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UTILITY Week 1st April 2016

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UTILITY WEEK | 1ST - 7TH APRIL 2016 | 3 Leader Ellen Bennett This week 4 | Seven days 6 | The Topic A special report examining skills shortages and training in the utilities sector 13 Policy & Regulation 13 | News Supplier slams early capacity market plan 14 | Analysis Ofgem has its work cut out following the edicts of the CMA 17 Finance & Investment 17 | News Operating profits set to fall, warns UU 19 | Analysis The prospects for small modular nuclear technology 20 | Event Wipro and Utility Week Innovation and Technology Council annual dinner 22 Operations & Assets 22 | High viz The Shetland Tidal Array 23 | Expert view RS Components 24 | Event The Future Networks conference 26 Customers 26 | News Age UK questions the CMA's remedies 27 | Comment The CMA's flawed analysis 28 Markets & Trading 28 | Analysis Water market opening is one year away 30 Community 31 | Disconnector One year out, signs are good for water market opening "The opening of the retail market represents the largest single change in the water sector since its privatisation in 1989." So says Alan Sutherland (p29), chief executive of Wics and the driving force behind much of the nascent market's early preparation. He should know. Sutherland was on hand for the market open- ing's messy birth, when the legal, regulatory and management structure of the Open Water programme, which ran the opening, was overhauled twice in less than a year. First, the Treasury stymied Ofwat's Plan A by refusing to classify its arm's-length organisation, Open Water, as a private body. Then, Plan B went the same way when Sutherland and Wics' leadership of the programme as an official delivery partner was vetoed by the Wics board amid concerns of the division of responsibilities with Ofwat. Plan C, however, seems to be working out very nicely. The deci- sion by several of the companies to set up their own private body, Market Operator Services Limited (MOSL), proved to be a lifesaver. While there are still significant concerns around data quality and other operational issues, go-ahead companies are already getting their strategic plays in place, with deals such as Severn Trent and United Utilities' joint venture likely to prove game-changers. Exactly one year ahead of market opening, the signs are good. Chances are the market will open on time, even if there remains some work to be done on 2 April. The sector is to be praised for its mature and level-headed approach to regulatory setbacks created by red tape, and despite the initial problems it can boast of a collabora- tive and proactive approach to meeting a challenge set by govern- ment. Of course, with domestic marketing opening now looming on the near horizon, the bigger challenge is yet to come. • Analyst Nigel Hawkins challenges the CMA's claim that energy companies are overcharging customers by £1.7 billion on page 27 of this week's issue, claiming it is "predicated on [a] flawed analytical base". The CMA declined Utility Week's offer to respond to Hawkins' comments, but it is incumbent on this public body to defend, explain or withdraw a number so damaging to the industry's reputa- tion, which it has proclaimed so loudly and with such confidence. Ellen Bennett, Editor ellen.bennett@fav-house.com GAS 13 | News Rudd and SSE warn over Brexit 17 | Stock watch Good Energy WATER 17 | News Operating profits set to fall, warns UU 23 | Expert view RS Components 26 | News Thames more than doubles Scots share 28 | Analysis Water market opening is one year away ELECTRICITY 13 | News Supplier slams early capacity market plan 19 | Analysis The prospects for small modular nuclear technology 22 | High viz The Shetland Tidal Array ENERGY 14 | Analysis Ofgem has its work cut out following the edicts of the CMA 20 | Event Wipro and Utility Week Innovation and Technology Council annual dinner 24 | Event Future Networks conference 26 | News Age UK questions the CMA's remedies 27 | Comment The CMA's flawed analysis Knowledge worth Keeping Visit the DownloaDs section of Utility week's website http://www.utilityweek.co.uk/ downloads Wipro: Digitisation and the Internet of Things http://bit.ly/1LbI3Jt Achilles: How can utility suppliers get noticed by big industry buyers? http://bit.ly/1KaByWW

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