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14 | 27TH MAY - 2ND JUNE 2016 | UTILITY WEEK UtilityWeek Live U tilities are at a pivotal point of trans- formation into a smarter, more con- sumer-focused sector. Speakers at Utility Week Live in Birmingham this year told us that the toughest challenge of all, though, comes from the ever-growing expec- tations of consumers. Smart "Good is no longer good enough," said Eon's UK head of smart Hub Dr Jon Kirby in the Electricity Theatre. Consumers are demand- ing more, and for the energy sector, the smart meter rollout provides the industry with the opportunity to meet these expectations. Data Communications Company (DCC) chief operating officer Joan Whitehead added: "I think we will have a few chal- lenges, but I hope the consumer is at the front of our minds." CMA The final remedies in June 2016 from the Competition and Markets Authority investi- gation into the energy industry should push suppliers into engaging with their custom- ers. If not, Ofgem will step in to ensure it happens. Ofgem chief executive Dermot Nolan warned the industry it must embrace the rec- ommendations, otherwise plans "to regulate electricity and gas prices more widely may go back on the table". Water A new conversation about customers in the water sector also arose at Utility Week Live, changing the tone away from processes, regulations, market structures and how the system operates. Ofwat chief executive Cathryn Ross said that one common thread behind all the transformation is the focus on benefiting customers and improving the service they receive. SJ Customers It is not enough to provide adequate customer service – you've got to meet customer expectations. I n this period of transformation in the energy sector, network operators are acutely aware of the need to innovate to remain relevant and capable of servicing the evolving energy market. One of the big points of debate between stakeholders in the industry is how long networks should be incentivised to innovate before they are le to their own devices. Seminars revealed just how far network operators have come with this support, argu- ably to the point where it is now business as usual. But they also revealed just how much further there is to go, and offered a glimpse of the future if this funding remains in place. Ofgem currently supports networks to innovate through several funding mecha- nisms such as the Network Innovation Allowance (NIA) and Network Innovation Competition (NIC). Both the NIC and its pre- decessor the Low Carbon Networks Fund (LCNF) have come under scrutiny in recent months as Ofgem determines if, and in what form, this support should continue. The general consensus is that both have been a force for good, but Ofgem has reiterated in recent months its intention to remove sup- port when innovation becomes business as usual practise. Findings presented at Utility Week Live from LCNF projects nearing completion show the money spent is reaping rewards. Elec- tricity North West's Smart Street project has been trialling voltage control techniques to optimise network voltage and minimise the impact of low-carbon technologies while maintaining voltage levels. The project cost £11.5 million and has identified £350 of rein- forcement savings over 25 years for each household. Multiplied up, savings for the whole of the UK reach £8.6 billion over the 25-year period. Results are not just monetary savings. UK Power Networks' storage project at Leighton Buzzard, again funded through the LCNF, has allowed it a position of influence on the ongoing discussions on the future of energy storage. It expects to publish the business case for distribution network operators using energy storage next month. This type of innovation supported by the NIC was heralded by Maxine Frerk, formally the head of networks at Ofgem, as the real success of the move to the RIIO price control model. So are networks there? Has innovation received enough special treatment and is this now an area where funding can be cut? UK Power Networks' director of safety, strategy and support services Suleman Alli told dele- gates: "Technology is not our barrier, it's our ambition." LD UWL2017: Flexibility in transformation Utility Week Live 2017 will take place on 23-24 May 2017, again at the NEC Birmingham. The overarching theme for next year's show will be flex- ibility in transformation. We look forward to seeing you there. A step closer to business as usual? There will come a time when networks will no longer be paid to innovate. Innovation "The volumes we have to deliver… are fairly heroic." Dr Jon Kirby, digital customer experience man- ager at Eon, on meeting the smart meter rollout target "From our perspective, there are now no technical impediments to the market opening." Ben Jeffs, chief executive, MOSL