Utility Week

UTILITY Week 8th January 2016

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

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UTILITY WEEK | 8TH - 14TH JANUARY 2016 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | People & Opinion 8 | Interview David Rutherford, chief executive, Power Networks Demonstration Centre 12 | Review The highs and lows of 2015 18 Policy & Regulation 18 | News Swingeing cuts to FIT lighter than feared 19 | Market view Ofwat's five pillars of reform for the water market 21 Finance & Investment 21 | News Sludge 'riskier than water' in new market 22 | Market view Utility merger and acquisition activity during 2015 23 | Market view Does U-turn on CCS damage investor confidence irreparably? 24 Operations & Assets 24 | High viz The Satsop nuclear plant, Washington, US 25 | Pipe up Simon Harrison, Mott MacDonald 26 Customers 26 | News CCWater challenges firms to cut leakage 27 | Market view Utilities pull together to battle storms 28 | Market view Making disruptive business models work for you 29 | Market view Being single-minded in dealing with customer debt 30 Community 31 | Disconnector The utility to-do list for the year ahead Welcome to January, the month of new beginnings and New Year's resolutions. If last year was dominated by politics, policy and new regulatory settlements (see p12), this year can fairly be called the year of the deadline. With the smart meter rollout due to start in earnest and the shadow opening of the water market set for the end of the year, the heat is on. To get the year off to a good start, we suggest some resolutions for those in the sector, and those in government: 1. Energy retailers of all sizes, get proactive in the smart meter rollout. While some of the larger players have been leading the way, other companies are still installing legacy meters. Indeed, the number of legacy installations each month far outstrips that of smart meters, meaning a huge amount of waste when the rollout begins and they must all be replaced. 2. Just as important, the government must resolve to meet the deadlines for its part of the programme, get the Data Communications Company live by August and finally sign off the SMETS-2 specifications. This will give the retailers the certainty they need to fulfil their part of the bargain. 3. As National Grid attempts to resolve the thorny issues facing the power system, the whole universe of energy networks, transmission and distribution, plus government and other stakeholders, should give serious consideration to finding a longer-term solution for the seismic changes to power generation and consumption, whether this is a system architect or another model. 4. It's fair to say that most water companies are already resolved to get the market open on time, with the shadow opening of the non- domestic market set for this autumn. Their best resolution would be to get their data in good shape for doing so – while the government would be well advised to make an early decision on whether to go ahead as scheduled with the full opening in April 2017. 5. The devastating floods over the festive period have shown us two things. One, that utilities workers continue to give their all, no matter what the personal cost, in times of crisis. And two, that predictable, clement weather is a thing of the past. The entire sector must resolve to work hand-in-glove with local and national government to ensure that infrastructure is designed and built to withstand extreme weather and mitigate as far as possible the kind of misery experienced this Christmas and New Year. Ellen Bennett, Editor ellen.bennett@fav-house.com GAS 22 | Market view European gas market affects 2015 M&A activity WATER 18 | News Market closed to firms with poor data 19 | Market view Ofwat's Water 2020 consultation 21 | News Welsh Water changes will not affect ratings 26 | News UU wins supply deal for Tesco in Scotland 27 | Analysis What is the role of water firms in the face of more frequent storms? ELECTRICITY 21 | News Tempus raises £3.8m for smart supply 23 | Market view The true cost of pulling the rug out from under CCS 24 | High viz Satsop nuclear plant, Washington, US ENERGY 18 | News Billing woes cost Npower £26m 21 | News GIB's green identity must be protected 26 | News CMA wants action on prepayment meters 28 | Market view Disruptive business models Knowledge worth Keeping Visit the DownloaDs section of Utility week's website http://www.utilityweek.co.uk/ downloads Fujitsu: Digital Inside Out Transforming Utilities. http://bit.ly/1V2xiKb Cognizant: Transforming the Customer Experience for UK Utilities. http://bit.ly/1Pim1TK

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