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UTILITY WEEK | 27TH MAY - 2ND JUNE 2016 | 13 S P E C I A L R E P O RT / M AY 2 0 1 6 Data is vitally important in both the energy and water sectors and, as networks and systems in the utilities sector become smarter and the needs and expectations of the customer change, its importance is rapidly growing. "Smart networks need smart data," said WRc senior consultant Andy Godley, speaking in the Wipro Water Theatre at this year's Utility Week Live. But what is smart data, and how can it be used effectively? The answer is to think SMART. S is for specific What do utilities want? Specific data is important, as it can help both water and energy companies identify and fix a problem. M is for measured Information that is coming from a sensor or a meter in the water or energy network can be used to measure the amount of energy or water being used by a customer. This should make it easier to incentivise customers to reduce their energy and water use, as resources become more constrained. A is for acceptable Smart meters "appeal to the pocket of customers," says Godley, but data privacy is impor- tant. Customers must have the right to choose which companies can see their data, and how much of it they can see. R is for realistic Utilities need to understand the limits of the technology, and be realistic about the extent to which data can aid them. Poor quality data is likely to hinder rather than help. T is for time Data collected efficiently will allow a utility company to identify and fix a problem – such as a leak for a water company or a problem at a substation for an electricity distribution company – quickly. LV What we learnt about data and analytics DATA ence of successful competitive markets, Nolan continued to say that he would like networks to join suppliers in facing "real challenges" and that the "they may not have their monopolies in 20 years' time". Pro-market water regulation: Ofwat chief Cathryn Ross set out an ambi- tious agenda for the sector's transforma- tion. A key point was the future for water company relations with third party sup- pliers and contrac- tors. As Ofwat looks to encourage market Price regulation threat for energy firms: Ofgem chief executive Dermot Nolan was clear that there will be trouble should he see resist- ance to the CMA's rulings next month. Ambition to end the monopoly of energy networks: Leaping from one provocative statement to another, Nolan said that he would advocate an end to monopoly rule in energy network operation. As he set out his personal desire to see regula- tion "wither on the vine" in the pres- changes which will enable "transforma- tional efficiency" in the sector, Ross says she looks forward to the growth of "direct procurement for customers". This might lead to "the appearance of third party solutions that include designing, building, maintaining and potentially even operating new infra- structure". Prepare for the age of water network management as a service. Nissan energy storage ambitions: It was a pleasure to welcome a number of speakers from the automotive sector to Utility Week Live as we sought to highlight common areas of business transforma- tion, from exploitation of the Internet of Things to increased focus on operational investment over capital expenditure. Nissan Europe's chief information officer set out the rationale behind the company's recent EV announcements and was clear that Nissan is exploring the scope for partnership with utilities – both in sup- ply and distribution. REFLECTIONS ON THE KEYNOTE CONFERENCE From threats for price regulation in energy retail to propositions for smart home partnership between automotive manufacturers and utilities, there were many talking points throughout Utility Week Live 2016. My particular vantage point was the keynote conference, which I chaired across the two days of the exhibition, and these are my observations: l Everyone's excited about sludge "I never thought I'd be so excited about sludge" – a quote overheard near the Pumping Station at the show, where con- versation turned to the commercialisation of sludge. Sludge – or, more specifically, competition in the sludge market – is something both water companies and the wider industry have been get- ting very excited about. Read the full blog, visit: http:// bit.ly/1suOjnj