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UTILITY WEEK | 27TH NOVEMBER - 3RD DECEMBER 2015 | 3 Leader Jane Gray This week 4 | Seven days 6 Policy & Regulation 6 | News MPs question Grid after Calon windfall 6 | Political Agenda The week in politics with Jillian Ambrose 7 | Analysis Is it reset or rehash from the energy secretary? 10 | Analysis The water sector wants to innovate but is reluctant to embrace change 15 Finance & Investment 15 | News SSE tipped to take up Grid's GDN assets 15 | Stockwatch Drax shares tumble as deathknell is sounded for coal 17 Customers 17 | News Smart meters at risk from energy theft 17 | I am the customer Jeremy Nicholson, EIUG 18 | Analysis Water companies and flood prevention 20 Operations & Assets 20 | High viz Ashtead Technology 21 | Pipe up Jane Gray 22 | Analysis Two flagship LCNF projects lead the way 23 | Special focus The true cost of streetworks 28 | Analysis Utilities need to guard their territory in the connected home 30 Community 31 | Disconnector Water continuing to think inside the box Ofwat chief executive Cathryn Ross recently congratulated water companies on their progress in adapting to the introduction of totex accounting, saying they showed signs of using the new approach to "think outside the box" – to innovate and move away from tradi- tional approaches to operations. But these positive words stand in harsh contrast to the findings of recent research conducted by Utility Week and Arcadis, which is summarised on pages 10-13. This study, titled Water Sector Innovation and Perceptions of Totex, canvassed operations and asset management leaders in the water sector. The results show that far from being seen as an enabler for outside the box thinking, totex is not remotely linked to the sec- tor's innovation challenges in the minds of respondents. Overall, the report shows disappointing evidence that while opera- tions leaders in the water sector acknowledge they need to innovate to meet new outcome delivery incentives and focus on customer experience, they are reluctant to accept or effect the troublesome changes to "the way things are done around here" that this entails. Industry commentators who reviewed the research findings generally expressed a weary lack of surprise at the results, saying they reflected their experience of working with water companies. A senior spokes- person in the energy networks industry expressed horror at the report finding that 43 per cent of respondents categorically said totex will make no difference to the way in which they innovate, saying it has been an integral part of recent innovation work in that sector. In the face of mounting challenges to become more efficient, resilient and competitive and, above all, to show that the water sector is delivering optimum value to customers, the findings of this report are cause for concern. They imply that the motivation behind the shi to totex – despite clear statements of intent from Ross during PR14 – has fundamentally been missed by a significant proportion of those responsible for the day-to-day running of water services. This can only lead to lost opportunities for increasing efficiency and performance. If, as Ross says, water companies have indeed made strides in embracing totex, it would seem they also still have a long way to go. • Time is running out to book your place at the event of the year – the Utility Week Awards, held at the Grosvenor House Hotel, Park Lane, London, on Monday 14 December. Only a few tables remain, so book now at www.utilityweekawards.co.uk. Jane Gray, Assistant editor jane.gray@fav-house.com GAS 15 | News SSE tipped to take up Grid's GDN assets 20 | High viz Ashtead Technology 23 | Special focus The true cost of streetworks WATER 10 | Analysis The water sector wants to innovate but is reluctant to embrace change 18 | Analysis Water companies and flood prevention ELECTRICITY 6 | News MPs question Grid after Calon windfall 15 | Stockwatch Drax shares tumble as death knell is sounded for coal 22 | Analysis Two flagship LCNF projects lead the way ENERGY 6 | Political Agenda The week in politics with Jillian Ambrose 7 | Analysis Is it reset or rehash from the energy secretary? 17 | News Smart meters at risk from energy theft 17 | I am the customer Jeremy Nicholson, EIUG Ciena: Utility to utelco: the telecommunications opportunity. http://bit.ly/1NTZVsX Knowledge worth Keeping Visit the DownloaDs section of Utility week's website http://www.utilityweek.co.uk/ downloads opower: Eon UK rebuilt trust with cus- tomer engagement and digital transformation. http://bit.ly/1M8xxd3