps even its gas distribution networks (see analysis, p19). Still, any hopes that, post-election and post-CMA, the energy mar- ket would lose its status as a political football were dashed this week. Amber Rudd's headline-grabbing early closure of the RO for onshore wind may have little immediate consequence because of sweeping exemptions, but it shows this government is only too willing to play energy policy to the gallery (see analysis, p14). Plus ca change. Ellen Bennett, Editor ellen.bennett@fav-house.com GAS 22 | Market view Play it safe with cyber security 25 | Market view Disability blind spot is costing utilities lost business 26 | News Bills still high despite record low gas prices WATER 10 | UW Lobby Select committees take shape 17 | News Borealis makes bid to enter UK water sector 17 | News Surplus at Scottish Water rises to £111m ELECTRICITY 6 | Interview Keith Anderson, chief executive, Scottish Power Renewables 14 | Analysis Onshore wind subsidies slashed 18 | Market view UK attractiveness for green investment 20 | High viz Eon closes Killingholme 23 | News Customers will foot bill for grid upgrade ENERGY 9 | News Water licences readied for market opening 12 | Event Leader's Briefing: Totex 9 | News Yeo: CMA 'should publish networks evidence' Knowledge worth keeping Visit the Downloads section of Utility Week's website http://www.utilityweek.co.uk/ downloads Schneider Electric: Modicon M580. It's a revolu- tion. Everytime. http://bit.ly/1FZogqK Cognizant: Using Predictive Analytics to Optimize Asset Maintenance in the Utilities Industry http://bit.ly/1cBKZP0